Huge upsurge in the import-export of dual-use goods to Azerbaijan and Russia, routed through Bulgaria (updated)

A channel for transit of dual-use goods through Bulgaria to Russia has been detected, Finance Minister Asen Vassilev said on December 4.

He and Prime Minister Denkov held talks with EU Financial Stability Commissioner Mairead McGuinness, whose portfolio includes overseeing the implementation of sanctions against the Russian Federation over the war in Ukraine. According to PM Denkov, it is about products that have electronic components.

The import-export channel of dual-use products through Bulgaria to Russia passes through the Bulgarian-Turkish border, Finance Minister Assen Vassilev explained.

“And from there to Armenia, Azerbaijan and other countries as the final destination. From there on, it is clear that there is repurchase and transfer to Russia. And this is exactly the issue on which we have started working very actively with the EC to identify the companies, to identify the channels and to dirupt them," the Finance Minister said.

The dual-use goods that pass through Bulgaria to Russia have electronic components, Prime Minister Nikolai Denkov explained. The problem is not just Bulgarian, but Europe-wide.

"There are over 20,000 companies and contractors who are actually involved in sanctions circumvention and supplying materials to or from Russia. And we discussed about how our two teams can work much more actively to dirupt this, because the problem everywhere in Europe, not only in Bulgaria, is that usually these companies work with legitimate customs documents," Assen Vassilev, Minister of Finance, said.

100% inspections of lorries, changes in the law, tracking the transit patterns of such goods are some of the measures Bulgaria will implement together with the EC. Dual-use goods are also among the highlights of the 12th EU sanctions package against Russia, which is being discussed.

"We have to be extremely strict. Let's be careful about trade flows. We know, also, from feedback that there are certain components and goods that go on, and go to the battlefield. And they are coming from countries that are circumventing the sanctions," said European Commissioner Mareid McGuinness.

Regarding allegations made in a report by several organisations that Lukoil Neftohim is also circumventing sanctions, the Prime Minister commented.

"When the report in question was released and then the articles that discussed it, in fact there is no evidence in it, there are assumptions, there are suggestions and all our checks absolutely categorically show that Lukoil Neftohim has not violated a single European regulation, a single Bulgarian law, a single customs regulation," said Nikolay Denkov.

Denkov assured that if evidence of abuse comes to light, it will be announced to the public.