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Korea’s Illegal Export to Russia: Traders Caught Circumventing Sanctions

A view of the port of Vladivostok, Russia. /Reuters·News1

While the export of domestic goods to Russia has been controlled since Russia’s invasion of Ukraine in 2022, the amount of money that traders were caught illegally exporting to Russia through third countries such as China or Malaysia or by deceiving the destination was found to be over 18 billion won last year.

According to the Korea Customs Service on the 10th, the number of cases in which traders were caught exporting banned items to Russia last year was 8, and the amount of detection amounted to 18.3 billion won.

Combined with the 270 million won (2 cases) detected in 2022, when export controls began, a total of 18.57 billion won (10 cases) was detected over the two years.

Korea implemented export control measures against Russia in February 2022, immediately after Russia started the war in Ukraine. The intention was to participate in the international community’s sanctions against Russia.

In March 2022, a month after the outbreak of the war, 57 items, including semiconductors and computers, were banned from being exported to Russia. Since then, the number of banned items has increased and currently stands at 1,159.

However, some traders were caught trying to avoid the ban by transiting through third countries such as China or Malaysia.

For example, two traders, including Mr. A, were caught by Busan customs while illegally exporting a total of 100 cars and jet skis worth about 5.1 billion won to Russia through Malaysia for about a year starting in July 2022.

They also deceived the authorities into thinking they were exporting to Russia’s neighboring countries, such as Kazakhstan and Kyrgyzstan, then changed the recipient during the transport process and sent the goods to Vladivostok, Russia. Busan Customs recently sent these businesses to prosecution on charges of violating the Foreign Trade Act.

Another trader, Mr. B, was caught by the authorities last year while exporting 1.7 billion won worth of semiconductor equipment to Russia via China.

Traders also submitted false documents to customs authorities during the illegal export process.

For example, Mr. C illegally exported a total of 240 billion won worth of outboard motors (engine equipment mounted on the outside of a boat) and yachts, which are prohibited export items, to Russia for four months from October 2022, and in the process, submitted documents to the authorities. In the ‘self-determination form’, it was written as if the goods being exported were not prohibited items.

A customs official said, “As a responsible member of the international community, we will actively participate in sanctions against Russia and fulfill our role as a global central country,” adding, “If the public discovers such illegal activities, we hope that they will actively report it to the Korea Customs Service’s Smuggling Reporting Center.” “Please,” he said.

2024-02-10 05:04:04
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