Russia’s War in Ukraine: #UAE Considers Trade Licenses for Sanctioned Tech - Bloomberg

Russia’s War in Ukraine: UAE Considers Trade Licenses for Sanctioned Tech - Bloomberg

The United Arab Emirates is considering introducing export licenses for a list of items including chips and other components that are sanctioned by the US and European Union and used by Russia’s military in Ukraine, according to people familiar with the matter.

If implemented as envisaged, the system could see permits withheld for dual-use goods destined for the battlefield, potentially hurting the Kremlin’s ability to feed its war machine. The people, who spoke on condition of anonymity to discuss private matters, cautioned that the Persian Gulf nation has yet to make a final decision.

Asked about the plan, a UAE official said the country takes its responsibilities as a business hub seriously: “The UAE has a legal export control framework in place and is continuously monitoring the export of dual-use products.”

Russia has so far been able to get around some of the trade restrictions imposed on it by the US, UK and Europe by routing banned goods via third countries such as the UAE, Turkey and some Central Asian nations that have not introduced sanctions themselves.

Already a global logistics and trade hub, the UAE has seen a surge in imports of technology such as semi-conductors and advanced electronics from Europe and the US over the past 18 months. Many of these items have been found in Russian weapons in Ukraine or are needed by Moscow to produce them.

Western officials have ramped up demands in recent months that the UAE stops acting as a gateway for Russia to get around the restrictions. Earlier this month, sanctions envoys from the US, UK and EU visited the UAE to raise their concerns, including that Dubai remains a key transshipment point for components supporting Moscow’s war effort, some of the people said.