Russia continues to export vast amounts of gas and oil to Europe while importing military goods and mission-critical hardware to fuel its war against Ukraine. Despite more than a dozen rounds of sanctions imposed by the European Union and G7, some of Moscow’s most notorious strategic corruption projects, NordStream and TurkStream, and their related state capture networks continue to operate. This ongoing trade has not only funded Russia’s aggressive policies but also undermined the EU and NATO's geopolitical and geoeconomic standing, particularly in frontier regions like the Black Sea and the Balkans.
On June 6, 2024, the Hudson Institute in Washington D.C. hosted a discussion, devoted to the role of strategic corruption and the challenges ahead. A panel with Kleptocracy Initiative Fellow Nate Sibley, Center for the Study of Democracy Program Director and Chief Economist Ruslan Stefanov, CSD Energy and Climate Program Director Martin Vladimirov, and Dragan Koprivica, executive director of the Center for Democratic Transition in Montenegro, discussed how to dismantle Russia’s state capture networks in Europe.
Senior Fellow Matt Boyse and CSD Chairman Ognian Shentov delivered the opening remarks.
Russia’s “no-limits” partnership with China, Europe’s lack of robust common sanctions enforcement, and a patchwork of improperly integrated anti–money laundering and criminal prosecution frameworks have emboldened Moscow’s strategic corruption efforts. Governments and stakeholders seeking gains from transactional diplomacy further enable Russia, exacerbating these issues.
Europe still relies heavily on the United States for implementing effective economic security policies, similar to its dependence on the American defense sector. This dependency highlights the urgent need for the EU to accelerate the development of its common institutions for sanctions enforcement and other economic security measures. Prioritizing decoupling from Russia’s oil and gas networks is essential.
Ruslan Stefanov, Program Director at the Center for the Study of Democracy, presented the latest report, Kremlin Pitstop, which details the path of Russian petrol to the EU through Turkish ports despite the EU/G7 sanctions imposed in February 2023. Stefanov emphasized the importance of the EU's ability to accelerate the development of its common institutions for sanctions enforcement and other economic security measures, highlighting the need to prioritize decoupling from Russia’s oil and gas networks.
Martin Vladimirov, Director of Energy at CSD, presented a new policy brief that offers further insights into Europe’s dependency on Russian energy. Vladimirov outlined the legal paths through which Russia continues to sell gas worldwide, despite international sanctions.
Moving forward, the EU must take decisive action to strengthen its economic security and sanctions enforcement frameworks. By doing so, it can better protect its geopolitical interests and reduce dependency on Russian energy. The United States can support this process through more assertive interventions in high-profile cases and by providing capacity-building support and cooperation.
