UAE may join technology sanctions against Russia under pressure from the West

The United Arab Emirates is considering imposing export controls on Russia, similar to those imposed by the United States and the European Union as part of sanctions.

Source. Bloomberg reports this with reference to sources familiar with the situation.

The UAE's sanctions may affect chips and dozens of other dual-use goods used in the production of weapons. If export controls are triggered, a license from the UAE government will be required to supply such products to Russia.

After the outbreak of the war and the imposition of sanctions, the Emirates became one of the largest hubs for parallel imports to Russia: Thousands of companies opened representative offices in Dubai, where, according to Fortune, up to 30% of wealthy Russians moved with their money.

This has angered European and American officials, who have visited the UAE at least three times this year to persuade local authorities to stop violating sanctions.

The last such visit took place in September 2023: delegations from the United States, Britain, and the EU expressed concern that the Emirates remained a transit hub through which sanctioned products reach Russia.

Now, Western diplomats are insisting that the UAE impose export controls on 45 commodities, including high-tech ones.

These include, for example, electronics for drones, cruise missiles, and helicopters used in the war against Ukraine. The UAE has not yet made a final decision on joining the technological sanctions against Russia, Bloomberg sources emphasize. Instead, the Emirates are counting on being removed from the "gray list" of FATF countries (Financial Action Task Force on Money Laundering).

Background. As reported, the United States has begun to eliminate the largest hubs for the supply of electronics to Russia. Among the 150 legal entities and individuals against whom the US imposed sanctions are Turkish, Finnish, and Arab firms.