UAE denies sanctions violations as it deepens economic ties with Russia
UAE denies sanctions violations as it deepens economic ties with Russia
Since the Russian invasion of Ukraine many Russian nationals have emigrated to the UAE, which has emerged as a market for Russian gold and oil amid Western sanctions.
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The UAE has witnessed an influx of Russian nationals, which has helped cause a property boom [Getty]
The UAE has reaffirmed that it is complying with the international sanctions regime against Russia over its invasion of Ukraine following reports that economic ties between the two countries have deepened.
A UAE official stated that while "the ongoing global climate has led to financial and investment inflows to the UAE" it takes its "responsibilities extremely seriously, especially given the current circumstances."
The official, speaking with the Wall Street Journal (WSJ) said that the UAE has a robust process to deal with sanctioned entities and individuals and UAE banks monitor compliance with sanctions in order to prevent violations of international law.
It comes as the WSJ reported ties between the UAE and Russia had dramatically deepened, with the UAE buying Russian oil and gold, and has witnessed an influx in Russian citizens into the country - including some who had been sanctioned - leading to a real estate boom.
According to ImportGenius, a US trade data aggregator, the UAE imported $4 billion of Russian gold between 24 February 2022 and 3 March 2023, up from $61 million in 2021.
It also tripled its import of Russian oil to 60 million barrels, according to commodity data provider Kpler. The UAE either resells the oil, or refines it into other products.
Moreover, Igor Sechin, a close aid to Putin, and Chechen leader Ramzan Kadyrov's 15-year-old son Ali, have both visited the UAE since Russia's invasion.
Sechin celebrated New Year on the Island of Palm Jumeirah off the coast of Dubai, whilst Ali has numerous Instagram stories of him undergoing MMA training in Dubai. US sanctions on Sechin and Ramzan do not prohibit them, nor Ali, from visiting the UAE however.
The influx of Russian nationals has meant that Russians have now become the third largest buyers of property in Dubai, according to real-estate agent Betterhomes.
The US has not imposed secondary sanctions on Russia meaning states like the UAE are still able to do business with Russia without aggravating their relationship with the US.
In June however, the US sanctioned an Emirati company for buying minerals from the Central African Republic through the Wagner Group, which is active in the country.
It also sanctioned a Russian airline based in the emirate of Sharjah for transporting Wanger mercenaries and equipment to Africa.
The UAE is not the only country to have gained from the exodus of Russian nationals and capital.
Both Armenia and Georgia have witnessed an influx of Russians, and both countries experienced double digit economic growth in 2022, outpacing World Bank forecasts.
The Armenian tech industry is one notable sector that has been experiencing a boom following the influx of thousands of Russian nationals who have sought to evade conscription.
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