Kleptocracy is a system where ruling elites exploit high-level political power for personal gain through corruption. It goes against democracy and promotes inequality. Russia under Vladimir Putin represents this system, where corruption enriches the few and extends its influence abroad.
Belgium (Brussels Morning Newspaper) The EU has taken significant steps to address this issue. We find the funding of Russian kleptocracy unacceptable, and we are committed to combating it. Measures like the beneficial ownership register have been crucial in countering sanctions circumventions. However, a recent ruling has posed a threat to our efforts against money laundering and illicit financial flows.
Financial data leaks, investigative journalism, and civil society activism play a vital role in exposing Russian kleptocracy. These leaks have revealed the extent to which kleptocrats rely on the global financial system and intermediaries, including banks. Progress in combating kleptocracy and money laundering has been slow, mainly due to resource and information limitations faced by law enforcement and courts in Western countries. So, there is a huge potential for improvement in this area.
Russian bloody gems
Nevertheless, we are determined to target the key players in the system. One significant source of funding for Russian kleptocracy is the export of uncut gems. The International Working Group on Russian Sanctions has proposed including Alrosa and Grib Diamonds on the EU’s list of sanctioned entities, imposing individual sanctions on their top management, and implementing a ban on all Russian diamonds. By disrupting the financial networks and limiting access to international markets, our aim is to cripple the funding mechanisms that sustain the kleptocratic regime.
However, we face obstacles in this fight. Kleptocrats have learned to exploit vulnerabilities in our systems, such as unregulated offshore accounts, shell companies, and inadequate rule enforcement. Even within the EU, there are differing opinions on how to approach Russian exports, with some countries advocating for a global approach rather than an EU-specific ban.
Belgium, most concretely, is the single largest EU importer of Russian diamonds. They are completely opposing the inclusion of the Russian gems in the sanctions list.
Threat to EU Democracy
There is much discussion to be had, but the EU remains committed to countering the funding of Russian kleptocracy. The authoritarian regime in Russia poses the single greatest threat to our democratic EU. We cannot enable or fund this regime in any way. It is our duty to find a robust sanctions mechanism that will weaken the kleptocratic regime and bring true democracy to the people of Russia, fostering peace in Europe.
I believe that through unity and collaboration, we can build a better future. Let us work together to establish a stronger sanctions framework and bring an end to the kleptocratic regime, ensuring democracy and peace for Europe.
