Updating the EU’s Export Control Regime

Russia's Impact on EU Export Control Regimes

• Due to Russia's illegal invasion of Ukraine, the EU's ability to coordinate and implement adequate customs controls has been vital to implementing effective sanctions.

• Russia's participation in international organizations allows it to wield a veto over trade restrictions, thereby undermining their effectiveness, including blocking the adoption of import controls in the Wassenaar Agreement.

• Some countries have begun implementing unilateral export controls, leading to an increased risk of the fragmentation of  the EU's single market.

• According to the European Commission, the EU lacks a legal mechanism to initiate an export control regime but currently relies on a compilation of national control lists.

Issues in Current Framework

• The European Commission notes that the existing framework does not allow uniform and adequate export controls to be implemented promptly.

• Current member states need to coordinate their positions on export controls during multilateral meetings, because the lack of consensus has resulted in the absence of a unified EU stance.

• Trade within the EU allows countries to circumvent restrictions that one or more member states may impose, rendering national export regimes ineffective.

• Nonetheless, the EU has successfully and rapidly deployed export restrictions on Russia, effectively communicating through increased information-sharing systems like the Customs Risk Management System (CRMS2).

Proposed Changes

• Expand Annex I of the EU's Dual-Use Regulations to enable simultaneous adaptation of export controls across all member states.

• Member states are encouraged to notify other member states when updating their national control lists, to enhance coordination of national interests and security.

• Establish a forum for member states and the Commission to discuss and coordinate the implementation of new export controls.

• Given Russia's illegal invasion of Ukraine, the evaluation of the Dual-Use Regulation, originally scheduled for 2028, should be advanced to the first quarter of 2025.