Just Don’t Get Caught: Europe Announces Sanctions Against Russia as it Prepares Smuggling Operation
Last Thursday, at the summit in Brussels, the heads of the EU member states have pushed for the extension of anti-Russian sanctions for another year. Unanimously and, for the first time, without arguments. Germany suffers the biggest losses. According to the Kiel Institute for the Global Economy, cutting trade with Russia makes Germany lose 727 million euros every month. Simple math shows that it's almost 9 billion euros a year. Spain, Italy, Poland and France also suffer severe losses.
It could have been even worse but even as Europe votes for sanctions, it also gets its goods ready for smuggling into Russia. Everything goes down quietly. In Europe, nobody gets caught.
Our special correspondent Arkadiy Mamontov — on cheating.
We started our investigation in Lithuania. There's a huge logistics and customs center in Vilnius where products prohibited for import to Russia get different labels. In one hour, it processes nine 20-ton trucks stocked full of Polish, Italian and Spanish fruit, jamon, cheese, canned food and seafood. The work is going smoothly. After putting boxes and packages on pallets, designated workers stick on a new barcode. The barcode contains information that allows these pears, for example, to change their origin from Italy to Djibouti in a matter of few seconds.
- We wanted to ask about re-labeling. Who do we talk to? We need to arrange for a Spanish cargo to enter Russia.
- I'm not authorized. You know, you should go to the office.
We are wandering around the corridors, searching for the office of customs brokers who forge documents for smuggling good into Russia. A nice girl only asks what would be transported and how often?
- What's the cargo?
- Pears.
- Only pears? Or something else, too?
- Pears and, as I was told, also kohlrabi. Maybe, apples. We wanted to do 40-50 trucks before the New Year.
We invented a company called Cornu Petat Et Pedibus. It's a Latin name. In English, it means Horns and Hooves.
Horns and Hooves is, apparently, a serious partner for the produce mafia. We get in contact with Ruslan. He's the man behind the entire cartel. He explains in detail how Spanish apples miraculously turn into Tanzanian pears
- When Afghan citruses come from Europe, when Afghan persimmons come from Europe, customs officers never ask why it is like that. They understand that it was shipped to Europe by sea where it was further redistributed.
- So where will our fruit be from? Afghanistan?
- First, we'll have to look at the documents you have. Basically, it can go through any African country.
Meanwhile, in Lithuania, Asian and African stickers are being put on the pallets with juicy fruit. But the so-called re-labeling is just a first stage.
- Re-labeling is just a small part of the process. There are other documents, like phyto, source documents, export, travel papers. First, the car goes to Belarus. Then it clears the customs and goes to Russia.
- And no questions, no problems?
- No. That's the scheme we're using.
- From Lebanon it went to Italy?
- Yes, to Italy. Only I don't know how. Ah, in a container.
- In a container. To Italy.
- Yes. And from Italy to Lithuania.
- And this fruit is actually Italian?
- It can be, yes.
- Do you provide support at customs? To make sure the car is cleared?
- Yes.
- So you have your guys there?
- Yes.
Lithuanian customs issues certificates and licenses very fast. It's 3-6 thousand euros per truck. Thousands of trucks pass through this terminal every month. The locals know what's going on in this facility but keep quiet.
- Do you speak Russian?
- Yes, sure.
- It's our first time. We are also going to Russia, to Ulyanovsk. Are there any problems?
- No, everything is okay.
- Which city are you going to?
- I don't know yet. They'll tell me later.
- But also to Russia, right?
- Yes.
- And Russian customs officers let us through, no questions asked?
- No problems. On both sides.
- Thank you!
This car with illegal cargo will go to Russia despite all sanctions, and we are going to stay on its tail.
Federal Customs Service: “Transit declaration. What do you transport?”
It's very difficult for Russian customs officers to uncover these schemes. The smugglers' ingenuity sometimes surprises even the most seasoned specialists.
Custom official: "You see, here, in paragraph 31 it says polyurethane coating. In reality, in this particular case, they were transporting Polish pears".
Sergei Lozinskiy, Smolensk Customs: "Compared to the previous year, the number of cars that were detained for transporting sanctioned products, has increased 1.5 times. To give you some other numbers, in 2017, we've identified more than 250 shipments. Also, at Smolensk customs, together with Rosselkhoznadzor we destroyed more than 4,000 tons of sanctioned goods."
Two days later, the truck we were following, arrived to one of the warehouses in Central Russia. "A 9856B-5”. It's Minsk Region. The majority of smuggled goods comes in through Belarus and Baltic countries.
On one hand, western countries have boycotted and sanctioned us, proclaiming that they hate Russia, that Russia has an awful regime and bad people. Yet they don't want to let go of our market, pushing thousands of tons of non-certified products on us, using any means possible.
The customs officers detained this car, one of the hundreds or even thousands to have crossed our border in these two days. Inside, they found Italian pears looking like they originated in Djibouti, a small African country located between Ethiopia and Eritrea. Somewhere on the Horn of Africa. That's the camouflage of smuggling.
Arkadiy Mamontov. A special report for Vesti News of the Week