Is there a pilot onboard? Coordinating the application of restrictive measures at the EU's eastern border

The absence of uniformity in documentation and control standards across EU Member States creates legal and operational obstacles for businesses operating within the Union. For instance, compared to Slovakia or Germany, Poland and Lithuania require significantly more detailed documentation – often without a clear legal basis – for equivalent commodities transactions. This inconsistency makes it harder to follow EU regulations, leaving businesses with considerable uncertainty.

The freedom afforded to Member States by EU regulations results in varied national strategies for enforcing sanctions. For example, Lithuania adopts a stricter approach to Belarusian drivers seeking entry into the EU compared to Poland. This disparity extends to the regulations that apply to EU businesses with ties to Belarus or Russia. It is particularly visible in local laws regulating buyouts, compulsory administration or other measures aimed at severing connections with stakeholders outside the Union.

Financial institutions have also taken various approaches to dealing with transactions that cross this recently formed Iron Curtain. Such inconsistencies threaten uniform enforcement and undermine the EU's overall objectives regarding sanctions.

Deeper EU-wide unification of sanctions laws is necessary to overcome these issues. While steps are being taken in areas such as criminal law, this effort should extend beyond substantive law to include procedures and practices employed by customs authorities, agencies and financial institutions. The significant changes that should take place in the EU customs legislation, along with the transition to unified electronic customs' reporting, present an excellent opportunity for harmonising sanctions as well.

In the absence of coordinated EU efforts, Member States may continue to operate unilaterally, further fragmenting the market. For example, despite reservations about its conformity with EU laws, Poland has already passed its own sanctions act and is preparing a major revision. The Baltic States, Poland and Finland established the Baltic Customs Initiative to ensure consistent enforcement of sanctions, with Croatia joining later. The sector-specific agreements also play a significant role in the enforcement process. One example is the European Union Timber Regulation, which targeted the import of birch plywood from former Soviet states. 

Nevertheless, the problem of divergent implementation of restrictive measures in the EU is not adequately addressed by these local or sectoral initiatives. There are growing concerns that the EU may develop a "multi-speed" approach to enforcing sanctions, with Western states proceeding more slowly than their Eastern counterparts. 

Businesses operating in this environment need to ensure they follow proper due diligence processes, are supported by robust legal analysis and engage advisors with practical experience from all CEE markets. Such an approach is crucial for navigating this complex terrain.

authors: Szymon Czerwiński, Sergiusz Felbur