By Jan Strupczewski

BRUSSELS (Reuters), – Wednesday’s European Commission proposal made it a crime to break EU sanctions against Russia. It would permit EU governments and corporations to take assets of individuals or companies who have evaded EU restrictions against Moscow.

In 12 EU member countries, breaking EU sanctions against Russia are now criminal offenses. The offense can be either administratively or criminally punished in thirteen countries, while two other EU nations treat it as an administrative offence. Justice Commissioner Didier Réynders stated that. The EU sanctions for violating them vary in severity.

He stated that the Commission’s proposal would unify this approach and make sanctions evasion in every member of the bloc of 27 nations a serious offense.

The Commission stated in a statement that “Today’s propositions aim to ensure the assets of individuals or entities that violate restrictive measures can effectively be confiscated in future”,

So far, the EU has frozen more than 10 billion euro in tangible assets and over 20 billion euro in bank accounts belonging to Russian oligarchs supporting the Kremlin in its war in Ukraine.

Before these assets can be taken and sold, however, the oligarchs must first be convicted for trying to evade sanctions and other criminal offenses. Assets seized will have to be tied to this crime.

This new EU law must be unanimously approved and ratified by all EU nations. A majority of the European Parliament would then penalize those who break sanctions.

Additionally, the Commission suggested that it would be easier to confiscate the assets of criminals within the EU. This could allow for an immediate freeze order to block the assets’ movement, prior to any formal court order.

Based on the Commission’s estimates, criminal gangs make a total of 139 billion euro annually. However, just 2% of those revenues are frozen by the authorities. Only half the assets which were frozen are eventually confiscated.

“With the new Directive we will be significantly more efficient in that,” Home Affairs Commissioner Ylvajohansson declared.

Most EU countries do not have sufficient legal structures to seize illegal assets. This makes it easy for criminals hide their funds and reap the benefits of illicit activities.