we're on our way to the Russian Georgian
border it's believed that in spite of EU
sanctions Western goods are making their
way into Russia here a country Waging
War we're going to try to find out
whether this is true has anything
changed here in the last months
nothing it's like it's always been
[Applause]
[Music]
we're in Georgia the former Soviet
Republic is these days oriented towards
Europe
it wants to join the EU but it also
still has close economic ties with
Russia
what happens here in the Caucasus is a
determining factor for the success of
Western sanctions
Goods that could be used by the military
such as Cutting Edge technology
drones
or replacement parts for the oil
industry May no longer be exported to
Russia
Georgia officially supports the
sanctions but what is really happening
on the ground
we meet durico akania in the city of
tsukdidi she's a member of the local
Parliament and takes us to a border
control station
the police are watching us yes
this officer seems nervous he wants to
ask his boss if we're allowed to film
here
meanwhile one van after another passes
through the security gate some have to
stop for inspection
the green garbage truck however is
allowed right through
although over the next hours it keeps
driving back and forth every 10 minutes
it isn't clear what it's carrying but
what is clear is that the authorities
are looking the other way
di Rico Arcania says she knows what's
happening
is mostly inspect the normal trucks turn
a blind eye to Smugglers
this here is a special checkpoint
the Georgian city of zugdidi lies on the
disputed border with abkhazia under
international law the territory belongs
to Georgia but it has been under Russian
control since the early 90s many people
in abkazia have Russian citizenship
for the sanctions this means that
everything that enters abkhazia is de
facto in Russia that's why the disputed
border here is so important from now on
we can only film Undercover the officer
wants to get rid of us
our government knows about everything
that's going on here
we have
Norwegian Economist Airline Bulman
bjorkvett confirms this he has traced
the various routes over which sanctioned
Goods into Russia it also communicated
so you can actually stand with a truck
in Georgia but de facto will find
yourself on russian-controlled territory
is only one possible path
according to bjorkvet the data paints a
very clear picture
also for Russia so we can actually see a
good throwing into Russia from Central
Bridge we can see what kind of thing
that how many kilos or pieces occasions
and then we've also found some of the
goods in Russia for example drones with
camera having been exported by Western
countries have been found in Russia so
it's quite clear that Western goods are
flowing to Russia and spider sanctions
drive to the capital Tbilisi we've
arranged to meet in the Ministry of
Finance with otara khadsi from the
beginning of these actions we are doing
our best
um
the control of the goods and all the
companies all or the persons who are in
the sanctions list by this these seven
countries and other countries who can
imposed these sanctions
but statistics statistics indicate a
different picture while German companies
have been reducing their deliveries to
Russia
they've been increasing their exports to
Russia's Neighbors
to Georgia by 48 percent in the first
quarter of 2023 compared with the
previous year to Armenia by 132 percent
and to Kyrgyzstan by
773 percent
[Applause]
Georgia and Russia's other neighboring
countries have been suddenly become rich
enough to afford the increased Imports
the only plausible reason for the rise
some of the goods are making their way
into Russia
most Georgians such as these protesters
are highly critical of their powerful
neighbor to the north
the overwhelming majority here want to
join the EU in NATO and show strong
solidarity with Ukraine
for opposition Member of Parliament Anna
Nach flushfili the question of sanctions
is a kind of litmus test for which
direction the government is steering the
country in
she wants Georgia to prevent dual use
items from reaching Russia
these can be used for both civil and
Military purposes such as microchips
the Prime Minister could not respond to
the question
give me a single act hello a bylaw an
order by a minister which regulates the
issue and makes Georgia protected
from the risk of becoming a black hole
because that you cannot govern a state
by Oral statements you need to have
legislative Acts
Airline Bowman bjorkvat doesn't think
this is a coincidence
they have neither the legal Frameworks
not available
for Georgia to export Russia or to
facilitate exports to Russia
if no corresponding laws or guidelines
exist
area in which trade of sanctioned
products ultimately goes unpunished
at the same time the Georgian government
knows that Russian troops are already
stationed on Georgian territory such as
in upkazia
these troops could reach Tbilisi in no
time
all this Stokes the conflict between
George's wish to Pivot Westward and the
harsh geopolitical reality
we meet Katya nicolasvillei
the accusations made by her
anti-corruption NGO the national agency
of public registry go even further
she takes us along to the city
administration's vehicle Fleet once
again we are given the brush off no
filming allowed nope
we go to the back of the property
there they are Russian Kamas trucks
which according to hatia nicolasvillei
were bought with taxpayer funds in 2022
after the war started
Kamas is a company that is half owned by
the Russian state
the Russian army uses kama's military
and armored vehicles in its invasion of
Ukraine the company is on the sanctions
list
trading with a company like this which
is financed by taxpayers money is a
serious offense
the fact that Georgia buys the trucks
from the camels but we can say that it's
the indirectly financing the war in
Ukraine which is a very terrible thing
DW contacted the mayor of Tbilisi for
comment but the inquiry remained
unanswered we drive to the edge of town
Western Vehicles as far as the eye can
see were at one of the biggest car
markets in the Caucasus since the start
of the war Russians haven't been allowed
to buy expensive luxury cars directly in
the west a sanction targeting affluent
Russians the ban also aims to prevent
the use of certain vehicles to transport
officers to the front
there is a lot of
use in having a strong diesel car an SUV
at the land of organ uh enter
battlefields so we see these cars being
used both for luxury and for Battlefield
purposes
High horsepower at markets like this
with a hidden camera we ask a dealer
is this
Georgians azeries and Armenians come
here to buy ordinary cars maybe they're
also buying the cars for Russia
it goes like this a kergis buys a car
brings it to Kyrgyzstan and sells it
there they're all middlemen here
foreign
so how would such a car get to Russia
one option is completely legal
the car travels via Azerbaijan and the
Caspian Sea to Kyrgyzstan
from there it's easy as Kyrgyzstan has a
customs Union with Russia
we keep looking hardly anyone wants to
talk to us
[Music]
thank you
we discovered that there are apparently
several ways of getting around the
sanctions
the car goes to Russia then to
Kazakhstan and then to Kyrgyzstan by
train
do you understand the vehicle comes in
on a rail car
that's the official route but the
Traders hint that once the car is on
Russian territory there's no guarantee
its Journey won't end there
we hear that another route to Russia
goes via Armenia and decide to go it's a
two-hour drive to the Georgian Armenian
border filming is strictly prohibited
just before the Border are car haulers
the drivers don't want to say anything
on camera
on this export route a car is brought
from Georgia to Armenia and is given new
papers there
Armenia is part of the Customs Union
with Russia meaning a car can go from
Armenia to Russia completely legally
back in Georgia's capital Tbilisi we
want to find out exactly how it works
and try to send a luxury car to Russia
ourselves
this Mercedes from an Iranian dealer
catches our eye
the car is in great condition with
hardly any miles and a leather interior
we agree on 55 thousand dollars
is there a way of getting the car to
Moscow
we're told the car could be exported via
Iran in the Caspian Sea to Russia
another possible loophole that's enough
for us and we cancel the purchase
it's becoming clear that in this highly
complex geopolitical region many
well-intended Western sanctions quickly
fail when they clash with reality
our next test one of Georgia's Key Port
Towns on the Black Sea potty
to really hurt Russia's economy Russian
exports of raw materials have to be
targeted as these are moscow's biggest
source of income
Western sanctions are meant to stop
Russian oil shipments by sea
but when we meet vazo urushazi from an
anti-corruption NGO he tells us there is
evidence indicating that raw materials
from Russia are being traded here in the
port
this is a base for the Russian company
rosneft petroleum products from Russia
are brought here
then documents are altered to obscure
the origins and then they're exported to
third-party countries
by rail for example near the harbor we
find wagons which transport the
petroleum products onward
the signs say that they originate in
Moscow and Saint Petersburg with these
Logistics oil products can easily be
transported further
Ireland baldman bjorkvet says that
Russia has generally been very quick to
find ways to export oil in spite of the
sanctions
has been re-flagging of tankers there is
a big Shadow Fleet which consists of
maybe 10 of oil or oil tankers in the
world
so we see unfortunately that Russia is
breaking itself to get access to a to a
shadow Fleet which provides for their
exports our final test
we drive directly to the Russian border
if trickery deceit and smuggling are
even taking place here then it's likely
that turning a Blind Eye Is Happening by
Design
the sheer number of trucks waiting here
seems suspicious to us
this isn't what a drop in exports from
Russia is supposed to look like
how long do you have to wait to get to
the Border
three days
we've been creeping forward for four
days there are more trucks
we'd like to know whether inspections
are stricter since Western sanctions
were imposed
with the Georgians you're done in two
minutes and can drive on
[Music]
nothing has changed it's like it's
always been
it would be possible if the Georgia and
other neighbor countries had a will to
technically control his trade you can
check what is inside the drugs
but I don't expect countries like
Georgia or Kazakhstan or order of
Russia's Neighbors
to actually
control or even limit this train a
further sign of how LAX things are here
is this truck with one license plate
from Russia and one from Lithuania the
driver dismisses it they're only numbers
they're only numbers
we say goodbye to the drivers and make
our way back to the Capitol on our
journey across Georgia we found many
loopholes for circumventing the imposed
sanctions many people profit from The
increased trade volume
but the EU has just approved a further
sanctions package restricting the export
of certain Western exports to third
countries such as Kazakhstan Armenia or
Georgia
um experts like Ireland Bowman bjorkvet
welcome this as it's unlikely Western
companies who profit from the loopholes
would have taken action
I believe many restaurants waters are
aware of what is happening
um because of the magnitude of this
plane
and it is probably up to Western
countries themselves to ensure that the
sanctions are working coefficiently
what's certainly hurting Russia's
economy is that trade via third
countries raises the prices of products
that make it into Russia
and it got less money for its oil
exports when India and China demanded
big discounts riding on the fact that
the number of countries buying Russian
oil is limited
this has affected Russia's national
budget as it relies on the petroleum
business to a great degree and Georgia
the country must decide where it sees
its future if it still wants to join the
EU and NATO it will have to implement
Western sanctions on Russia effectively