News item | 13-04-2022 | 09:20
Former minister Stef Blok has now been coordinating the Dutch sanctions against President Putin’s Russia for a week. What is he running into? And what does the National Coordinator for Sanctions Compliance and Enforcement actually do? We ask Stef Blok himself.
Minister Hoekstra said in the House of Representatives that you canceled a holiday for this position. Why do you even want to do this?
‘Like many Dutch people, I also just watch television and see the terrible images from Ukraine. That does something to you. And let’s be honest, I’m definitely not alone in this. Many Dutch people are committed to Ukraine, because they are shocked, just like me, by the dramatic images that come in every day.
As a sanctions coordinator, I can help make the Russians feel what they have done. That motivates me even more. I know the ministries involved well and as a former banker I am financially literate. So you have to be in good hands to say no when asked.’
What does your working day as a sanctions coordinator look like?
“There are many questions and concerns about the imposition of sanctions. That is why I and my team sit down every day with the relevant supervisors and ministries.
When necessary, I consult directly with the responsible ministers.
But I also speak a lot with involved organizations outside the government: banks, civil-law notaries, lawyers and trust companies. I hear from them what they encounter when they want to implement sanctions. That knowledge is important to make the sanctions even more effective.’
You’ve been on for a little over a week. What did you notice?
‘I also notice a great willingness in the business community to cooperate with the sanctions. Like everyone else, they see the images from Ukraine and want to do their part, even if it is a hassle and costs money.
But entrepreneurs and financial institutions are confronted with many practical questions. An example is the European list of names of sanctioned companies and persons. The people on that list are very often owners through a variety of intermediary companies.
It can happen that someone owns less than 5% of a company, but still decides what happens. So how exactly do you find out who the real owner is? This requires a lot of research. A problem that all European countries encounter.’
Do you see bottlenecks that you can remove?
“These sanctions are of unprecedented magnitude. It is therefore logical that we encounter new things. Sharing information between government services is one such issue. We have strict privacy legislation in the Netherlands and Europe. It is there for a reason: governments are not allowed to just share information about companies and individuals, explicit permission is required for this.
But if you impose sanctions on a large scale, privacy can actually form a block. That means you have to change the rules. And so we do.
Sometimes we can solve those bottlenecks right away. An example is the exchange of information between the Land Registry and the Chamber of Commerce, which we have now arranged properly.’
How is the Netherlands doing compared to other countries?
‘In the Netherlands we have now frozen between 500 and 600 million in Russian assets. This means we are not at the bottom of the European ranking. Not even at all.
For the few countries that have frozen more, specific circumstances applied. For example, the French central bank had 22 billion euros from the Russian central bank in its account. That was not the case with us.
In the Netherlands, we look very carefully to see whether we have missed companies or persons in the first round of freezes. At the moment we have no concrete indications that this is the case on a large scale. However, the enforcement agencies are re-examining whether there are still companies or persons whose property we can still freeze.’
You have been appointed for a period of 6 weeks. What do you want to have done then?
‘First of all, we provide a clear answer to the question: did we miss something in the original freezing of Russian possessions in the Netherlands? Whatever we can do in the meantime, we’ll do right away.
We also show where changes are needed for the longer term. Think of regulations or the way in which ministries, supervisors and the private sector work together. Because even after my departure, the government and the private sector must be able to find each other well.’