Industry insiders have said that the sanctions set on Russia in relation to its conflict with the Ukraine are having a knock on effect for the attractions sector, hampering deals due to 'military' implications.
The trade restrictions are the toughest imposed on Russia since the cold war and mean a lot more paperwork is included for simple imports to the country, while objects such as communication devices are regularly flagged as having “military implications.”
The European Union (EU) and the US have imposed co-ordinated sanctions against Russia, which targets certain sectors of the Russian economy, namely Russia’s access to EU capital markets, the import and export of items for military use and an arms embargo on the import and export of all goods and technology listed on the EU Common Military List.
The sanctions have been put in place in an attempt to strangle the Russian economy and convince President Vladimir Putin to abandon his support for the separatists in Ukraine.
The main issue facing the attractions industry, which uses a lot of cutting-edge technology to create top quality visitor experiences, is the ruling that no EU or US national or company may sell, supply, transfer, or export any dual-use goods and technology (i.e., goods that have a civilian or military application) to any individual or entity in Russia, if those goods are or may be intended to be used for a military purpose or by a military end-user. Put simply, if something can be used as a weapon then it could well be affected by the trade sanction.
High-end technology, which could in theory be used for military purposes, such as broadcast devices, wireless receivers used to relay data and filming equipment, among other similar technology comes up against the sanctions. But even things such as simple computer chips can be blocked on military grounds as well.
A source told
AM2: “It’s less about the sanctions themselves, more about the technology which they are restricting, because it’s so far reaching as to what can be used for military gain despite the fact these things will never leave the museum, science centre or whatever visitor attraction they may end up in.”
The embargo will not apply to contracts signed before the start of these sanctions, but new deals – including any additional purchases made on already planned attractions – will have to go through an extremely strict vetting process in order to make it across the Russian border.
