Monitoring Sanctions Developments and Easing
Economic sanctions have become one of the most common tools used by governments to respond to foreign policy challenges, according to the Council on Foreign Relations[1]. Sanctions can include travel bans, asset freezes, arms embargoes, and trade restrictions. While sanctions are generally seen as a lower-risk alternative to military action, their effectiveness is debated.
Over the past year, there have been major developments in the use of sanctions, especially against Russia. The U.S. and its allies imposed sweeping sanctions on Russia following its invasion of Ukraine, targeting major sectors of Russia’s economy. According to Gibson Dunn, 2022 saw record numbers of individuals and entities added to sanctions lists[2].
This article will provide an overview of recent sanctions developments, including:
- U.S. sanctions on Russia
- Easing of sanctions on Syria
- Best practices in sanctions policy
- Potential implications and debates around sanctions
Contents
U.S. Sanctions on Russia
In response to Russia’s invasion of Ukraine, the U.S. and its allies imposed extensive sanctions targeting Russia’s economy, political elite, and military capabilities[3]. Key elements of these sanctions include:
Comprehensive Sanctions on Occupied Regions of Ukraine
The U.S. imposed comprehensive sanctions on the so-called Donetsk and Luhansk People’s Republics, as well as Russian-occupied areas of Ukraine such as Kherson and Zaporizhzhia. These measures prohibit trade and financial transactions with these regions[2].
Sectoral Sanctions
Sectoral sanctions restrict access to U.S. financing for key Russian economic sectors like energy, defense, and finance. Major Russian banks and companies in these sectors have been targeted[3].
Blocking Sanctions
Hundreds of Russian entities and individuals linked to the Kremlin have had their U.S. assets frozen or blocked. Russian elites close to Putin have been sanctioned[2].
Export Controls
Sweeping export controls restrict Russia’s access to U.S. and foreign-produced items, from commercial electronics to oil refining equipment. Controls on semiconductors and other technologies are aimed at undermining Russia’s defense, aerospace, and maritime capabilities[2].
Energy Sanctions
Russian energy exports have been targeted through bans on U.S. purchases of Russian oil, liquefied natural gas, and coal. Restrictions have also been placed on energy-related equipment and services[2].
Financial Measures
Sanctions have cut off many Russian banks from the SWIFT financial messaging system. Restrictions have been placed on Russia’s ability to access its overseas reserves and on provision of accounting, trust, and consulting services[2].
Crypto/Virtual Currencies
Sanctions also target Russia’s ability to use crypto/virtual currencies to circumvent other financial sanctions[2].
These sweeping sanctions on Russia are unprecedented in scale and scope, essentially aiming to disconnect Russia from the global economy. Their impact has been significant, with Russian GDP projected to contract severely and inflation spiking[2].
Easing of Sanctions on Syria
In contrast to the sanctions on Russia, some countries have moved to ease sanctions on Syria in recent years. In June 2013, the Obama administration took steps to allow for greater economic activity in opposition-controlled areas of Syria, to enable relief efforts[6]. Measures included:
- Allowing export of certain U.S.-origin items for the benefit of the Syrian people
- Authorizing U.S. persons to engage in transactions involving areas under opposition control
- Expanding humanitarian assistance
The easing of sanctions was aimed at supporting opposition groups and civilians in Syria, while maintaining pressure on the Assad regime. However, the civil war in Syria continues to rage on.
Best Practices in Sanctions Policy
Experts have proposed several best practices when developing sanctions policy[1]:
- Employ sanctions as part of a broader foreign policy strategy that utilizes other tools as well
- Clearly communicate the conduct being targeted and requirements for lifting sanctions
- Develop multilateral sanctions with allies to increase leverage
- Consider unintended humanitarian impacts and prepare relief measures
- Continually evaluate effectiveness and be prepared to modify policies
Following these best practices may increase the chances sanctions achieve their goals and avoid unintended consequences.
Debates Around Sanctions
There are vigorous debates around the use and impact of sanctions:
Effectiveness
Research suggests that sanctions achieve their stated goals only about one-third of the time[1]. Critics argue sanctions often fail to change state behavior and inflict economic harm on civilians. Supporters claim sanctions have become more effective with better design and implementation.
Alternatives
Some argue sanctions should be used only as a last resort when other options like diplomacy fail. Others contend sanctions are an important alternative to military action.
Unintended Consequences
There are concerns that broad sanctions can trigger humanitarian crises, strengthen authoritarian regimes, and alienate civilian populations. Policymakers must weigh these risks.
Enforcement
Effective sanctions require investment in enforcement tools. Lax oversight risks undermining sanctions through black markets and workarounds.
Debates around sanctions will likely continue, underscoring the need for caution and strategic thinking when imposing sanctions.
Conclusion
Recent years have seen both extensive sanctions on Russia and easing of sanctions on Syria. While sanctions remain an important foreign policy tool, experts recommend following best practices around multilateral coordination, humanitarian exemptions, and continual reevaluation. Ongoing debates highlight that sanctions involve difficult tradeoffs and uncertainties. Policymakers should carefully weigh these when considering or modifying sanctions programs.
References
[1] Council on Foreign Relations
[2] Gibson Dunn
[3] Reuters