Sanctions have been in place against Russia since Obama’s days….part of the problem, legal problems, with the 2016 election is that Trump organization may have been working to throw out the sanctions…….and then once everyone, except Trump, agreed that Russia interfered with the 2016 elections more sanctions were imposed.
But first a working definition of sanctions…..Sanctions are an important tool of governance in the global financial industry. Most countries have used sanctions or had sanctions placed against either them or their citizens. States increasingly use sanctions to fight economically, rather than physically, and as such, sanctions have become a common tool in foreign relations, peacekeeping and conflict resolution. Given their prevalence, everybody in the financial industry should have a good understanding of what sanctions are, how they work, and why they are used.
This is all information that most international relations wonks know….but now I would like to know…just what these sanctions are actually doing?
On September 20, Washington’s announced new sanctions on 33 Russian individuals or entities for election interference. In addition, America’s November deadline is approaching for Russia to meet Washington’s demands for international inspections and guarantees that Moscow will never use chemical weapons again. Assistant Secretary of State Manisha Singh warned during testimony to Congress on September 13, that without compliance a “severe” “second tranche of sanctions” will be imposed. It is not clear what sanctions are meant to accomplish or whether they are working.
For instance, the September 20 sanctions were a part of the Countering America’s Adversaries Through Sanctions Act (CAATSA). They are meant “to impose costs on Russia in response to its interference in the United States election process, its unacceptable behavior in eastern Ukraine, and other malign activities.” Also, the November deadline and demands were made on August 27 after Russia used the Novichok nerve agent in an attempted assassination of former Russian spy, Sergei Skripal, and his daughter Yulia, in the United Kingdom. In that case, U.S. anti-biochemical weapons law required a response.
I am still working on just what these sanctions do.
Are they, the sanctions, working? What damage are they actually doing? Were they really intended to do any damage to Russia or was it just a show of force…a toothless attempt.