Sanctions Regime Research Articles

Внешняя торговля России в условиях санкционного давления

The article discusses the specifics of the development of Russia’s foreign trade in the new realities, formed, on the one hand, by the unprecedented sanctions regime against the Russian economy, and, on the other hand, by a sharp increase in prices on world commodity markets in the context of increased geopolitical uncertainty, which allows Russia to financially compensate for the decline in physical volumes of export deliveries. The nature of the sanctions imposed against Russia and their impact on the dynamics of its exports and imports and the conjuncture of world commodity markets are analyzed. The concept of "trap of a big country" is introduced in relation to anti- Russian sanctions. An assessment of the results of Russia’s foreign trade in January–May 2022 is given and brief proposals for improving of Russia’s foreign trade policy are made. The conclusion is made about the resistance of the cost volumes of Russian exports to sanctions pressure and the need for a foreign trade policy aimed at comprehensive support of imports necessary for the functioning of the domestic economy in the short term.

The role of US financial institutions in the international economic sanctions mechanism

The scope of the sanctions regime imposed by the United States against countries and entities has expanded with the imposition of the Office of Foreign Assets Control of the US Department of the Treasury (OFAC), and the impact of these sanctions imposed by the United States made a clear challenge, as it prevented countries, entities and individuals from formally accessing global financial networks, which led to Vibration of financial systems and threatening the economic system of countries and entities, which achieves American hegemony without returning to the use of international law and the use of the UN Security Council, which caused the decline of the influence of the international authority represented by the United Nations.

The Awakening of the Sleepy European Union: The Enigmatic Role of the EU Sanctioning System Against China

This paper aims at giving useful hints to understand the European hesitation to deliberately take a side in the debated odi et amo relationship between the Western countries (in particular the US) and the People’s Republic of China, including the special administrative region of Hong Kong. It is a matter of fact that the EU has always been excellent with its dialectic showing pure resentment towards the autonomy dismantlement in Hong Kong, but it ended to be a mere “spectator”. However, for the first time in 30 years, the EU seems to have acknowledged its “responsibilities” with the adoption of the Global Human Rights Sanctions Regime (GHRSR), a bell that, in metaphorical terms, seems to have woken up the Union. A Union now more willing to adopt restrictive measures in the promotion of human rights also against its economic partners.

The EU Global Human Rights Sanctions Regime: between Self Help and Global Governance

Abstract By adopting a Global Human Rights Sanctions regime, the European Union took a new step in leveraging its power to respond to human rights violations globally. The regime has a general scope, and targets both state and non-state actors. This paper shows that this regime occupies a tension zone between two competing approaches to sanctions: a self-help approach that perceives sanctions as deriving authority from states’ sovereignty and subservient to their foreign policy, and a global governance approach that views sanctions as deriving authority from and bound by the objectives of specific international legal regimes they enforce. The tension between these approaches comes into stark view when constructing the listing criteria and policy objectives of the sanctions, which determine the scope of targets and duration of measures. Whether and how subsequent practice resolves this tension will be determined by certain legislative and interpretive moves by the EU Council and Court.

Global sanctions against corruption and asset recovery: a European approach

PurposeThis paper aims to critically examine whether it is timely and actionable for the European Union (EU) to adopt a global sanctions regime against corruption and how such a regime can be designed to maximise its efficiency. This paper argues that developing such a dedicated framework is necessary, feasible and supportive of the international fight against corruption and the efforts to enhance the recovery of corruption proceeds.Design/methodology/approachThis paper draws on reports, legislations, legal scholarships and other open-source data on global sanctions against corruption and the recovery of corruption proceeds.FindingsThis paper argues in favour of a dedicated global sanctions regime against corruption, which is necessary to mitigate significant risks for the EU internal market.Originality/valueTo the best of the authors’ knowledge, this study is one of the first to examine recent legislative developments, such as the EU Global Human Rights Sanctions Regime and the UK Global Anti-Corruption Sanctions Regulations, and the possible development of an EU-dedicated global sanctions regime against corruption with strong asset recovery components.

Rewards Versus Sanctions in International Relations: A Game-Theoretic Analysis of Bluffing

ABSTRACT I use game-theoretic models to compare a sender's expected payoff across two methods of wielding influence under asymmetric information: offering rewards and threatening sanctions. Attempts to influence the actions of another can have the perverse effect of actually encouraging the behavior that one is trying to discourage by creating incentives to bluff, which may differ across foreign policy regimes. Under a reward regime, targets can bluff to extort larger inducements. Under a sanction regime, targets can bluff to deter coercion attempts. I find that while sanctions are a weakly dominant tool of influence under complete information, rewards can be preferable under incomplete information. Specifically, the sender finds promises more beneficial than threats if she expects that (i) coercion would likely fail and (ii) her willingness to offer bribes would not get exploited by the target. I examine the United States' foreign policy reversal from punishments to inducements towards North Korea during the nuclear crisis of 1993--4 to illustrate these theoretical propositions.

The Sanction Regime in the 2010 Electoral Act and Recurring Infractions in the Electoral Process in Nigeria

The article relies on the theory of post-colonial states and argues that the nominal penalties prescribed for electoral offences in the 2010 Electoral Act largely accounts for the recurring infractions in the electoral process in Nigeria. This view was premised on the lack of deterrence purposes by those penalties, as politicians prefer serving out the penalties in as much as indulgence in electoral fraud guarantees electoral victory. The documentary method and content analysis were employed for data collection and analysis, respectively. The findings indicate that those penalties were incommensurate with the gravity of the electoral offences and the benefits of holding public offices acquired through indulgence in fraud. The article recommends drastic cut in the benefits accruable to public offices as disincentive for political desperadoes, who perceive such positions as lucrative ventures that must be ascended at all cost, given that such mind set predisposes them to engage in electoral fraud.

China Looks at the Korean Peninsula: The ‘Two Transitions’

There are two power transitions under way on the Korean Peninsula. Firstly, there is a US–China power transition, reflecting China’s emergence as an economic and military power in Northeast Asia. This is challenging US regional dominance. The second transition reflects South Korea’s development of an independent defence capability against North Korea. A consensus has emerged among Chinese scholars and analysts in government think tanks that these two trends have encouraged South Korea to place itself at greater distance from the United States and China, and to pursue an independent policy toward North Korea that supports Chinese policy preferences. Chinese understanding of the dual power transition is reflected in Beijing’s policies toward South Korea, North Korea and denuclearisation. China no longer contributes to North Korea’s diplomatic isolation or to sanctions regimes against it, with implications for US policy.

Peculiarities of using tax compliance tools at enterprises engaged in foreign economic activities

Introduction. It is established that unpredictability of the external environment, complicating the structure of operational, financial, investment processes, necessity of functioning under the sanctions regime and the growing risks of cyber fraud actualize the question of using tax compliance at enterprises, the subjects of foreign economic activities (FEA). International and national theorists and practitioners think the system of compliance control is an effective alternative to further complicating and increasing the number of regulatory and non-regulatory acts in the field of control over the activities of the organization. Purpose. The legislator makes attempts to stimulate law-abiding behavior of the participants of FEA, gives “white” companies significant advantages. Foreign trade organizations also have interest in reduction of costs, related to the interaction with public authorities. It is found that meeting the expectations of both legal entities and the state contributes to the fundamentalization of the compliance control system. Classification of FEA participants takes place considering their tax and customs reputation. It is resumed, that such classification is necessary for providing maximum customs simplifications for conscientious FEA participants (granting the status of an authorized economic operator). Results. The process of implementation of compliance control over the FEA participants is considered as a way to get gain the trust of control and supervisory authorities, ability of company to get on the ”white” lists of customs authorities, thereby increasing the efficiency of customs operations. It is summarized that constant changes in legal regulation, growing the role of reputation and significant number of cases of fraud on the part of counterparties necessitate the introduction of the compliance control system in the activities of organizations engaged in FEA. The mentioned system of control allows the FEA entites to buy significant benefits, especially in the conditions of intense competition with analogic organizations in the member states of the European Union. Conclusion. The effects for FEA participants from tax compliance have been identified as follows: implementation of customs operations in as much as possible short terms and with minimum expenses; minimization of costs for the implementation of customs operations while ensuring the rules established by customs legislation; obtaining the status of a law-abiding FEA participant; reduction of risks arising from the implementation of FEA; reducing the number of inspections by supervisory authorities; emergence of a single standard of implementation of FEA; application of electronic methods for declaring goods.

Russia and Sanctions: The Transformational Domestic and International Effects of Unilateral Restrictive Measures

Abstract Most studies of the US, EU and Ukraine’s sanctions against Russia and Russian counter sanctions focus on their immediate and intended effects and apply these to make judgements about their efficacy. However, the complex consequences of sanctions go far beyond the target countries’ immediate reactions, as sanctions have positive and negative spillover effects that are rarely acknowledged in official discourse, which focuses on issues of the sanction regimes’ legitimacy and effectiveness. Vulnerability to sanctions leads target countries to reposition their domestic and international priorities. This article will examine three critical ‘collateral effects’ of Western sanctions and Russian counter sanctions. First, they serve as a catalyst for Moscow’s efforts to diversify economic relationship through international projects such as the EAEU, BRICS, and the “Pivot to the East.” Second, they have triggered more risk-sensitive policies in the provision of national economic security, particularly when it comes to finance. Finally, they serve as a transformational tool for national development strategies both at the industrial and regional levels.

Feeble rules: one dual-use sanctions regime, multiple ways of implementation and application?

ABSTRACT Export controls of dual-use products and sanctions on respective items are highly regulated in the European Union (EU). However, we find multiple instances of implementation and application problems of dual-use control in the Member States. To explain this puzzling observation, we investigate the relationship between the institutional design of sanctions and their subsequent implementation and application. Drawing on rational design theory, we argue that even if coherence is the EU’s stated goal, the institutional design of the current dual-use export control regime is inadequate to provide for coherence. National licensing decisions and a constant need for the interpretation of contingent rules in the implementation and application of dual-use sanctions are structural challenges to establish a coherent European policy. The relationship between institutional design and coherence, which we investigate in the context of sanctions, is not specific to the EU. Instead, we offer a novel conceptual and analytical tool to study the expected degree and causes of (in-)coherence in the implementation and application of any regime of international sanctions.

ВНЕШНЕТОРГОВАЯ ДЕЯТЕЛЬНОСТЬ КАК ИНСТРУМЕНТ ВЛИЯНИЯ НА СОЦИАЛЬНО-ЭКОНОМИЧЕСКОЕ ПОЛОЖЕНИЕ ГОСУДАРСТВА: РЕГИОНАЛЬНЫЙ АСПЕКТ

The theoretical prerequisites for the formation and development of the region's foreign trade activity are analyzed, its importance in ensuring socio-economic stability is noted. The authors agree that the sanctions regimes implemented by a number of foreign states, primarily the United States, by the countries of the European Union, have negative consequences, both in relation to Russia and for themselves. The impact of restrictive measures has been noted as part of the coronavirus restrictions. Thus, the authors note the emergence of possible imbalances in export-import operations, and also come to the conclusion about the imperfection of the applied models of foreign trade activity, expressed in the ongoing trade in raw materials and goods with low added value. The region under study was the Stavropol Territory, which has the most pronounced export specialization among the subjects of the North Caucasus Federal District. The analysis of trade operations in the region highlighted the existing contradiction, which consists in the growth of prices in the domestic market for groups of goods, whose export volumes tend to grow. This circumstance should act as a signal for regional authorities in matters of regulating the balance of ensuring food security.

What Is the Added Value of the EU Global Human Rights Sanctions Regime?

The European Union’s Global Human Rights Sanctions Regime (EUGHRSR), adopted in December 2020, is expected to augment the Union’s role in global normative diplomacy. Although the Council has a long history of responding to human rights violations through geographic sanctions regimes, the EUGHRSR is the first thematic sanctions regime on the topic with a general scope of applicability. This article investigates what distinctive added value the thematic design of the EUGHRSR brings compared to the longstanding geographic approach. The EUGHRSR is envisaged as a more legalized accountability mechanism and its added value is presumed to lie in helping depoliticize sanctions by shifting the target focus away from states. The article shows that this presumption can be unattainable or undesirable as the successful implementation of the EUGHRSR necessitates bringing the state into the centre of analysis. The article in particular shows that in order to successfully deploy the EUGHRSR as an integral part of the EU common foreign and security policy, the Council has to (i) align the designation of targets with the EU’s foreign policy strategies, and (ii) take pro-human rights reforms in third countries as a ground for de-listing, even in the absence of individual accountability. Taking these positions, however, blurs the line between the EUGHRSR and geographic sanctions, therefore requires careful coordination and trade-off. damages, non-contractual liability, CFSP acts, normalization, CSDP missions and operations, restrictive measures, jurisdiction, CJEU, sanctions.

The Reformed EU Human Rights Sanctions Regime: A Step Forward or an Empty Threat?

Human dignity, effective human rights protection and the rule of law are the backbones of the legal system of the European Union (EU).1 The EU and its member states have been front-runners in human rights protection not only on its own territory, but also beyond in their relationship with third countries. They have been the principal standard-setters in the field of business and human rights (BHR). The majority of the EU member states (15 out of 27) have so far adopted National Action Plans on Business and Human Rights.2 As far as legislative action goes, the EU has in recent years adopted two binding legal acts in the BHR field, namely, a Directive requiring obligatory non-financial reporting for large corporations3 and a Regulation concerning mandatory due diligence for the EU-based importers of minerals and metals from conflict-ridden areas.4 More recently, the European Parliament and the European Commission have been working towards adoption of a general directive for obligatory human rights and environmental due diligence for large corporations.5

Guilty Until Proven Innocent? The EU Global Human Rights Sanctions Regime’s Potential Reversal of the Burden of Proof

Abstract This article explores the extent to which the European Global Human Rights Sanctions Regime (eughrsr) should be deemed to contain punitive elements, and if such elements do exist, how the principle of presumption of innocence should be applied to the targeted entity. Taking into account the Engel-criteria, literature research and existing national human rights sanctions regimes, we claim that under specific circumstances the Regime could be considered punitive, and argue that in such situations, certain safeguards with regard to the burden of proof require additional attention.

ОЦЕНКА РЕАЛИЗАЦИИ МЕР ГОСУДАРСТВЕННОЙ ПОДДЕРЖКИ ИПОТЕЧНОГО ЖИЛИЩНОГО КРЕДИТОВАНИЯ В СОВРЕМЕННЫХ УСЛОВИЯХ

The system of mortgage housing lending is one of the main mechanisms that allow citizens with medium and low incomes to purchase their own housing. Currently, the housing mortgage lending system operates in difficult socio-economic conditions due to the long-term sanctions regime and the COVID-19 pandemic. In this regard, state support programs for housing mortgage lending expand the opportunities and accessibility of obtaining mortgage loans for certain categories of citizens. The article examines the main measures of state support for mortgage housing lending in modern conditions, assesses their effectiveness, identifies problems and suggests possible ways to solve them.

EU global human rights sanctions regime: is the genie out of the bottle?

ABSTRACT On 7 December 2020, the EU Foreign Affairs Council adopted an ‘EU Global Human Rights Sanctions Regime’ (EU HRSR). The EU HRSR is an example of a transnational response to a fundamental security-related challenge. Both its adoption and its specific institutional set-up are a continuation of the move towards stronger supranational practices in the area of sanctions. Further supranationalising the EU’s sanctioning practices, as one of its most developed and most powerful tools to response to security threats, is likely to increase the uniformity, flexibility, and arguably also the impartiality of the sanctions. At the same time, the adoption process also demonstrated that national governments set limits to further supranationalisation. While in particular the Dutch parliament was a driving force behind the adoption of the EU HRSR, both national parliaments and the European Parliament are likely to struggle to have significant influence over the sanctioning process. Yet, much depends on the actual sanctioning practices and the legal framing of the EU HRSR’s objectives, designation criteria and evidentiary threshold may in practice raise legitimacy problems.

Non-market Strategies in Response to Political Disruption of International Business Ties

This study contributes to research on international targeted sanctions and their measurable effects. We investigate how targeted sanctions affect Russian companies and individuals. Our study methods are combination of quantitative analysis on measurable sanctions effects on turnover, assets, liquidity, and employment. What we find is short-term indeterminate negative financial effects on targeted sanctioned firms that dissipate over time. To further explore how sanctioned companies are shielded and use adaptation strategies to overcome sanction we examine case studies of sanctioned firms. Our analysis indicates that sanctioned firms adapt to sanction regimes and undermine the economic impact of these targeted sanctions. The implications of this research are that while target sanctions create symbolic meaning in foreign relations and create financial friction for targeted firms and individual there exist adaptation strategies that negate the economic impact of these sanctions. Sanctioned Russian individuals and firms seem to have restructured their international holdings subject to sanctions to avoid the negative impacts of these sanctions.

Internalizing External Conflicts: Thick Skin in the Face of Economic Sanctions and a Pandemic

Economic sanctions regimes have played and continue to play a significant role in the geopolitics of recent years. Sanctions are designed to punish by isolation, economic pressure, and severe trade and service restrictions. This research presents a case for the importance of examining the role of economic sanctions for organizations, particularly employee behavior. Borrowing from the literature in international relations, international law, and political science, the paper provides background regarding how economic sanctions actually work in international relations. It analyzes the micro impact of economic sanctions as it creates ontological insecurity for the target population. The paper utilizes novel data from sanctioned and non-sanctioned countries during the Covid-19 pandemic. The results indicate significant differences in performance, work engagement, ethical behavior, affect, and work climate. Specifically, individuals from the sanctioned country, compared to individuals from non-sanctioned countries, demonstrated more resiliency during distress. Despite a harsher work environment, they demonstrated less negative emotions, more ethical behavior, better work engagement, and consistent performance. The paper concludes by furnishing a new theory—ontological resiliency—and proposing new solutions to the underlying problem of lack of resiliency.

The effect of expert recommendations on intergovernmental decision-making: North Korea, Iran, and non-proliferation sanctions in the Security Council

The article explores whether and to what extent expert recommendations affect decision-making within the Security Council and its North Korea and Iran sanctions regimes. The article first develops a rationalist theoretical argument to show why making many second-stage decisions, such as determining lists of items under export restrictions, subjects Security Council members to repeating coordination situations. Expert recommendations may provide focal point solutions to coordination problems, even when interests diverge and preferences remain stable. Empirically, the article first explores whether expert recommendations affected decision-making on commodity sanctions imposed on North Korea. Council members heavily relied on recommended export trigger lists as focal points, solving a divisive conflict among great powers. Second, the article explores whether expert recommendations affected the designation of sanctions violators in the Iran sanctions regime. Council members designated individuals and entities following expert recommendations as focal points, despite conflicting interests among great powers. The article concludes that expert recommendations are an additional means of influence in Security Council decision-making and seem relevant for second-stage decision-making among great powers in other international organisations.