1. Creativity Wanted: Countering the extraterritorial effects of US sanctions
- Author:
- Clara Portela
- Publication Date:
- 10-2021
- Content Type:
- Policy Brief
- Institution:
- European Union Institute for Security Studies
- Abstract:
- Scarcely familiar with sanctions as a policy tool, much of the European public has followed the headlines about international sanctions with some puzzlement. After the UN lifted sanctions on Iran following the conclusion of the Joint Comprehensive Plan of Action (JCPOA), why was it necessary to create a channel for bilateral trade, the Instrument in Support of Trade Exchanges (INSTEX), following the US withdrawal from the deal in 2018? Why is Iran insisting that the US lift sanctions ‘in practice, not verbally or on paper’? How did the US Senate approval of new legislation targeting Nord Stream 2, a pipeline under construction between Russia and Germany, bring work to an immediate standstill in late 2019? Why do European banks and private companies fear the US Department of the Treasury’s sanctions enforcement agency, the Office of Foreign Assets Control (OFAC)? If sanctions regimes are endowed with humanitarian exemptions, why do humanitarian agencies report difficulties in getting aid to places like Syria ? As it turns out, these are ramifications of the same phenomenon: the extraterritorial effects of US sanctions. The present Brief examines these effects, describing why they pose a challenge to the EU. It then outlines the responses that have been activated or are being contemplated to counter them, explaining why an effective remedy remains elusive. The Brief concludes by indicating possible ways forward.
- Topic:
- Humanitarian Aid, United Nations, Sanctions, and Transnational Actors
- Political Geography:
- Iran, Middle East, Syria, and North America