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81. American Sanctions and European Sovereignty

Author:
Jean De Ruyt
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
The decision by the United States to withdraw from the “Joint Comprehensive Plan of Action” and re-impose sanctions on Iran broke an international understanding, sanctioned by a UN Security Council Resolution. However, European and other non-US companies dealing with Iran must abide by US law in order to avoid its extra- territorial effects on their US operations. Efforts are being made to help the EU keep its “sovereignty” on sanction issues when there is disagreement with the US, but until now these have not accomplished much. Therefore a new Instrument in Support of Trade Exchanges (INSTEX) was launched at the end of January to ensure the continuation of some trade with Iran. But the only convincing way to allow the EU to increase its autonomy is to boost the role of the Euro in international transactions. Certainly, in today’s unpredictable world, we need more than ever to address the issue of the extraterritorial application of American sanctions – today it is Iran, what if tomorrow it is China?
Topic:
Defense Policy, Nuclear Weapons, Sovereignty, Military Strategy, and Sanctions
Political Geography:
United States, Europe, Iran, Middle East, and North America

82. Hungarian-Russian Economic Relations

Author:
Veronika Jóźwiak
Publication Date:
07-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
Hungarian-Russian economic relations are based on the energy industry. Hungary’s efforts to build closer political relations with Russia after 2010 did not result in a marked increase in bilateral trade, investment, or greater Russian influence outside the energy sector. EU economic sanctions imposed on Russia and the introduction of counter-sanctions in 2014 caused a significant drop in Hungarian exports to Russia. However, this has not resulted in substantial losses to the Hungarian economy.
Topic:
Energy Policy, Bilateral Relations, Sanctions, European Union, and Trade
Political Geography:
Russia, Europe, Eurasia, and Hungary

83. Transatlantic Sanctions Policy : From the 1982 Soviet Gas Pipeline Episode to Today

Author:
Richard Nephew
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Though many commentators have suggested that the Trump administration’s approach with respect to sanctions threats against Europe is “unprecedented,” the relative comity in US-European sanctions policymaking in recent years may be the aberration. The United States and Europe have often disagreed about whether, when, and how to impose sanctions against even common adversaries and in order to resolve mutually recognized problems. One of the most serious examples of this occurred in 1982 when the United States and its European allies broke sharply over the US decision to impose sanctions on the Soviet Union over the crackdown on the Solidarity Movement in Poland. The crisis that emerged tested the NATO Alliance, European governments, and the Reagan administration. This paper reviews the 1982 example and then sets some lessons from it against the current US-European relationship. It offers an assessment not only of the changing political, economic, and social factors that have contributed to greater compliance with US sanctions dictates on the part of Europe over the last few years, but also the relatively brittle nature of this cooperation. It underscores that, though the United States may be in a relatively predominant economic position at present, this situation may not and likely will not persist indefinitely. From this perspective, it concludes with three recommendations for how to modify current US sanctions practice in order to help manage partner concerns and avoid future crises. Adopting a process more akin to the Federal Register notice procedure for new sanctions programs. There is a yawning need for more consultation in advance of US sanctions decisions that could have major market moving and alliance shaking potential. It is not necessary, nor would it be prudent, to have a process that required public scrutiny of individual or entity asset freeze scenarios, but for other, more broad sanctions initiatives, it would help to avoid unintended consequences and ensure a more comprehensive debate. Exceptions could also be made to this rule in the event of a legitimate emergency. Establishing an independent commission to evaluate US sanctions policies and challenges. Congress should set up an independent, bipartisan commission to examine the issue of US sanctions policy now and for the next twenty-five years. Its assignment would be to evaluate how sanctions have been used in the recent past, the international operating environment for sanctions now, and the dimensions of the sanctions policy challenge in the future. Improving congressional oversight of the sanctions process. Congress should also require evaluation reports for individual sanctions regimes as a standard part of the executive branch’s use of the International Emergency Economic Powers Act (IEEPA). Of course, similar requirements ought to be considered a standard part of congressionally mandated sanctions as well.
Topic:
Foreign Policy, Sanctions, and Global Political Economy
Political Geography:
United States and Europe

84. The Sanctions Policy of the European Union: Multilateral Ambitions Versus Power Politics

Author:
Éric-André Martin
Publication Date:
10-2019
Content Type:
Special Report
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Restrictive measures are a major instrument of the European Union (EU)’s external action, which has emerged as one of the world’s leading sanctions emitters. The EU has thus leveraged the size of its market and its economic and financial clout (trade relations, aid policy and bilateral agreements). Through its significant activity in the field of sanctions, the EU has been able to reinforce its image as a normative power and a global player, contributing actively to international peace and stability. The EU’s restrictive measures were adopted in a favorable international context, marked by the legitimacy that was conferred, most of the time, by United Nations resolutions, and by close coordination with the United States (US). This privileged period culminated with the management of the Iranian crisis and the conclusion of the 2015 Vienna Agreement. More recently, however, sanctions have tended to lose their function as an instrument contributing to shape a shared vision of the world order, and to become what they are in essence, namely an instrument of statecraft dedicated to the protection of States’ national interests. This trend is illustrated on the one hand by the affirmation of a unilateral United States policy on sanctions, which tends to extend the scope of coercion to third parties, including European entities, and on the other hand, by the increasing use of sanctions by powers like China and Russia as a geo-economic tool.
Topic:
Sovereignty, Power Politics, Sanctions, and Multilateralism
Political Geography:
China, Europe, Asia, and European Union

85. CHOOSING AN ETHICAL AND EFFECTIVE RESPONSE TO RUSSIAN AGGRESSION IN UKRAINE

Author:
Danielle L. Lupton
Publication Date:
03-2019
Content Type:
Commentary and Analysis
Institution:
Political Violence @ A Glance
Abstract:
It’s been over two months since the crisis between Ukraine and Russia escalated with the Kerch Strait incident in November 2018. Since then, the global news media has devoted little attention to the conflict and references to the dispute from senior American and European policy makers have grown increasingly sparse. Despite an immediate public condemnation of Russia’s actions by the EU and NATO, European and American leaders have yet to coordinate a significant response. In short, the reaction has been underwhelming. This is problematic for three reasons. First, Russia’s latest act of aggression has been interpreted by many as a test of Western resolve and America’s commitment to its European allies. A failure to present a united front carries reputational consequences for the United States, the EU, NATO, and other European powers as well as their leaders. Second, the conflict in Ukraine is ongoing and the humanitarian consequences for civilians of this “forgotten” war—not to mention for Ukrainian democracy itself—are dire. Third, a lack of response to such acts of aggression could further embolden Putin, not just in Ukraine, but also in the Baltics and Eastern Europe.
Topic:
Foreign Policy, Sanctions, Geopolitics, Ethics, Crisis Management, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

86. Hybrid Aggression: A Multi-Pronged Attack

Author:
Yevhen Mahda
Publication Date:
01-2018
Content Type:
Journal Article
Journal:
Warsaw East European Review (WEER)
Institution:
Centre for East European Studies, University of Warsaw
Abstract:
The author tries to show and explain some key features of Russia’s hybrid ag- gression in Europe as a multi-pronged attack. Among them are military challenges, refugee challenges, cultural, informational, gender challenges, the impact on the inner policy of Euro- pean countries. The author also shows possible ways to answer these challenges and counter the aggression.
Topic:
Military Strategy, Sanctions, Agression, and Hybrid Warfare
Political Geography:
Russia and Europe

87. Budgetary Sanctions as a Mechanism to Protect the Rule of Law in the EU

Author:
Marta Makowska and Melchior Szczepanik
Publication Date:
09-2018
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
In the draft multiannual financial framework (MFF) 2021-2027, the European Commission (EC) proposed a political conditionality mechanism through which EU funds could be suspended for countries violating the rule of law. If implemented, it would grant the EC new powers to control the condition of the rule of law in Member States, but it is based on imprecise criteria. Even though the EC has declared that the mechanism is designed to discipline state institutions responsible for breaches, it could be damaging mainly to the final beneficiaries of the funds.
Topic:
Sanctions, Budget, European Union, and Rule of Law
Political Geography:
Europe

88. Filling the Void: How Rouhani’s Government Exploits US Sanctions to Enhance its Position

Author:
FARAS
Publication Date:
11-2018
Content Type:
Commentary and Analysis
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
With the second batch of US sanctions on Iran, coming into effect today, the government of President Hassan Rouhani is taking preemptive measures to strengthen its ability to confront sanctions. It seeks to exploit the sanctions to endorse its candidates for the four ministerial portfolios whose ministers were dismissed in the past months, following a no-confidence vote in the Consultative Assembly.
Topic:
International Relations, Government, Sanctions, Donald Trump, and Hassan Rouhani
Political Geography:
Europe, Iran, Middle East, North America, and United States of America

89. Renewed Differences: Repercussions of the Mounting Tension Between Iran and Europe

Author:
FARAS
Publication Date:
10-2018
Content Type:
Commentary and Analysis
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
Iran is keen to maintain good relations with the European countries at the current stage because they can help it cope with US pressures. These relations gained added importance after the withdrawal of the US from the nuclear deal and the re-imposition of sanctions on Tehran. However, Iran has not changed some elements of its foreign policy, which continually widens the differences between it and European states and may eventually undercut its ability to contain the repercussions of the US sanctions, with the approaching date of the toughest batch of sanctions, set to start on November 5.
Topic:
International Relations, Treaties and Agreements, Sanctions, European Union, and Donald Trump
Political Geography:
Europe, Iran, Middle East, France, and Syria

90. Economic Sanction Games among the US, the EU and Russia: Payoffs and Potential Effects

Author:
Dong Yan and Li Chunding
Publication Date:
07-2018
Content Type:
Working Paper
Abstract:
Economic sanction of the US and EU on Russia because of Ukraine crisis in 2014 lasts for a long time and is still a hot policy topic. This paper uses a 16-country or region numerical general equilibrium model with trade cost and exogenous trade imbalance to explore this three-country economic sanction game payoffs, and simulate the effects of sanctions on individual countries. Our analysis find that all sanction involved countries will be hurt, but comparatively Russia will be hurt more, and the US and EU will be hurt less. Sanction measures of EU have larger impacts to Russia than the US measures, and meanwhile Russian counter-sanction measures will generate larger impacts on the EU than on the US. From the economic perspective, the optimal choice for US and EU is to give up sanction measures to Russia, and retaliation is Russia’s optimal choice when faced with sanction measures. Countries out of the sanction game will gain because of trade diversion effects.
Topic:
Economics, Sanctions, European Union, and Economy
Political Geography:
Russia, Europe, and United States of America