- The Russian economy adjusted to the sanctions by increasing commerce with nations that were not enforcing them and by whenever possible promoting home-grown goods as import alternatives.
- Russia expanded its crude oil shipments to China and India while reducing its dependency on Russian gas purchases by the European Union.
Background
Sanctions are coercive actions that can be used to influence international relations in the areas of geopolitics, commerce, culture and diplomacy. They are typically non-military and can be imposed unilaterally (by one state against another) or collectively (by an international body like the UN).[1] These sanctions are either comprehensive (include broad-based trade restrictions and prohibit commercial activity with an entire country[2]) or targeted at specific entities or items ex: oil, diamonds etc. A Collective sanction can be placed by international bodies such as the UN, EU and NATO. In the United Nations organization, UNSC is the sub-organ with the power to implement sanctions by Chapter VII of the United Nations Charter, to preserve or re-establish global peace and security. Concerning Article 41, sanctions procedures cover a wide range of non-violent enforcement tools. These non-military sanctions are of 4 types at present:
Firstly Diplomatic Sanctions: Breaking all diplomatic conventions, including those relating to councils, embassies, and cooperative cultural activities, is a diplomatic termination of cooperation.
Ex: In response to the Uyghur genocide, human rights violations in Hong Kong and Tibet, military-civilian fusion, and support for the Russian invasion of Ukraine, the US levied sanctions and visa restrictions against several Chinese government officials and companies.
Secondly Economic Sanctions: economic trade restrictions and obstacles, such as higher costs in some industries like food, weaponry, pharmaceuticals, etc.; freezing of financial assets, limiting the operational functions of respective countries’ banks.
Ex: The central bank of Russia’s assets have been blocked in the United States, the United Kingdom, Canada, and the European Union (EU).[3]
Thirdly Travel Sanctions: Travel There are several limits on travel, ranging from a complete ban for all citizens of a nation, a ban on transiting through its boundaries, a ban on visiting rebel-held areas within a nation, to an aviation ban on all flights into or out of a nation, etc.
Ex: Travel/entry ban on registered/ identified members of Al Qaida.
Fourthly Sports Sanctions: Sports sanctions ban a nation’s athletes from taking part in competitions abroad.
Ex: according to the International Olympic Committee Athletes who are employed by the armed forces or national security organisations of Russia or Belarus are ineligible to compete. No support staff employed by the armed forces or national security organisations of Russia or Belarus may enter.[4]
The actions outlined try to accomplish three goals: altering undesired behaviour (such as human rights breaches), reducing possibilities for such behaviour, and discouraging other nations from doing negative actions. Overall, these actions aim to promote global cooperation, peace, stability, and respect for human rights through non–military methods.
Sanction on Russia concerning the Ukraine Crisis 2022
In reaction to the ongoing conflict in Ukraine, sanctions were put in place against Russia in 2022. When Russia took Crimea in 2014, the battle started, and it later turned into a full-fledged war in eastern Ukraine. Russia’s actions were denounced by the international community, notably the US and EU, who also imposed sanctions to show their disapproval and put pressure on Russia to behave differently.
According to Statista, the sanctions placed on Russia are:
Finance and Services Restriction
- Sberbank and ten other Russian banks have been blocked from using the international financial messaging system SWIFT.
- The assets of the Central Bank have been frozen.
- The European Union (EU) has outlawed the provision of certain services to Russia, including cryptocurrency accounts, IT consulting, and credit rating.
- Both the EU and the US have barred investment in Russia’s energy industry, and the EU has also barred investment in mining and quarrying.
- Asset freezes and travel bans have been imposed on about 9,000 individuals and 1,800 businesses.
Trade Policies
- The Group of Seven (G7) has imposed a price restriction on Russian crude oil and refined products, while the EU has prohibited most refined products, seaborne crude oil, and coal imports. Russian fossil fuels are outlawed in the United States.
- Germany has halted the Nord Stream 2 gas pipeline certification procedure.
- Russian gold imports have been prohibited by the G7, the US, and the EU. Although the US has banned Russian diamonds, the EU, notably Belgium, continues to import them.
- High-tech commodities with military applications, such as chips and aircraft components, have been banned from export.
- Export restrictions apply to luxury apparel, automobiles, and pieces of art.
Transportation Measures
- Russian aircraft cannot fly in the airspace.
- It is forbidden for ships flying the Russian flag to enter ports in the EU.
Additional measures
- At the World Trade Organisation (WTO), Russia no longer qualifies as a Most Favoured Nation (MFN).
- The Baltic States, Poland, and Finland have all imposed entry restrictions on Russians; as a result, there has been a noticeable rise in border crossings into Finland since Russia’s mobilisation declaration.
- State-sponsored media organisations RT and Sputnik are prohibited in the EU.
- The participation of Russia in several cultural and sporting events, including the Eurovision Song Contest and UEFA and FIFA championships, has been suspended.
Conclusion
The Russian economy adjusted to the sanctions by increasing commerce with nations that were not enforcing them and by whenever possible promoting home-grown goods as import alternatives. Russia expanded its crude oil shipments to China and India while reducing its dependency on Russian gas purchases by the European Union. Notably, the asset prices of many well-known Russian billionaires, like Vagit Alekperov, the former president of Lukoil, and Alexey Mordashov, the chairman of Severstal, declined. Inflation and the exodus of large Western corporations from Russia, which affected the economy, were the main issues faced by consumers.
In Dursun Peksen’s paper titled “Socio-Economic and Political Consequences of Economic Sanctions for Target and Third-Party Countries,”[5] which explores the impact of economic sanctions, it is revealed that such sanctions have a success rate of only 5-35% in achieving their intended objectives. The paper highlights that these sanctions often have unintended negative consequences, as they not only fail to promote human rights, democracy, and press freedom but also contribute to an increase in gender-specific violence, civil unrest, and overall violence. Furthermore, the paper points out that the elites in the targeted countries often redirect their resources and services to non-sanctioning countries, leaving the burden of these sanctions on business entities and civilians, including the Russian population, who are not the primary target of the sanctions. Hence to reduce suffering among civilians and improve the effectiveness of economic penalties, targeted and clever sanctions might be used.
(Maansi N. A is a Research Scholar in the Department of International Relations, Peace and Public Policy (IRP and PP), St Joseph’s University, Bengaluru. Dr Karamala Areesh Kumar is the Head of the Department of International Relations, Peace and Public Policy (IRP and PP), St Joseph’s University, Bengaluru).
References:
[1] What are sanctions, do they ever work – and could they stop Russia’s invasion of Ukraine? (n.d.). Australian Human Rights Institute. https://www.humanrights.unsw.edu.au/research/commentary/what-are-sanctions-do-they-ever-work-and-could-they-stop-russias-invasion-ukraine
[2] United States Government Accountability Office. (2019). ECONOMIC SANCTIONS Agencies Assess Impacts on Targets, and Studies Suggest Several Factors Contribute to Sanctions’ Effectiveness. Report to Congressional Requesters, 4.
[3] BBC News. (2023, May 25). What are the sanctions on Russia and are they hurting its economy? BBC News. https://www.bbc.com/news/world-europe-60125659.
[4] Ioc. (2023, May 24). Q&A regarding the participation of athletes with a Russian or Belarusian passport in international competitions. International Olympic Committee. https://olympics.com/ioc/news/q-a-on-solidarity-with-ukraine-sanctions-against-russia-and-belarus-and-the-status-of-athletes-from-these-countries.
[5] Peksen, D. (2009). Better or Worse? The Effect of Economic Sanctions on Human Rights. Journal of Peace Research, 46(1), 59–77. http://www.jstor.org/stable/27640799.
Aayush Pal 
Sindhuri Sai 
Parag Gilada