Russia’s Financial Sanctions Regime Under Fire as World’s Democracies Impose Swift Punishment

The world’s democracies have launched a barrage of financial and economic countermeasures against Russia in response to its invasion of Ukraine, which began on February 24. The sanctions, imposed by the United States, European Union, United Kingdom, and other governments, target a wide range of Russian government officials, oligarchs, citizens, banks, and corporations.

The Extent and Impact of Sanctions

The scope of the sanctions is staggering, with analysts describing it as “the most comprehensive set of multilateral economic sanctions ever applied to a major global economy.” To understand the extent and potential impact of these sanctions, it is essential to systematically monitor and track them.

A New Tracker for Sanctions Against Russia

To fill this gap, the Leveraging Transparency to Reduce Corruption Initiative at Brookings has launched a new tracker, working with Human Rights First and REDRESS. This tracker consolidates sanctions against Russian individuals and entities into one central repository.

The Value of a Multilateral Approach

A multilateral approach to sanctions is valuable, as each sanction against a corporation or individual adds up, and more countries imposing sanctions against a target can increase the economic impact on that target. Although the sanctions are not fully comprehensive, excluding full European bans related to Russian oil and gas, they are devastating.

Objectives of Sanctions

The objectives of the sanctions include driving Russia to a negotiated resolution of its hostilities.

Challenges in Effectively Sanctioning a Nation

The task of effectively sanctioning a nation as large and interconnected as Russia is difficult, particularly while attempting to protect specific sectors such as energy, food, and remittances for potential victims/refugees. Assessments of sanctions’ effectiveness in prior settings are mixed, and there are substantial concerns about their consequences for civilians.

The Brookings Sanctions Tracker

Our goal is for this tracker to serve as a timely and user-friendly tool for all those who seek to analyze the current landscape of specific restrictive measures imposed against Russia, generate analysis on trends, and inform recommendations on how to combat corruption, advance accountability, and defend democracy.

Fighting Corruption

The sanctions also offer an opportunity to drive forward the fight against corruption, an issue that has long been associated with Putin and his circle. The activities of his family members and affiliated oligarchs and other associates in exploiting Russian natural resources, business opportunities, and other enterprises have loomed large in the international debate over the nature and extent of corruption.

Joining Forces to Defend Ukraine

The United States, European Union, and others have joined forces to help defend Ukraine against Russia through efforts in the economic domain. The Brookings Sanctions Tracker is a tool that maps these developments and can be used by analysts and stakeholders to identify gaps, analyze trends, and make recommendations to hold Russia accountable.

Conclusion

The sanctions imposed on Russia are a significant step towards holding its government accountable for its actions. By tracking these sanctions, we can better understand their impact and work towards a more comprehensive approach to combating corruption and defending democracy.