DOI: https://doi.org/10.33917/es-5.185.2022.22-29

Recently the role of sanction restrictions has sharply increased in the practice of regulating economic relations between countries,

meanwhile their application is determined by many factors. At the same time, in the context of intensifying geopolitical competition and growing volatility of the global economy, the dynamics of sanctions application raises more and more questions. On the one hand, economic sanctions are an instrument of coercion for target countries, and on the other hand they make international exchange and cross-border mobility of the factor more and more vulnerable. Heterogeneous nature of the economic sanctions’ impact on sending and target countries does not allow us to say that sanctions are an unambiguous instrument of an effective trade policy.

This article analyzes the key narratives of economic sanctions regimes in all their diversity at the present stage, new forms and

mechanisms of sanctions, as well as their consequences for various aspects of life of the world community.

References:

1. Spiegelberger W.R. Anatomy of a Muddle: U.S. Sanctions against Rusal and Oleg Deripaska. Russia Political Economy Project, Foreign Policy Research Institute, 2019, April 29, available at: https://www.fpri.org/article/2019/04/anatomy-of-a-muddle-u-s-sanctions-against-rusal-and-oleg-deripaska/

2. Sanger D.E., Benner K., Goldstein V. Huawei and Top Executive Face Criminal Charges in the U.S. New York Times, 2019, January 28, available at: https://www.nytimes.com/2019/01/28/us/politics/meng-wanzhou-huawei-iran.html.

3. Hufbauer G.C., Jung E. What’s new in economic sanctions? European Economic Review, 2020, vol. 130, iss. C, pp. 103572.

4. Bapat N.A., Heinrich T., Kobayashi Y., Morgan T.C. Determinants of Sanctions Effectiveness: Sensitivity Analysis Using New Data. International Interactions, 2013, vol. 39 (1), pp. 9–98.

5. Early B.R., Spice R. Economic Sanctions, International Institutions, and Sanctions Busters: When Does Institutionalized Cooperation Help Sanctioning Efforts? Foreign Policy Analysis, 201, vol. 11 (3), pp. 339–360.

6. Peksen D. Autocracies and Economic Sanctions: The Divergent Impact of Authoritarian Regime Type on Sanctions Success. Defence and Peace Economics, 2017, vol. 30 (3), pp. 253–268.

7. Connolly G.E. Economic Sanctions. Agencies Assess Impacts on Targets, and Studies Suggest Several Factors Contribute to Sanctions’ Effectiveness. Report to Congressional Requesters, GAO-20-145, United States Government Accountability Office (GAO), 2019, October, p. 19.

8. Krustev V.L., Morgan T.C. Ending Economic Coercion: Domestic Politics and International Bargaining. Conflict Management and Peace Science, 2011, vol. 28 (4), pp. 351–376.

9. Nooruddin I., Payton A.L. Dynamics of Influence in International Politics: The ICC, BIAs, and Economic Sanctions. Journal of Peace Research, 2010, vol. 47 (6), pp. 711–721.

10. Golliard M.M. Economic Sanctions: Embargo on Stage. Theory and Empirical Evidence. Fribourg, University of Tampere, 2013, January, pp. 107, 108.

One of the US most important competitive advantages is the ability to carry out multi-way strategic financial transactions allowing to export arising crisis phenomena out of the US economy, providing the stability of proper development. Institutional mechanisms of financial and economic balancing of the US economy form the basis for these operations. With their help logical chain of managerial global iterations is implemented: “formation of the money supply in the US dollars currency” → “manipulating financial flows volumes and directions in the form of real dollars (cash and non-cash) and in the form of derived financial instruments (derivatives etc.)” → “the US possibility to transfer world crises into the format of phased strategic financial transactions in the US interests”.

A new world war for developed countries is a versatile tool solving the problems of the current global financial and economic crisis in the world economy. Under these conditions, the world’s actors, especially the United States, extremely need permanent “enemy-ally”, whose role before was traditionally played by the Russian Empire, later on — the USSR. This explains the feverish attempts by all means to draw Russia into a military conflict in the Ukraine.

The ethical market economy should be based on the following principles: modest growth, stability, care, ability to share, focus on the needs, economic development with a human face and a long-term profit optimization. Under present conditions a balance between government regulation and free market relations is required.