Strategic sanctions are costly foreign policy tools

Subject

Sanctions outlook.

Significance

Economic and financial sanctions are becoming strategic tools for a wide range of international actors. Sanctions can be effective in achieving strategic objectives, but they are not ‘low cost’ foreign policy tools.

Impacts

• Private sector de-risking can push sanctioned economies further towards opaque financial structures.
• Sanctions will be a divisive issue for transatlantic ties.
• Sanctions imposed without a clear objective carry the most risk of backfiring.