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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHow the West Undermines Its Own Sanctions
The Western sanctions in response to Russias invasion of Ukraine have been far broader than many experts anticipated. But theres a catch.https://www.theatlantic.com/ideas/archive/2022/03/russia-oligarchs-evade-sanctions-anonymous/626968/
As Russian troops bulldoze and bludgeon Ukraine, the West has begun implementing one of the few tools in its arsenal: sanctions. The United States blacklisted multiple Russian oligarchs and banks, and the United Kingdom followed suit by blocking Russian banks and barring Russian companies from raising money on British markets. The European Union issued what its foreign-policy chief, Josep Borrell, dubbed the harshest package of sanctions in the blocs history, targeting energy, trade, and a group of Russian oligarchs long thought untouchable.
The Western response has been far broader than most experts anticipated, and threatens to throw the Russian economy into chaos. Yet theres a catch. Absent significant domestic reforms in the Westreforms that should have been enacted long agosanctions targeted at the oligarchic and official figures close to Russian President Vladmir Putin risk inflicting little more than a flesh wound on Russias imperial kleptocracy.
Rampant financial anonymity in places like the U.S. makes it relatively easy for powerful rich people to evade sanctions. A Russian oligarch may have multimillion-dollar mansions in Washington, D.C.; or multiple steel plants across the Rust Belt; or a controlling stake in a hedge fund in Greenwich, Connecticut; or an entire fleet of private jets in California; or an array of lawyers setting up purchases at art houses around the country. And all of that wealth can be hiddenperfectly legallybehind anonymous shell companies and trusts that are enormously difficult to penetrate.
If Western policy makers hope to hold Putins cronies truly accountable, sanctions will have to be paired with pro-transparency reforms that can disassemble this web of secrecy. Western governments should start by ending anonymity in shell companies and trusts; demanding basic anti-money-laundering checks for lawyers, art gallerists, and auction-house managers; and closing loopholes that allow anonymity in the real-estate, private-equity, and hedge-fund industries. That is, if the sanctions are to retain their bite, the entire counter-kleptocracy playbook needs to be implementedimmediately.
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How the West Undermines Its Own Sanctions (Original Post)
Celerity
Mar 2022
OP
SheltieLover
(57,073 posts)1. Kicking for visibility
I_UndergroundPanther
(12,450 posts)2. We are too beholden
To goddamn ogliarches to create laws with real teeth that might inconvenience and go after the fucking rich people.
There needs to be genuine transparency and accountability or it's more nice sounding bullshit. Bullshit that helps no one but the greedy pigs.
Celerity
(42,646 posts)3. The Golden Rule: They Who Have The Gold Make The Rules
I_UndergroundPanther
(12,450 posts)4. Saddest part is
It never had to become this way. The corrupt people in our midst made sure it became like this.
This could all be undone if more people in high places had the guts to do it.