Financial Sanctions

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Secondary Sanctions: A Weapon Out of Control? Part I: Permissibility of the sanctions under the law of jurisdiction

Lately, the US has increasingly been ‘weaponizing’ economic sanctions to push through a foreign policy agenda. Making use of the centrality of the US in the global economy, it has forced foreign states and their firms to choose between halting trade with US sanctions targets or forfeiting access to the lucrative US market. In addition, the US has not shied away from slapping huge fines on foreign firms present in the US that route payments to sanctions targets through the US financial system. While US reliance on economic sanctions as a foreign policy tool is hardly novel, the US has recently made much more aggressive use of them to project US power abroad. Most eye-catching have been the reinstatement of US sanctions against Iran in 2018, the strengthening of the Cuba boycott, and the sanctions on persons involved in the construction of the Nord Stream 2 gas pipeline, which will transport natural gas from Russia to the European Union. US sanctions do not only govern economic relations between the US…

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UK Extraterritorial Financial Sanctions: Too Much, Too Little, Too Late?

The US practice of the extraterritorial application of sanctions was criticised for years as, at best, the illegitimate abuse of its particular position in the world’s economy. Despite its fully comparable position in international finance, the United Kingdom was shielded from such criticism predominantly thanks to the transfer of respective decision-making to Brussels. The nature and scope of…

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