The EU Blocking Regulation intends to exclude the effects of extraterritorial legislation by third countries and, in particular, those of US economic sanctions, to protect the interests of economic actors in the EU. The goals of the Regulation—effective enforcement of EU law and the protection of the interests of EU economic actors—give rise to an enforcement paradox: a lack of enforcement by the Commission and the state authorities. The Bank Melli case not only demonstrates a shift in the enforcement of the Blocking Regulation to private parties but also sheds light anew on the doubts about its ability to protect private interests.

What strategies work best for enforcing sanctions? Sanctions enforcement agencies like the US Office of Foreign Assets Control (OFAC) face resource limitations and political constraints in punishing domestic firms for violating sanctions. Beyond monetary fines, sanctions enforcement actions also serve a “naming and shaming” function that tarnishes violators’ reputations. Larger, higher-profile companies tend have much more at stake in terms of their reputations than smaller or less well-known firms. At the same time, punishing higher-profile companies for sanctions violations is likely to generate more publicity about the risks and potential consequences of not complying with sanctions. We theorize that OFAC should impose larger fines on high-profile companies to draw attention to those cases, make the enforcement actions more memorable, and enhance the reputational costs that they inflict. We conduct a statistical analysis of OFAC enforcement actions from 2010 to 2021 and find support for our theory.

This article contributes to the understanding of why states resort to targeted, or smart, sanctions to meet the threat of cyber intrusions and whether this type of response is a forced measure or an effective tool to halt, prevent and punish attacking states. The tools of analysis used in the article are legal positivism and political theories, including Mancur Olson's theory of groups and Francesco Giumelli's analytical framework for assessment of sanctions. The authors address the effectiveness of sanctions as a reaction to cyber-enabled activities through the lens of regulation introduced in the United States, the European Union and the United Kingdom, which are the most developed counter-cyber sanction regimes, analysing publicly known cases of cyber-related sanctions.

In response to Putin's invasion of Ukraine, the West imposed a package of unprecedented sanctions that has failed to generate meaningful domestic backlash against Putin's war. Leveraging extant research on the survival of authoritarian regimes under economic sanctions, I show that their devastating economic costs notwithstanding, sanctions are unlikely to destabilize Putin's regime or pressure him to withdraw his troops from Ukraine. The key to explaining this outcome is to zero in on the incentive structure of the groups of individuals that make up Putin's inner circle.

This article asks how costly targeted trade sanctions imposed by the US government are for domestic firms. I argue that, as a result of sanctions, the firm value of US companies that have supply relationships with sanctioned entities is likely to suffer from lost revenue, reputational damage, and business model uncertainty. I test this expectation by applying an event study to the important case of targeted trade sanctions against Chinese technology companies. I find that sanctions against these companies reduced their US suppliers’ risk-adjusted stock returns by 220 basis points. Firm-level cross-sectional analysis shows that businesses with stronger ties to the sanctioned entities are more negatively affected, which supports the direct connection between sanctions and relevant suppliers. Measuring the domestic economic ramifications of sanctions for the sender country has been elusive. These findings, which are statistically and economically significant, indicate that US companies face notable costs from sanctions against internationally active firms.

Signaling games are central to political science but often have multiple equilibria, leading to no definitive prediction. We demonstrate that these indeterminacies create substantial problems when fitting theory to data: they lead to ill-defined and discontinuous likelihoods even if the game generating the data has a unique equilibrium. In our experiments, currently used techniques frequently fail to uncover the parameters of the canonical crisis-signaling game, regardless of sample size and number of equilibria in the data generating process. We propose three estimators that remedy these problems, outperforming current best practices. We fit the signaling model to data on economic sanctions. Our solutions find a novel U-shaped relationship between audience costs and the propensity for leaders to threaten sanctions, which current best practices fail to uncover.

International courts and tribunals so far have shown reluctance to delimit the normative scope of the essential security and necessity exceptions in international economic law. Legal scholars have also refrained from identifying the point of equilibrium between maintaining the core protections of international law and allowing for necessary flexibility in its application. This article argues that such stances are now untenable. The unilateral US withdrawal from the Iran nuclear deal, and the reintroduction of sanctions, has challenged the multilateral order. Although the sanctions resemble earlier measures, violation of the deal and of United Nations Security Council Resolution 2231(2015) has altered the normative context. The threat to the stability of the post-war multilateral order by a permanent member of the Security Council is unique. The author shows why Iran’s recourse to the International Court of Justice (ICJ) in this context should become a landmark case for international economic law and how it traps the ICJ in a gilded cage.

As part of the roundtable “Economic Sanctions and Their Consequences,” this essay discusses whether economic sanctions are morally acceptable policy tools. It notes that both conventional and targeted sanctions not only often fail to achieve their stated objectives but also bring about significant negative externalities in target countries. Economic dislocation and increases in political instability instigated by sanctions disproportionately affect the well-being of opposition groups and marginalized segments of society, while target elites and their support base remain insulated from the intended costs of foreign pressure. Sanctions might also incentivize target governments to use repressive means to consolidate their rule and weaken the opposition. Given these serious shortcomings, I argue that sanctions are ethically problematic tools of foreign policy. Nonetheless, this does not mean that sanctions should be rejected outright, as there might be cases where sanctions are the only viable option, and they might work effectively under certain circumstances. Rather, the essay suggests that policymakers should apply more caution in considering the use of sanctions given their low probability of success, and should be more concerned with the delicate balance between political gain and civilian pain before levying sanctions, whether comprehensive or targeted.

Economic sanctions research suggests that sanctioned countries’ overall economic costs tend to be low. This article argues that, despite this, sanction costs can force the governments of these countries to reallocate budget resources from low-priority spending categories to other categories in an effort to minimize their political costs. One such low-priority category is disaster preparedness and mitigation. The authors show that economic sanctions lead to reduced disaster preparedness spending and, as a result, increase the scale of economic and human losses generated by natural disasters in sanctioned countries.

The ECtHR is in the process of refining its conceptual tools for determining the responsibility of the States Parties to the ECHR acting in execution of a Security Council resolution. Where the implementation of resolutions involving the use of force is concerned, the Court's recent case law has shown a shift towards systematic acceptance of the extraterritorial scope of the ECHR. As to whether the conduct in issue should be attributed to the States Parties or to the UN, the Court now makes a clear distinction between operations authorized by the Security Council and UN peacekeeping operations. The implementation of UN economic sanctions will be addressed differently according to whether or not the respondent State is a member of the EU. The criterion of ‘equivalent protection’ is only applicable in the former scenario. And in any event, it needs to be applied cautiously on a case-by-case basis. As regards the enforcement of economic sanctions by non-EU Member States, the Court tends to interpret Security Council resolutions in a manner consistent with the obligations deriving from the ECHR. More generally, the Court's approach is oriented towards systemic harmonization rather than towards normative conflict.

This article carries a two-fold argument. First, Beijing's economic sanctions against Vietnam during the period 1975–1978 were mainly motivated by its desire to punish Vietnam for an anti-China policy that smacked of ingratitude for the latter's past assistance, fuelled further by Hanoi's closer relations with Moscow. They were also designed to extract Hanoi's accommodation of China's demand for territorial boundary concessions and to halt the persecution of ethnic Chinese residents in Vietnam. Second, the resultant meltdown of Sino-Vietnamese relations, as well as the making of the Soviet-Vietnamese alliance between 1975 and 1978, was gradual and contentious rather than swift and decisive as most existing studies contend. Hanoi's reluctance to forge a formal military alliance with the faraway Soviet Union against China was largely driven by the importance of China's remaining aid and economic potential to Vietnam's post-war economic reconstruction and the uncertainty of the Soviet commitment to aid Vietnam.