While the Trump administration follows through with reimposing sanctions on Tehran after it withdrew the U.S. from the Iran nuclear agreement, the rhetoric over American sanctions on Russia is seriously overheating. Debate centers on the Treasury Department’s potential removal of the Russian aluminum firm Rusal from its blacklist of sanctioned Russian entities. This dispute risks obscuring how a desire to hit back against Russia over its election interference, rather than punish Rusal’s oligarch founder, Oleg Deripaska, invites severe unintended consequences. While the political value of keeping Rusal on the Treasury blacklist may seem high, it comes with wider economic costs that are being overlooked.
The controversy began when Treasury Secretary Steven Mnuchin indicated publicly that the Office of Foreign Assets Control, or OFAC, may remove Rusal from the Specially Designated Nationals and Blocked Persons List, known as the SDN list. OFAC sanctioned Rusal back in April because Deripaska’s holding company, En+ Group, controlled a significant percentage of Rusal shares. In its press release announcing the initial designation, the Treasury Department linked Deripaska directly to the Kremlin, citing an array of illegal activity on behalf of the interests of the Russian Federation. Since then, the Treasury Department has repeatedly extended the deadline for companies to unwind their business with Rusal and a handful of other sanctioned Russian firms, while publicly stating that it was negotiating how to legally allow them to continue operations without Deripaska’s involvement
Read the Full Article at the World Politics Review
More from CNAS
CommentaryTrump’s Sanctions Won’t Deter Moscow
The 2020 election is no more protected from Russian meddling than the 2016 election was....
By Edward Fishman
ReportsSanctions by the Numbers
This edition of Sanctions by the Numbers explores Iran sanctions, tracking how designations and delistings have evolved over time, the dozens of countries affected by Iran-rel...
By Abigail Eineman
CommentaryLocal Interests, Chinese Ambitions, and an Intelligent American Response
Review of Daniel Markey, China’s Western Horizon: Beijing and the New Geopolitics of Eurasia (New York: Oxford University Press, 2020). In his book China’s Western Horizon: Be...
By Emily Jin
CommentarySharper: The Future of U.S. Sanctions Policy
Sanctions are increasingly common in U.S. foreign policy and economic statecraft. But they are not a cure-all....
By Kaleigh Thomas, Cole Stevens & Chris Estep