10/23/2024

How U.S. Sanctions Work, Illustrated by a Russian Oligarch’s $90 Million Yacht

Understanding how sanctions work

Over the past 20 years, the use of economic sanctions has exploded. The United States now targets more than 15,000 individuals, businesses and governments, imposing penalties that affect roughly one-third of all nations on Earth.

But how do sanctions work? Let’s follow the path of one Russian yacht to its seizure in Mallorca.

1. The White House acts

A sanctions program starts when the president determines there is a threat to the U.S. economy, foreign policy or national security — in this case, Russia's 2014 invasion of Ukraine, seizure of Crimea and other activities abroad. White House aides then direct the Treasury Department to start looking for targets connected to that threat. With Russia, potential targets included billionaires accused of benefiting from the regime of Russian President Vladimir Putin.

Please select this link to read the complete article from The Washington Post.