In a recent meeting with diplomats in Brussels, a senior EU official confided that "the sanctions game is being won by those who know how to navigate the gray areas." This anecdote highlights the need for more effective sanctions compliance and enforcement, a crucial aspect of holding countries accountable for their actions. As tensions between Russia and Ukraine continue to simmer, the Netherlands has taken a proactive step towards addressing this issue.
The Dutch government has announced plans to host a conference on sanctions compliance and enforcement in early 2025, bringing together policymakers, legal experts, financial institutions, and business representatives from across the globe. This move aims to create a level playing field at both national and European levels, ensuring that sanctions are practicable and effective in deterring rogue states.
Historically, sanctions have been employed as a tool of statecraft, with varying degrees of success. From the British boycott of Dutch textiles during World War II to the modern-day economic warfare waged by the United States against North Korea, sanctions have proven to be an imperfect but sometimes effective means of pressuring recalcitrant governments. However, their efficacy depends heavily on strict compliance and enforcement.
In the case of Russia's ongoing aggression in Ukraine, sanctions imposed by the West have been touted as a major factor in weakening Moscow's economy and limiting its military capabilities. Yet, despite these efforts, Russia continues to find ways to circumvent the sanctions, often through sophisticated financial networks and clandestine trade routes.
Key stakeholders, including Ukrainian President Volodymyr Zelenskyy's special adviser Vladyslav Vlasiuk, EU sanctions envoy David O'Sullivan, Finnish Foreign Minister Elina Valtonen, and Latvian Foreign Minister Baiba Braže, will take part in the conference to share their expertise on sanctions compliance and enforcement.
Recent developments have highlighted the need for more robust sanctions enforcement. In 2023, a report by the International Crisis Group revealed that Russia had managed to circumvent sanctions worth $10 billion, largely through its use of Chinese banks and financial networks. This finding underscores the importance of improving international cooperation and harmonization in sanctions compliance and enforcement.
The Dutch conference will provide a platform for policymakers, experts, and business leaders to discuss best practices in sanctions compliance and enforcement. The event aims to identify areas where governments can improve their cooperation and coordination, ultimately ensuring that sanctions are more effective in achieving their objectives.
In the short term (next six months), it is likely that the Dutch conference will lead to a renewed focus on sanctions compliance and enforcement among EU member states. This could result in increased cooperation and harmonization of sanctions policies, as well as improved capacity-building for governments to monitor and enforce sanctions effectively.
Looking ahead to the long term (five to ten years), the conference may help establish a new global standard for sanctions compliance and enforcement. By promoting international cooperation and best practices, the event can contribute to a more effective and sustainable response to state-sponsored aggression.
As the world grapples with the challenges of modern-day geopolitics, it is essential that we prioritize cooperation and coordination on sanctions compliance and enforcement. The Dutch initiative offers a timely reminder that sanctions are only as effective as those who implement them – and that it is time for policymakers to take a closer look at the gray areas where sanctions often fail.
By engaging in open dialogue and sharing best practices, governments can work together to create a more robust and effective sanctions regime. As one expert noted, "Sanctions compliance and enforcement require a coordinated effort from governments, international organizations, and civil society – a collaborative approach that prioritizes clarity, consistency, and cooperation."