From the decades-long Cuba embargo to the more recent sanctions against Iran, North Korea, and Russia, global sanctions reshape industries and create steep barriers for businesses. They force companies to reassess supply chains and absorb the costs of finding new markets and partners. They also wreak reputational damage, which can ripple through customer relationships and investor confidence. In today’s highly interconnected world, understanding and adapting to the impact of sanctions is key for business success.
Sanctions affect more than just trade patterns: They influence political dynamics, alter governance, and influence the everyday lives of citizens in targeted countries. While scholars debate their effectiveness, there is little doubt that they have broad and deep impacts.
In the book, Bachelet argues that sanctions are often applied without democratic discussion and extensive economic analysis. This is particularly true when the sanctioning nations are permanent members of the UN Security Council, as is the case with Russia and China (close ally to Putin). In practice, such measures can exacerbate tensions between voting members.
The book also examines how sanctions impact contentious politics. For example, the authors argue that the “regulatory constraints” imposed on individuals and firms that are deemed close associates of Putin have helped to draw certain sectors of society into interest-group politics, where street mobilizations and more formal bargaining tactics can put pressure on the state.
Moreover, the authors argue that implementing robust anti-money laundering and countering the financing of terrorism (CTF) compliance programs requires rigorous due diligence on all transactions, suppliers, and customers to ensure that no sanctioned individuals or entities are involved. To do this effectively, organizations must employ advanced name-matching technology to overcome language ambiguities caused by spelling variations and transliterations.
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