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US authorities cannot control the consequences of anti-Russian sanctions — EADaily, June 15, 2022 — Politics, Russia News

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The US administration is not able to fully control the anti-Russian sanctions, which turned out to be largely at the mercy of private business, follows from an article by Bloomberg. Washington, according to the publication, was initially encouraged by the willingness of large companies to wind down business in Russia, but was caught off guard by a variety of unexpected consequences of such an outcome, from the disruption of supply chains to the inability to insure grain export shipments.

“Some representatives of the administration (of the President of the United States Joe) Biden are privately voicing concern that, instead of the deterrent effect they were intended to have on the Kremlin, sanctions are exacerbating inflation, worsening food security and punishing ordinary Russians more than (the President of the Russian Federation Vladimir) Putin and his allies,” writes Bloomberg.

At the same time, the agency sees no signs that the White House considers the sanctions policy to be erroneous and are going to ease the pressure.

Bloomberg cites data from Yale University researchers who estimate that about a thousand companies have completely or partially curtailed their activities in Russia. This outsourcing to the private sector means sanctions are becoming less “surgical, calibrated and receptive to political change,” the agency quoted a former senior adviser to the U.S. Treasury Sanctions Office as saying. Adam Smith.

“The lifting of sanctions could be used as an incentive for a diplomatic settlement of the conflict, but right now it is difficult even to propose, since the outcome of American business was largely of an initiative nature. Companies may face a public backlash if they are suspected of hastily re-entering the Russian market.

Companies are often overcautious, fearful of violating confusing sanctions rules and not receiving timely clarification from the authorities.

“Companies are asking, ‘Should we sanction this entity?’ The government is saying, ‘You have to make your own decision.'” Justin Walker.

The departure of leading American companies leaves market niches for their foreign competitors, including Russian firms that buy up assets at low or no prices at all.

“(It) does some psychological damage to Russia, psychological trauma, … but the weakening of the American“ soft power ”is this what the US wants?” Bloomberg quotes Smith.

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