The impact of economic sanctions as a foreign policy instrument: the example of U.S. Sanctions on Russian energy industry

Economic sanctions, especially during the twentieth century, emerged as a foreign policy tool. Economic sanctions were a perfect tool of the Cold War as a deterrent for employing military power. The main objective of employing economic sanctions is to make the other party to reexamine and potentially revise its policies causing the unrest, and ultimately comply with the requirements of the coercer. However today the level of effectiveness of employing economic sanctions as foreign policy instrument is subject to wide debate. This study is prepared with the objective of contributing to the debate using a case study to answer the question of whether economic sanctions are a viable deterrent to achieve the desired outcome. In the study we examined whether the US sanctions placed on the Russian energy sector was an effective deterrent after Russia’s annexation of Crimea. The study examined the background and the purpose of these sanctions and evaluate their effectiveness by discussing their impact on the Russian energy sector. This case study helps to answer the broader question of the efficacy of economic sanctions. Based on this case study, we argue that a better way to assess whether the sanctions reach their desired outcome is to consider the overall profile of the country that is the subject of sanctions.This study was compiled from the author’sthesis, titled as “The Impact of Economic Sanctions as a Foreign Policy Instrument: The Example of U.S. Sanctions on Russian Energy Industry”.