The Illusion of “Smart” Sanctions: The Russian Case

Abstract

The 21st century has seen a gradual shift from overwhelming sanctions, mainly trade embargoes, towards targeted or “smart” sanctions. The latter target designated natural and legal persons associated with a country’s government, while ostensibly imposing minimal hardship on its general population. However, many empirical studies prove the existence of significant spillover effects and collateral damage from targeted sanctions. This research aims to determine whether “smart” sanctions are a reality, or a myth created to legitimize their use. The analysis shows that targeted sanctions against Russia have had spillover effects beyond the targets. The authors consider four types of spillover effects—economic, political, legal, and psychological (or reputational) ones—and suggest the criteria that determine how targeted a sanction is.