Sanctions Update (with Turza Comment)
The situation in Ukraine is nearing another critical juncture in the aftermath of the presidential elections on May 25, 2014. As previously reported on the Cabinet, U.S. and European leaders continue to assess whether Russian meddling constitutes grounds for the imposition of a new round of sanctions, including sector-based measures that may target the Russian energy, minerals, and financial services industries, among others.
Beyond Ukraine, a number of other sanctions-related developments occurred in the past week. On May 23, 2014, the U.S. Treasury Department announced sanctions against the current head of the Tehran Provincial Public Security Council, Morteza Tamaddon, pursuant to the Iran Threat Reduction and Syria Human Rights Act of 2012 and Executive Order 13628, which authorizes the designation of those persons who have prohibited, limited or penalized Iranians' freedom of expression or right to assemble.
Meanwhile, on May 22, the United Nations added the Nigerian terrorist organization and al-Qaida affiliate Boko Haram to the 1267 sanctions list, a list of al-Qaida linked individuals and entities subject to asset freezes, travel bans, and arms embargoes. Boko Haram has been subject to U.S. sanctions since November 2013, when OFAC announced that the group had been added to its Foreign Terrorist Organization and Specially Designated Global Terrorist lists.
Finally, the prospects of sanctions against Venezuela and Thailand (two countries that are experiencing protracted civil strife) were also raised this week. With respect to Venezuela, U.S. Secretary of State John Kerry warned on May 21 that in the absence of political reconciliation between the government and opposition protesters, the United States may consider sanctions against the country. According to media reports, President Nicolás Maduro is engaged in an escalating crackdown against anti-government protesters, and his security forces have been accused of torture and other abuses. In Thailand, a military coup on May 22 was promptly condemned by many world leaders, and the United States has announced a review of its military cooperation with the country. For the moment, the imposition of more serious economic sanctions has not been discussed publicly by U.S. officials.
Turza Comment: If pro-Russian separatists continue the types of violent attacks carried out against Ukrainian government forces, Western leaders face strong domestic pressure to make good on their threats of additional stronger sanctions against Russia. It remains to be seen how they will balance this pressure with the potential for significant economic disruptions should sector-based measures be imposed.
Related news: Twelve More Russians Sanctioned under Magnitsky Act (with Turza Comment) (May 20, 2014); Sanctions Update for Week of May 12, 2014 (with Turza Comment) (May 16, 2014); Update on Ukraine and Other Sanctions - Week of May 5 (with Turza Comment) (May 9, 2014); Sanctions Update: Ukraine and Beyond (with Turza Comment) (May 2, 2014). See also: Cabinet Sanctions Page (some materials accessible to Cabinet subscribers only). For more information, please contact Dale Turza, James Treanor or Keith Gerver.