The murder of journalist Jamal Khashoggi thrust an otherwise little-known sanctions program into the spotlight—the Global Magnitsky Human Rights Accountability Act (or GloMag in sanctions parlance). On November 15, the US Department of the Treasury’s Office of Foreign Assets Control used the GloMag authority to designate seventeen Saudi citizens for their role in the Khashoggi killing. In “Global Magnitsky Sanctions: Raising the Human Rights and Anti-Corruption Bar” author Samantha Sultoon, a visiting senior fellow at the Atlantic Council’s Global Business & Economics Program and Scowcroft Center for Strategy and Security, argues that the GloMag sanctions offer a targeted response to human rights violations and corruption. The author adds that this sanctions authority has far-reaching implications for international businesses because it creates the need for companies to shift to a proactive corporate risk and due diligence strategy to account for human rights and corruption issues. Sultoon points out that this sanctions authority opens the door for multilateral sanctions actions with US allies, partners, and international human rights groups seeking to raise awareness of human rights violations and corruption. Finally, the author provides specific recommendations of how to maintain the integrity and value of the GloMag authority:
Russian President Vladimir Putin’s persistent efforts to influence the domestic politics of his neighbors and countries well beyond Russia’s borders have posed enormous challenges in Europe and across the Atlantic. More than any other country, Ukraine has been the unwanted recipient of Moscow’s attention, particularly during the past five years. The Kremlin has sought to place a pliable client in command in Kyiv and block Ukraine’s Euro-Atlantic aspirations, including by pressuring the previous Ukrainian leadership against signing. The March 2019 presidential election will be a pivotal event in Ukraine’s history.
The rapid uptake of disruptive technologies in Africa, such as mobile and financial technologies, is prompting speculation among tech investors about whether artificial intelligence (AI) applications will also take root on the continent.
On November 5, 2018, the United States completed the re-imposition of nuclear related secondary sanctions on Iran. US President Donald Trump had announced in May that the United States would withdraw from the Joint Comprehensive Plan of Action (“JCPOA”) with Iran. To re-impose the sanctions, the US Departments of State and Treasury have revoked licenses that authorized certain activity with Iran as well as the waivers that were issued to lift the threat of secondary sanctions against non-US persons engaged in certain transactions involving particular Iranian individuals or entities. In “A Road-Map of the Re-Imposed Sanctions for Iran” authors David Mortlock, a senior fellow with the Atlantic Council’s Global Energy Center, and Nikki M. Cronin, an Associate at Willkie Farr & Gallagher LLP, provide a detailed, technical overview of the secondary sanctions on Iran that took effect on November 5, 2018.
As a second and more punishing wave of US sanctions hits Iran, the Islamic Republic is dusting off an old playbook for circumventing such penalties and maintaining a crucial level of oil exports and other trade. A new issue brief by Holly Dagres and Barbara Slavin -- How Iran Will Cope with US Sanctions – discusses the myriad techniques Iran developed before negotiating the Joint Comprehensive Plan of Action, when sanctions had wider international support. The Islamic Republic is already redeploying many of these techniques, from turning off tracking devices on tankers to co-mingling oil with that of other exporters to the use of barter with key trading partners.
In recent years, US economic and financial sanctions have become favored tools of US power. The centrality of the US financial system and the ubiquity of the US dollar in the global financial marketplace make sanctions a powerful tool to have on hand when confronting foreign policy challenges. The great danger is, however, that sanctions become a substitute for actual policy, rather than merely a tool of foreign policy. In “US Sanctions: Using a Coercive Economic and Financial Tool Effectively” authors David Mortlock and Brian O’Toole, who are both senior fellows at the Atlantic Council’s, explain what sanctions are and why they are used. The authors assess the Trump Administration’s use of sanctions and outline the conditions under which sanctions are most effective. Finally, Mortlock and O’Toole provide specific recommendations on what steps the US government must take to ensure sanctions remain a key component of the national security toolkit.
Growing anxiety about China’s dominance of emerging markets spurred a rare bipartisan effort to pass the Better Utilization of Investments Leading to Development (BUILD) Act of 2018. The BUILD Act delivers a needed overhaul of US development finance capabilities and commercial diplomacy by subsuming the Overseas Private Investment Corporation (OPIC) and other development finance agencies into a single, streamlined entity: The United States International Development Finance Corporation (USDFC). The USDFC will provide policymakers with new tools for supporting US commercial diplomacy and promoting US corporate success in fast-growing foreign markets, including equity and grant making capabilities.
In the issue brief "Europe's Southern Gas Corridor: The Italian (Dis)connection," Atlantic Council senior fellow John M. Roberts gives an update on where things stand in completing a crucial component of the Southern Gas Corridor, the Trans Adriatic Pipeline (TAP). The pipeline - which will bring Shah Deniz gas from Azerbaijan to Greece, Albania, Italy and other Western European markets - is officially scheduled to open in 2020.
Iran began its military involvement in Syria in 2011, at the outbreak of the civil war. Tehran’s immediate objective was to defeat the Syrian opposition militarily to save Syrian President Bashar al-Assad. The maintenance of the Shia-Alawi-dominated regime in Damascus was key to the Islamic Republic’s long-term regional strategy, the creation of a contiguous Shia arc of influence in the region, linking Iran through Iraq to Syria and Lebanon. The Syrian theater also witnessed changes to Iran's traditional use of proxies, militias, and plausible deniability.
African film, music, and fashion are exploding in popularity on the global stage. From Nigeria’s Nollywood film industry to the visual arts in South Africa, creative and cultural industries (CCI) represent a new realm of economic opportunity. From artists to distributors, Africa’s creative economy is currently estimated to employ about half a million people, generates $4.2 billion in revenue, and is growing rapidly. In order to expand Africa’s share of the $2.25 trillion global entertainment market, African governments, businesses, and investors should find innovative ways of supporting, promoting, and investing in CCI.