The European Council says further sanctions on Russia are “On the way” The horrific images of Russian atrocities in Bucha – vividly and horribly underscoring the need for more action.

French President Macron wants EU Import prohibited The country’s oil and coal. Germany, which relies heavily on Russian fuel, has resisted such moves. Can the US unilaterally strengthen economic restrictions on Russia by imposing secondary sanctions?

At first glance, this move, proposed Recently proposed by the US National Security Adviser Jack Sullivan, it seems logical. Washington also imposes sanctions on foreign organizations when they conduct transactions with U.S.-sanctioned entities, such as Russian bank VTB. This reduces the scope for such companies to find new counterparties in China, India, Europe or elsewhere.

But secondary sanctions are imperfect weapons.EU created a Blockade Act After the United States imposed sanctions and embargoes on Iran and Cuba. This is to protect EU companies from extraterritorial threats from the US. This is fragile, as few of them would risk being isolated from the U.S. market.

China implemented its own last year law “Maintain national sovereignty” by countering U.S. sanctions. This packs more punch than the EU version. Chinese companies, accustomed to being blacklisted by the United States, are less worried about a confrontation with Washington.

Countries can also use what Tom Keatinge of the Royal United Services Institute’s Centre for Financial Crime and Security Research calls “burning banks” to avoid secondary sanctions. The sole purpose of these is to deal with sanctioned entities.

Examples include Bank of Kunlun, which is controlled by state agency China National Petroleum Corporation and used as a conduit to pay Iran for oil.Washington imposed sanction In 2012, the bank was banned from the U.S. financial system — almost punitive, given Kunlun’s remit.

Avoiding the dollar is another defensive strategy.India and Russia are considering rupee-ruble arrangement for export. Cryptocurrency payments may also be an option.

The secondary sanctions are tied with the selective ban on Russian banks from using the payment messaging system Swift. They claim to have the moral high ground, but only serve the purpose of adding value and compromise.

Secondary sanctions also add fuel to the fire deglobalization, pushing the non-aligned countries away from the developed democracies. The only meaningful escalation in the economic war against Russia remains the European embargo on Russian energy imports, the kind advocated by Macron.

The Lex team is interested in hearing more from readers.Tell us in the comments section below what you think the West should do next to put financial pressure on Russia