The sanctions slapped by Washington against several countries have produced the opposite effect. They were intended to derail their economies and serve as a lesson to others, but things developed otherwise. This US assertive rhetoric paved the way for a global black economy. What a nuisance!
According to analysts from The Wall Street Journal (WSJ), the restrictions and export controls imposed by the US on Russia, Iran, Venezuela, North Korea, and China were meant to curb their economic capabilities. Instead, a global underground economy came into being. As a result, the countries hurt by the Western sanctions established a shady trade bloc. Experts acknowledge that the bloc has a rather developed joint economy to challenge the United States in a financial war.
Tough financial and trade restrictions on Russia, Iran, Venezuela, North Korea, and China have led to a kind of "compression" of their economies, limiting their access to Western merchandise and markets. However, over time, these rogue countries have learned to live under restrictions. Despite US sanctions, these countries are actively trading various goods, "ranging from drones and missiles to gold and oil," WSJ points out.
The periodical says that this dubious bloc of countries shares common trade interests. China receives oil from three OPEC members such as Russia, Iran, and Venezuela at bargain prices. In turn, these countries gain profits that can be used to purchase sanctioned goods from China.
"Oil revenues from China support the Iranian and Russian economies and undermine Western sanctions," Kimberly Donovan, a specialist at a Washington analytical center, comments on the scheme. Moreover, the use of the Chinese yuan by third countries for trade settlements curtails Western authorities' access to financial data, making it difficult to enforce sanctions.
This view is certainly refuted by Liu Pengyu, a spokesperson for China’s embassy in Washington. He insists that Beijing's economic and trade relations with other countries are based on equality and mutual benefit. "Trade operations are conducted in accordance with international law, remaining legal and legitimate, and should therefore be respected," Liu Pengyu underscored.
Currently, Russia is dealing with the biggest number of sanctions. Since March 2022, it has surpassed Iran in this regard. Meanwhile, US lawmakers are devising more economic restrictions on Russia. At the end of May, Daleep Singh, the Deputy National Security Advisor for International Economics in Biden’s administration, stated that the United States might impose a "comprehensive embargo on Russian exports." According to the official, Russia is "completely transforming its economy into a war machine."
