The Booty Report

News and Updates for Swashbucklers Everywhere

Arrr! Russia, be swashbucklin' through the sanctions sea, learnin' from Iran's tricks. Aye, 'tis a convenient alliance indeed!

2023-07-21

Arrr, Iran and Russia be gettin' a taste o' the ol' U.S. and international sanctions, for their misdeeds on the high seas. But like cunning pirates, they be tryin' to outsmart 'em, fightin' against the rules they be forced to follow.

This week, the U.S. imposed new sanctions on Russia and entities based in other countries in an effort to limit Moscow's access to finances and products that support its invasion of Ukraine. Companies based in Kyrgyzstan, the United Arab Emirates, and Serbia are all facing penalties for aiding Russia's war efforts. Former Ambassador to Poland, Daniel Fried, commented on Russia's alliances, stating that apart from China, Russia's friends are generally the world's outcasts. Iran has been supporting Russia in its war efforts by supplying drones, and the two countries have recently linked their banking systems to ease the economic pressure caused by sanctions. Behnam Ben Taleblu, a senior fellow with the Foundation for Defense of Democracies, noted that Russia is learning tactics from Iran on how to bust sanctions. Iran has been using illicit means, such as renaming ships and conducting covert transfers, to maintain its revenue from oil exports. The country has also been using its shadow banking system to disguise business with foreign customers. Despite efforts to evade sanctions, Iran's economy is still feeling the impact, with inflation at around 40% and a trade deficit for non-oil trade. Russia's economy has also been struggling, with a drop in GDP and predictions of further shrinkage. Experts believe that while Iran and Russia have found ways to avoid sanctions, the pressure is still mounting on their economies. The purpose of sanctions is to cause economic stress, and even though there may be some cheating, it doesn't mean the sanctions are ineffective. The U.S. is determined to continue applying economic pressure and force behavioral change in both Iran and Russia.

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