U.S. Sanctions Triple, but North Korea, Russia, and Iran Withstand via Bypass Routes
WSJ: "Mastering Sanctions Evasion"
China's Financial Network and Rerouted Trade in Play
The United States has significantly intensified economic sanctions against so-called "rogue states" such as North Korea, Russia, and Iran. However, there are concerns that these countries are circumventing the sanctions network by utilizing various bypass routes.
On June 20 (local time), The Wall Street Journal (WSJ) reported, "North Korea, Russia, and Iran have effectively mastered the art of evading sanctions," and stated that these countries are not suffering significant damage despite U.S. pressure.
According to the U.S. Department of the Treasury, the number of newly imposed sanctions per year surged from 880 in 2017 to over 3,000 last year. However, North Korea is securing funds for nuclear development through means such as cryptocurrency hacking, while Iran continues its oil exports, primarily to China. Russia is also believed to be offsetting much of the sanctions' impact through energy exports and rerouted trade with third countries.
The WSJ particularly analyzed that China's financial network and yuan-based payment system play a key role in helping Iran and Russia evade sanctions. U.S. authorities believe these countries are using shell companies and intermediaries established in China, the United Arab Emirates (UAE), Türkiye, and other nations to secure essential supplies and funds.
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However, experts point out that the issue lies not with the sanctions themselves but with their enforcement. Avi Vishnevitz, Senior Researcher at the Center for Terrorism Financing Research, evaluated, "The problem was not that the sanctions were weak, but that enforcement and implementation were insufficient." Former U.S. Treasury official Max Meizlish also cautioned against the growing argument that sanctions are ineffective, stating, "Sanctions are just one tool."
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