UNILATERAL, BUT CARRY WEIGHT
“Unlike United Nations’ sanctions, US sanctions are unilateral,” explained S Rajaratnam School of International Studies research fellow Muhammad Faizal Abdul Rahman.
“But they carry significant weight as the US is the largest economy in the world by GDP (gross domestic product) and it is the global power that dominates the international financial system.”
He said that foreign firms under US sanctions would find it difficult to do business with American entities or individuals, and sell or procure goods and services from the US market.
Such sanctions would also isolate these companies from the international financial system, said Mr Faizal.
“These sanctions could also function as indirect political pressure on other countries, especially those in the non-western world, to do more to rein in the sanctioned companies and be more aligned with the West in efforts to weaken the Russian economy and military-industry complex,” he said.
Dr Shashi Jayakumar, executive director of security consultancy SJK Geostrategic Advisory, noted that this is not the first time that Singapore entities or individuals have been designated under the OFAC sanctions list.
“Singapore entities and individuals have been designated under OFAC in the past on account of their links with, or dealings with, North Korea, Iran or Myanmar,” he said.
In March 2022, Singapore imposed financial measures targeted at designated Russian banks, entities and activities in Russia, as well as fundraising activities benefiting the Russian government.
The Singapore government also imposed export controls on items that can be “directly used as weapons to inflict harm on or to subjugate the Ukrainians”, as well as items that can contribute to offensive cyber operations, the Ministry of Foreign Affairs said then.
