New Report Outlines Measures to Strengthen Economic Sanctions
A new report from the Adam Smith Institute (ASI) is calling for a revamped approach to the UK’s sanctions policy, urging the government to focus on disrupting hostile actors rather than relying primarily on deterrence. The paper recommends a revised sanctions strategy, a dedicated National Security Council subcommittee, and a joint unit for sanctions enforcement and counter-threat finance.
Rethinking the Purpose of Sanctions
Sanctions, alongside tariffs and restrictions on access to critical resources, have become essential tools in the UK’s economic statecraft. However, according to the ASI report, current UK sanctions policy places too much emphasis on deterrence rather than actively disrupting hostile states and actors.
The report argues that the primary goal of sanctions should be to constrain an adversary’s ability to operate, using tools like:
- Export and import controls
- Asset freezes
- Bans on financial transactions
While deterrence remains important, the ASI suggests that an effective sanctions regime should prioritise disruption, as this also strengthens the UK’s ability to signal resolve on the international stage.
Key Challenges in Sanctions Implementation
One of the most pressing issues is the evasion of sanctions. The report highlights the need for policymakers to have in-depth knowledge of the target’s economy, supply chains, and financial networks to prevent circumvention. Without better intelligence and coordination, hostile actors can easily find alternative ways to finance their activities, undermining the effectiveness of UK sanctions.
Recommendations for a More Effective Sanctions Policy
The ASI report, authored by James Gillespie, outlines three key policy recommendations:
1. Publish a Revised Sanctions Strategy
The UK government should issue an updated strategy that:
- Explicitly prioritises constraint-based sanctions over deterrence.
- Aligns with other national security policies, such as the Fusion Doctrine and Integrated Review.
- Strengthens links to anti-corruption initiatives and financial crime prevention.
2. Establish a National Security Council Subcommittee on Sanctions
A new subcommittee, led by the Foreign Secretary, would ensure that:
- All relevant government departments coordinate their efforts.
- Sanctions policy remains agile and responsive to emerging threats.
- Expert guidance informs decision-making at the highest levels.
3. Create a Joint Unit for Sanctions and Counter-Threat Finance
This unit would integrate intelligence and enforcement efforts, focusing on:
- Identifying how target states or actors fund their activities.
- Disrupting supply chains and financial networks supporting malign actions.
- Monitoring sanctions effectiveness and adapting strategies accordingly.
Expert Insights on the UK’s Sanctions Policy
Maxwell Marlow, Director of Research at the Adam Smith Institute, said: “In an increasingly unstable world, Britain must have a sanctions policy that is both proactive and strategic. However, the current government structure lacks the necessary agility and coordination to make this happen. Our report provides a clear roadmap for strengthening the UK’s economic defences and leveraging financial power against those who threaten liberal democracy.”
A Call for Immediate Action
With the global security landscape evolving rapidly, the ASI report underscores the urgency of modernising the UK’s sanctions framework. By implementing these recommendations, the UK can ensure its economic tools are strategic, effective, and capable of addressing emerging threats.
