Sanctions and Economic Security: The Third-Country Dilemma

Abstract

G7 states are increasingly using economic sanctions in the conduct of their foreign policies. Such sanctions have serious impacts on third countries, even though they are not directly targeted. The cases of Armenia and South Africa illustrate the challenges that third countries face as they seek to balance competing geopolitical and economic imperatives. Sanctions often penalise such countries if they fail to reduce ties with sanctioned countries and entities. However, a more effective approach would rebalance this relationship through greater engagement.