Q&A · 2:54:40-2:55:47

Sanctions evasion can leave trading partners with the advantage

The sanctions discussion considers how trade can continue while bargaining power shifts toward the buyer.

Question

How effective would sanctions be if many countries continued trading with China and other sanctioned states?

Short answer

The reply distinguishes continued trade from its terms: working around sanctions can require less favorable agreements.

Notes

Continued trade under sanctions can require agreements on unfavorable terms. Russia's dealings with India provide the example in this exchange. India is described as using Russia's need for trading partners to secure terms Russia would otherwise reject. This distinguishes finding a buyer from preserving the seller's previous bargaining power.