Treasury deputy chief says reviewing costs, benefits of U.S. sanctions

Article by David Lawder

U.S. Treasury Deputy Secretary Wally Adeyemo told securities industry executives on Wednesday that the Treasury will weigh the costs and benefits of financial sanctions to ensure that they remain a strong and viable foreign policy tool.

In a statement following a meeting with the Securities Industry and Financial Markets Association (SIFMA), the Treasury said Adeyemo gave the group an update on his review of Treasury sanctions policy, saying that sanctions “have become the tool of first resort” to address national security and international economic challenges.

“He explained that while this tool has resulted in notable successes, it has also created unanticipated challenges,” Treasury said without naming specific cases.

“The Deputy Secretary stressed that moving forward, and as the United States faces a changing international order, the Treasury Department is assessing the costs and benefits of sanctions use in each case with an eye towards ensuring they remain a strong, viable option for policymakers in the years and decades to come.”

By David Lawder, Reuters, 21 April 2021