US Sanctions Ripple Effect Hits Third Countries

The United States has introduced new sanctions on Russia and Iran, but their impact is not limited to those countries. Foreign banks, businesses, and even entire nations that deal with sanctioned entities can face penalties.

Bangladesh, for instance, faces risks involving Russian oil, fertiliser, and the Rooppur nuclear plant project. The country's wheat or fertiliser importers, Chinese refineries, Indian oil buyers, Turkish traders, UAE shipping firms, or European banks may unintentionally break US law if a transaction touches Russian or Iranian energy, finance, or shipping.

The effects of these sanctions go beyond formal prohibition. When enough banks, insurers, and shipping lines decide the risk is not worth it, sanctioned cargo becomes slower, costlier, and riskier to move, even though it remains physically available.