Double-Edged Sword of the Economic Sanctions Harms the Regional Economic Connectivity and Globalization and Disturbs the International Economic Relations

Abstract

The country that imposes sanctions and the sanctioned country both face significant economic losses in miscellaneous sectors of the economy, employment shrinkages, and in many cases create obstacles for projects of an economic nature. Economic sanctions make it difficult to achieve the United Nations sustainable development goals. Pakistan cannot start construction work on the 56-inch diameter Iran-Pakistan gas pipeline because of United States sanctions fear. The result will be the 18 billion dollar penalty, which will seek Iran from Pakistan in the future if Pakistan fails to complete the project. Forty percent of Pakistani people are living below the poverty line. The imported pipeline gas is the cheapest option for poor Pakistanis than an imported liquefied natural gas pipeline. No United Nations member state has the right to impose economic sanctions on other United Nations member states as per the United Nations Declaration on the Inadmissibility of Intervention in the Domestic Affairs of States and the Protection of Their Independence and Sovereignty. The Republic of Moldova joined the Vertical Natural Gas Corridor. Diversification of gas supply sources is a good approach from Moldova’s energy security point of view. The natural gas received from the Vertical Natural Gas Corridor will be the combination of costly liquefied natural gas and cheap Azeri Trans-Adriatic Gas Pipeline. A Russian pipeline gas through the territory of Ukraine is another dimension of energy security, and the government of Moldova needs to benefit from this opportunity. The Iasi-Ungheni pipeline from Romania to Moldova is the third source of gas supply diversification. Regional economic interdependence and globalization are the key instruments for economic growth. Economic sanctions harm the economies of not only the sanctioned country but the economies of multiple other countries. Sanctions on Belarusian potash negatively impact the food security of the world. It increases fertilizer prices and food prices. The economies of Belarus and Lithuania are not only suffering but also multiple other nations of the world are caused harm by this sanction. DOI: https://doi.org/10.53486/cike2024.05; UDC: [341.655:005.334]:339.9; JEL Classification: F51, F02, F6