Bill Overview
Title: Russia and Belarus Financial Sanctions Act of 2022
Description: This bill requires a U.S. financial institution to take all necessary and available actions to ensure any entity or person owned or controlled by such institution complies with financial sanctions applicable to Russia or Belarus to the same extent required of that institution.
Sponsors: Rep. Sherman, Brad [D-CA-30]
Target Audience
Population: People and businesses affected by financial sanctions on Russia and Belarus
Estimated Size: 10000
- The bill primarily targets entities and individuals associated with U.S. financial institutions that engage in transactions with Russia or Belarus.
- The financial sanctions imposed on Russia and Belarus are likely to impact a variety of stakeholders including businesses, government officials, and oligarchs within those countries.
- The global financial system will also be affected, with potential impacts on financial institutions operating internationally.
- Entities with business interests in Russia and Belarus, particularly those connected with the oil, gas, and banking sectors, will be significantly impacted.
Reasoning
- The targeted population includes U.S. financial entities and their clients with economic ties to Russia and Belarus.
- While the immediate impact might be limited to specific businesses involved in international trade or finance, there's a broader indirect effect on global trade relations which can ripple through different industries.
- Given the limited budget for the policy, actions will be more regulatory than direct payouts or economic assistance.
- The program's impact will be most pronounced in sectors with significant Russian or Belarusian involvement, such as energy and banking.
- Some individuals or businesses could experience negligible impact if they have no financial tie to the regions in question, while others might see substantial disruption to business operations.
- Because the policy is financial in nature, the primary effect will be on corporate entities rather than individual taxpayers, except for those directly employed by affected firms.
Simulated Interviews
Investment Banker (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The sanctions have made everything more complicated.
- We're seeing a lot of restructuring in portfolios.
- Clients are anxious about their Russian assets.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 8 |
Energy Sector Analyst (Houston, TX)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- There’s been a significant scramble to find alternative partners.
- It's a stressful time for those who rely on Russian energy demands.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cryptocurrency Broker (Miami, FL)
Age: 29 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- Crypto is one way some are trying to bypass sanctions, but it's made my work more scrutinized.
- There are lots of new regulatory hoops to jump through.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
University Professor (Boston, MA)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 7/20
Statement of Opinion:
- It's a fascinating case study for my classes.
- The sanctions have introduced real-world variables for theoretical models.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Import/Export Business Owner (Chicago, IL)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- It's been tough sustaining relationships and managing costs.
- Clients are hesitant about future commitments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Lobbyist (Washington, D.C.)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- The sanctions are affecting various clients differently.
- Navigating these changes requires continuous engagement with policymakers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Tech Start-up Founder (San Francisco, CA)
Age: 30 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- These sanctions present both a challenge and an opportunity.
- Our market expansion plans need reevaluation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Retired Government Official (Los Angeles, CA)
Age: 60 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- I see the policy as necessary for maintaining international order.
- Impacts are more educational for me now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Software Developer (Seattle, WA)
Age: 36 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- There's been increased demand for compliance solutions.
- It's a busy time adapting our products to meet new policies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Accountant (Dallas, TX)
Age: 42 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Sanctions add a layer of complexity to client reports.
- Advising clients has become more difficult.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $10000000 (Low: $8000000, High: $12000000)
Year 2: $10000000 (Low: $8000000, High: $12000000)
Year 3: $10000000 (Low: $8000000, High: $12000000)
Year 5: $9000000 (Low: $7000000, High: $11000000)
Year 10: $8000000 (Low: $6000000, High: $10000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The need for robust compliance frameworks in financial institutions will drive both costs and savings.
- Long-term geopolitical impacts may alter the estimated economic impacts.
- The cost of sanctions compliance is difficult to accurately measure due to evolving regulatory expectations.