April 3, 2022 | The National Interest
To Up the Pressure, Washington Must Sanction Russian ADRs
It will not be painless for American investors, but the pain Vladimir Putin will suffer will be far more.
April 3, 2022 | The National Interest
To Up the Pressure, Washington Must Sanction Russian ADRs
It will not be painless for American investors, but the pain Vladimir Putin will suffer will be far more.
After the Russian invasion of Ukraine, the West has imposed an array of powerful Western sanctions on Moscow to pressure Vladimir Putin into backing down. But with Putin showing no real willingness to retreat, Washington and its allies need to continue ratcheting up the pressure. One way to send a shockwave into the heart of the Russian economy is to target Russian firms cross-listed or traded in U.S. stock markets through American Depository Receipts (ADRs) or Global Depository Receipts (GDRs). While the United States has sanctioned two cross-listed firms, there is no sign that the Biden administration is planning to impose a blanket sanction against Russian ADRs and GDRs. While doing so would carry costs for American investors, that price is worth paying to increase the cost Putin will pay for continuing his war of aggression.