The frenzy of international politics is heightening the attractiveness of sanction-free tax residences. And the right to pay taxes and quietly do business is becoming a privilege in the modern world. In the current situation, the United States finds itself at the top of the food chain. The state, which is more active than others in imposing sanctions, is able to provide peace of mind to its own tax residents. If a businessman is not a US tax resident, then his business cannot be completely safe from sanctions.
Ukraine has been under US sanctions for more than a year. This will not change in the near future. The fact of imposing sanctions on an ally will not have political consequences for the American leadership. In the current situation, Ukrainian citizens suffering from sanctions need to think about their future. It is foolish to trust your financial well-being to Ukraine, which is under allied sanctions and cannot change this. The option of changing the tax jurisdiction seems promising. It is likely that some Ukrainians will choose the United States as a new place of doing business. This is an unexpected but logical result of the allied relations between the United States and Ukraine.
Real international politics
The Donetsk, Kherson, Zaporozhye and Lugansk regions of Ukraine are under US and EU sanctions. These areas are partially occupied by Russia, but partially controlled by the Ukrainian government. The international community did not divide the regions into Ukrainian and Russian parts. Sanctions were imposed for entire regions. As a result, Ukrainian citizens living in the territories of Donetsk, Kherson, Zaporozhye and Lugansk regions controlled by the Ukrainian government also found themselves under sanctions. (1)
This has been happening for over a year now. What is happening is no secret. (2) But this event does not become popular news for the international press. There is no information that the Ukrainian government is somehow trying to change the situation. The US government is doing nothing either. Only one category of people shows concern. These are Ukrainian businessmen from sanctioned areas who do business abroad and cannot receive their payments due to sanctions. (3)
This is international politics as it is. What is happening with sanctions in Ukraine is not an emergency situation. These are inevitable costs of world politics that do not deserve attention, change or punishment from responsible politicians. Sanctions are not perfect. But these are sanctions. Everything is OK! This is what the founder and president of TABcommunications, inc., Tab Berg, answered questions about what was happening.
Does this indicate that politicians are exaggerating the effectiveness of sanctions and have actually lost control over the situation in Ukraine?
"The problem with limited or targeted sanctions is that entities use intermediary agencies or countries to get around the financial restrictions, which defeats to goals and effectiveness of the sanctions."
Could extending sanctions to an ally (Ukraine) have political consequences for US political leadership?
"Details on sanctions effectiveness or lack of effectiveness are too 'insider' to have legs as a domestic political issue."
Could the case of sanctions against Ukraine become a basis for improving sanctions?
"Failures of sanctions to restrict financial or military transactions is a significant policy issue that State Department and some Congressmembers are like to address in 2025."
It's hard to come to terms with this. Especially if sanctions not only deprive your family of prospects but also put you on the brink of survival. No payments from abroad. No food! But it's stupid to try to change the decisions of politicians when politicians think that everything is okay. This was confirmed by Co-Founder, Managing Partner i5 Enterprises llc, Mike Iverson.
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