What are Sanctions?

Sanctions are penalties of varying nature used by nations or international organizations. They encompass measures which aim to pressure targets via financial constraints, asset freezes and trade embargoes, as well as diplomatic isolation and travel bans, to express disapproval of policies or actions¹. Military sanctions, particularly arms embargoes, are used for peacekeeping and to prevent conflict escalation².

They are intended to influence certain behaviors or policies, enforce international norms, deter undesirable actions, and promote foreign policy goals such as counterterrorism, nonproliferation, and the protection of human rights³. Sanctions are seen as a diplomatic middle ground between dialogue and military engagement and can be part of an escalating series of actions. The scope and impact of sanctions reflect their significant role in shaping global economic and political dynamics. The effectiveness and ethical implications of sanctions, especially in terms of their impact on civilian populations, are often subjects of international debate and scrutiny⁴.

Sanctions can be aimed at a wide range of primary targets:

• Jurisdictions: On a jurisdictional level, states can be placed on different types of lists, such as gray or black lists, indicating varying levels of concern or censure from the international community⁵.
• Governments: Specific government bodies or administrations can be targeted by sanctions, often in response to their policies or actions.
• Organizations: Organizations that operate across national borders, like international NGOs, can also face sanctions, which might affect their operations or legal status.
• Companies: Corporate entities may be sanctioned for their practices, involvement in certain industries, or connections to sanctioned nations or individuals.
• Individuals: Sanctions can be levied against specific persons, typically known terrrorists and influential figures like political leaders, businesspersons, or key officials, due to their roles in controversial activities or affiliations⁶.
• Objects: While less common, sanctions can also relate to vessels, aircraft, buildings and similar objects^7,8.

Besides primary targets there are also secondary targets. These relate to jurisdictions, governments, organizations, companies or individuals that engage in certain types of transactions with the primary sanction target. They aim to prevent third parties from assisting the target in evading sanctions⁹.

The three main categories of sanctions are economic sanctions, diplomatic sanctions and military sanctions which are elaborated in more details below.

Economic sanctions

Economic sanctions are intended to be a non-military means of exerting international pressure, and they are often used in response to terrorism, human rights violations, aggression, nuclear proliferation, or threats to international peace¹⁰. While effective in some cases, they can also lead to unintended economic hardships for the general population or the global financial market and can sometimes exacerbate the very issues they aim to resolve. Three different types of economic sanctions can be distinguished.

• Financial sanctions: As a specific type of economic sanctions, financial sanctions focus on restricting or controlling the financial activities of their targets to paralyse the ability to engage in international trade and financial transactions. These include restrictions on access to international banking systems, credit lines, foreign exchange markets, monetary claims and more.¹¹ A recent example of financial sanctions involves the actions taken by the United States against Russia and Belarus, where the U.S. expanded its financial sanctions and export controls against Russia and Belarus, in response to the ongoing conflict in Ukraine. These sanctions, led by the United States and European Union, targeted Russia's energy, metal and agriculture industries¹², as well as its military-industrial complex and technology firms¹³. Additionally, vessels and aircrafts were blocked¹⁴ and the transmission of media companies was suspended¹⁵.

• Trade restrictions: Trade restrictions can consist of embargoes, tariffs or quotas. An embargo prohibits the trade of a specific good, a category of goods, or trade with a certain country entirely. Tariffs represent taxes imposed by governments on certain types of imported goods. Quotas restrict the quantity of a particular good that can be imported into a country, setting a maximum limit. These three protective strategies can work together or intersect in certain circumstances¹⁶.

• Asset freezes: Targeted at governments, organizations and individuals, asset freezes aim to lock financial assets. The assets can range from bank accounts to investments and property. This prevents the target from accessing substantial funds or resources, thereby limiting their financial capabilities¹⁷." +

Diplomatic sanctions

Diplomatic sanctions are measures taken by one or more countries against another jurisdiction to express disapproval or to attempt to change certain behaviors or policies. These sanctions are part of the broader spectrum of international relations and foreign policy tools and are often used in response to political disputes, human rights violations, or aggressive actions. While they may not have an immediate tangible impact, diplomatic sanctions can erode the international legitimacy and standing of the sanction target, potentially leading to more significant long-term effects. Key measures of diplomatic sanctions include:

• Diplomatic isolation: This involves reducing or entirely cutting off diplomatic relations with the targeted jurisdiction. It can range from withdrawing an ambassador to closing embassies and consulates¹⁸.

• Travel bans: Diplomatic sanctions can include imposing travel bans on government officials or representatives of the targeted jurisdiction. This prevents these individuals from attending international meetings or conferences, leading to further isolation¹⁹.

• Cutlural isolation: Also prestigious events like summits, sports tournaments, or cultural festivals can be subject to sanctions²⁰. This not only isolates the target diplomatically but also restricts their ability to influence international policy and debate and blocks them from the economic benefits these events bring." +

Military sanctions

Military sanctions, particularly arms embargoes, play a vital role in international peacekeeping efforts. They are often used in response to conflicts, human rights abuses, or to prevent the escalation of tensions in volatile regions. The Wassenaar Arrangement (WA) plays a vital role when it comes to military sanctions. The WA, emerging from the Cold War's Coordinating Committee on Multilateral Export Controls (CoCom) in 1996, aims to contribute to regional and international security and stability. It emphasizes transparency and responsible action in the export of conventional arms and dual-use goods to prevent destabilizing accumulations of conventional weapons. The WA is not a legally binding international organization but a politically binding export control regime for the more than 40 participating states, operating on consensus. It involves coordinated national export controls, unified principles for assessing goods exports, and information exchange. Annual negotiations update the list of dual-use goods and arms to ensure relevance²¹. The primary forms and objectives of military sanctions include:

• Arms embargoes: These sanctions prohibit the sale, supply, transfer, or export of arms and related material to the target. This includes weapons, ammunition, military vehicles, and equipment. Arms embargoes aim to limit the target's ability to wage war, suppress internal dissent, or engage in aggressive actions²².

• Dual-use goods restrictions : These are limitations on items that can be used for both civilian and military purposes. The aim is to prevent the target from acquiring technology or materials that could be used to enhance their military capabilities²³.

• Military assistance ban: This includes restrictions on providing military training, advice, logistical support but also suspending joint military exercises, defense agreements, or collaborations in military technology. The objective is to impede the target's military development and operational capabilities²⁴.

Sanctions can be categorised into comprehensive, targeted (smart) and sectorial sanctions.

Comprehensive sanctions

Comprehensive sanctions are a significant tool in international relations, designed to block all transactions between sanctioning and sanctioned entities. These sanctions are a pivotal aspect of foreign policy, targeting imports, exports, and restricting financial activities including technology exchange and provision of financing²⁵. Due to their lack in differentiating between policymakers and ordinary citizens in the sanctioned country, the indiscriminative approach of comprehensive sanctions can lead to significant humanitarian concerns, as seen in historical instances like the UN sanctions on Iraq in 1990. These sanctions, which included a full trade embargo and severance of diplomatic relations, faced criticism for their profound impact on Iraqi civilians and their debatable effectiveness in changing the behavior of Saddam Hussein's regime²⁶.

Targeted (smart) sanctions

In the 1990s, a significant shift occurred in the approach to international sanctions, leading to the emergence of targeted sanctions. This change was driven by growing concerns over the impact of comprehensive sanctions on civilian populations. Unlike their broader counterparts, targeted sanctions focus on specific individuals or entities, such as government officials, business leaders, and organizations, rather than impacting entire populations²⁷.

The primary aim of targeted sanctions is to minimize harm to civilians and to challenge the belief that civilian suffering can effectively lead to political change. These sanctions are more discriminating and precise, reflecting a nuanced understanding that the actions of a government might not always represent the views of its citizens. Measures typically employed in targeted sanctions include financial sanctions, trade restrictions on particular goods and travel bans²⁸, strategically imposed to exert pressure on key individuals or entities without causing widespread hardship among the general public.

This approach to sanctions acknowledges the importance of safeguarding innocent civilians in complex geopolitical conflicts. By focusing on specific targets, targeted sanctions strive to achieve political objectives while upholding humanitarian principles. They represent an evolution in international policy, balancing the need for effective action against oppressive regimes with the ethical imperative to protect civilian lives.

Sectoral sanctions

Introduced around 2014, sectoral sanctions represent a strategic evolution in the landscape of international economic measures. These sanctions are distinguished by their focus on specific sectors of a country's economy, such as energy, finance, defense, or technology²⁹. This targeted approach aims to exert maximum pressure on key entities within these sectors while striving to minimize broader economic and humanitarian impacts on the general population.

Sectoral sanctions are highly tailored, prohibiting certain types of transactions specifically with people or entities within the targeted sectors. This level of specificity allows for a more nuanced application of sanctions, targeting critical industries to achieve diplomatic goals without the extensive collateral damage often associated with more comprehensive sanctions. A notable instance of sectoral sanctions was their application against Russia following its annexation of Crimea. These sanctions targeted vital sectors of the Russian economy, including banks, energy companies, and defense firms³⁰.