Understanding sanctions: what they are and how they work

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Sanctions appear in world news so often that it is easy to lose track of what the word actually means. In broad terms, sanctions are measures that restrict economic or other dealings with a country, an organisation or a person, in order to change behaviour, limit capabilities or signal disapproval, without using military force. This guide explains the main types, who imposes them and why their effects are debated.

Who imposes sanctions

The UN Security Council can impose sanctions under Article 41 of the UN Charter, which covers measures not involving armed force, such as interrupting economic relations and communications. Decisions taken under Chapter VII are binding on all member states, which must then put them into effect in their own law.
Regional bodies. The European Union adopts sanctions, which it calls restrictive measures, as part of its common foreign and security policy. These decisions require unanimity among member governments.
Individual countries impose their own sanctions. The United States, for example, administers many programmes through the Treasury's Office of Foreign Assets Control. The United Kingdom has its own regime, with financial sanctions implemented by a Treasury office.

Sanctions imposed by a single country or group without a UN decision are often called unilateral or autonomous sanctions.

Common types

Asset freezes. Money and property belonging to listed people or entities cannot be used or moved within the sanctioning jurisdiction.
Travel bans. Listed individuals cannot enter the sanctioning country or region.
Arms embargoes. Restrictions on selling or supplying weapons and related equipment.
Trade restrictions. Bans or limits on importing or exporting particular goods, such as energy, luxury goods or technology with military uses.
Financial restrictions. Limits on banking, investment, insurance or access to payment systems.
Sectoral sanctions. Measures targeting a specific part of an economy rather than everything.

Targeted versus comprehensive

Older sanctions sometimes restricted almost all trade with a country. Concern about their effect on ordinary people led many governments to prefer targeted or smart sanctions aimed at specific individuals, companies and sectors. Most sanctions regimes now include exemptions or licences for humanitarian goods such as food and medicine, though aid organisations sometimes report that banks and suppliers are cautious about anything connected with a sanctioned country.

How sanctions are enforced

Lists. Governments publish lists of designated people, companies, vessels and organisations.
Compliance. Banks, shippers and businesses must screen customers and transactions against these lists, and can face penalties for breaches.
Secondary sanctions. Some countries threaten penalties against foreign firms that deal with a sanctioned party, extending the reach of their measures beyond their own borders.
Delisting. Listed people and companies can usually challenge a designation or apply for removal.

Why the effects are debated

Researchers and policymakers disagree about how well sanctions work, and the answer often depends on the goal.

Goals differ. Changing a government's policy is much harder than limiting its access to particular technology or signalling international disapproval.
Evasion. Targets may reroute trade through third countries, use front companies or turn to partners not applying the sanctions.
Costs. Sanctions can raise prices or reduce trade for the countries imposing them as well as the target.
Humanitarian impact. Broad measures can hurt ordinary people more than decision-makers.

Reading sanctions news

Check who imposed them and whether they are UN-wide or by one country or bloc.
Look at who is targeted: a whole country, a sector, or named individuals.
Note whether measures are new, extended or lifted. Many regimes are reviewed and renewed on a recurring basis.
Look for the official notice. Governments publish the legal text, which is usually more precise than headlines.

What would you like explained about how sanctions work? Ask your questions in the comments.