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Lesson 10 min 20 XP

Types of Sanctions

From targeted asset freezes to full trade embargoes — understanding the sanctions toolkit.

The Sanctions Spectrum

Economic sanctions range from narrow, targeted measures to comprehensive embargoes that cut off virtually all economic contact. Understanding the types is essential to evaluating whether sanctions are appropriate in any given situation.

Comprehensive sanctions restrict nearly all trade and financial transactions with a target country. The US embargo on Cuba, in place since 1962, is the most enduring example. These 'blunt instrument' sanctions have fallen out of favor because they devastate civilian populations while often failing to change regime behavior.

Targeted (or 'smart') sanctions focus on specific individuals, entities, or sectors. Asset freezes prevent designated individuals from accessing their money. Travel bans restrict their movement. Sectoral sanctions target key industries — Russia's energy sector, for instance — while attempting to minimize harm to ordinary citizens.

Secondary sanctions are perhaps the most controversial: they penalize third-party countries and companies that do business with the sanctioned target. When the US threatens to cut off foreign banks from the dollar system for trading with Iran, that is a secondary sanction.