Economic sanctions are penalties imposed by a country or a group of countries on another country,
entity, or individual for foreign policy or security purposes. There are different types of economic
sanctions, depending on the scope, objective, and mechanism of the sanctions. Some of the
common types are:
Targeted sanctions: These are sanctions that aim to minimize the adverse effects on the general
population and the environment, and focus on specific individuals, entities, sectors, or activities that
are responsible for or involved in the undesirable behavior or conduct. Targeted sanctions can
include travel bans, asset freezes, arms embargoes, and trade restrictions on certain goods or
services. For example, the United States and the European Union have imposed targeted sanctions
on various officials, entities, and sectors in Russia, Iran, Syria, Venezuela, and other countries for
human rights violations, nuclear proliferation, terrorism, corruption, and other reasons.
Sectoral sanctions: These are sanctions that target a specific sector or industry of the economy of the
sanctioned country, such as energy, finance, defense, or transportation. Sectoral sanctions aim to
disrupt the economic activity and revenue of the targeted sector, and to create pressure on the
government or regime to change its policies or behavior. For example, the United States has imposed
sectoral sanctions on Iran’s oil, gas, petrochemical, and automotive industries, as well as its central
bank and other financial institutions, to curb its nuclear program and support for regional proxies.
Comprehensive sanction: These are sanctions that impose a total or near-total ban on trade,
investment, and other economic relations with the sanctioned country. Comprehensive sanctions are
the most severe and broadest form of economic sanctions, and they aim to isolate the country from
the global market and cause severe economic hardship and social unrest. Comprehensive sanctions
are often accompanied by diplomatic isolation and military intervention. For example, the United
States has maintained a comprehensive embargo on Cuba since 1962, prohibiting most trade, travel,
and financial transactions with the island nation, as well as supporting its political opposition and
dissidents.
What Are Economic Sanctions?, Council on Foreign Relations
Types of Economic Sanctions, Profolus
Economic sanctions, Wikipedia
How Economic Sanctions Work, Investopedia
CAMS Certification Package - 6th Edition, ACAMS
CAMS Certifications: How to Get CAMS Certified, ACAMS
Reference: https://www.cfr.org/backgrounder/what-are-economic-sanctions
