Sanctions are actions taken by countries to harm another country's economy in order to force political change. Economic sanctions can include trade embargoes, asset freezes, bans on financial transactions, restrictions on technology and travel. Sanctions can target entire countries, specific industries, or individuals. While sanctions aim to pressure governments, they often negatively impact ordinary citizens through unemployment and reduced access to goods. Sanctions may have unintended consequences like increasing costs, weakening economies, and creating political instability. Their effectiveness is debated as humanitarian needs still must be addressed and third parties can be affected.

1. How Sanction Affects the
Economy ?
-DAVID MOSES

2. What is Sanction ?
• Any actions taken by one/group of nations to harm
economy of another nation or group, often to force
a political change.
• For example, sanctions may be applied to countries
which develop weapons of mass destruction, violate
human rights or trade unfairly.
• Economic sanctions may include trade embargoes
or boycotts, freezing of assets, bans on cash
transfers, bans on technology transfer and
restrictions on travel.

3. EAR ITAR OFAC

4. Sanction Can Take Many Forms

5. Targeted Sanction
While the goals of sanctions are to force a country to alter its
behavior, there is much variation as to how the sanctions are leveled and
whom they target.
• Can target a country as a whole
• Can target specific industries
• Can also target individuals

8. Sanction Process
• Sanctions resolutions must pass the fifteen-member Council
by a majority vote and without a veto from any of the five
permanent members.
• Sanctions policies must receive unanimous consent from
member states in the Council of the European Union, the
body that represents EU leaders.
• The United States uses economic and financial sanctions
more than any other country. Sanctions policy may originate
in either the executive or legislative branches.

9. Impact on Sanction
1) It could have a crippling effect.
2) Sort of political and economic instability.
3) More totalitarian regime.
4) Creates a failed state due to a power vacuum.
5) Can increase costs to consumers and businesses.
6) Targeted country is unable to purchase goods
7) Resulting in economic loss through unemployment, as well as production loss.

10. Problem on Sanction ?
• The impact of sanctions is often felt by poor, innocent civilians and not the
intended government officials.
• A trade embargo is most likely to affect a subsistence farmer who cannot sell
his crops for export or a worker in a factory that is unable to receive raw
materials.
• Sanctions will exclude humanitarian items such as medicines.

11. Famous Sanctions
 By targeted country
• Sanctions against Iran
• Sanctions against Burma
• Sanctions against North Korea
• Sanctions against Russia
 By targeted individuals
United Nations sanction imposed against all Al-Qaida- and Taliban associated individuals
 By targeted activity
Russian hacking and interference with the 2016 U.S. elections, sanction in response to
cyber activity that threatens democratic elections.

12. Indicators of Iran

13. Conclusion
Traditionally, sanctions prohibit only a home country’s or region’s
corporations and citizens from doing business with a blacklisted entity. However,
extraterritorial sanctions are designed to restrict the economic activity of
governments, businesses, and nationals of third countries.
As a result, many governments consider these sanctions a violation of
their sovereignty and international law.

14. THANKS FOR YOUR
ATTENTION