Embargoes are prohibitions on commerce and trade with specific countries imposed for safety, protectionist, or political reasons. There are three main types of embargoes: 1) Financial sanctions like freezing assets and funds; 2) Trade sanctions on products like arms, imports/exports, and other goods; 3) Trade sanctions on services including technical aid, investments, transport, travel, and insurance. Common goals of embargoes include preventing weapons from reaching sanctioned countries and hindering their economies. Examples provided include EU sanctions on Russia and US embargoes on Cuba and Syria.

1. EMBARGOES
•By Gayatri.S.M.
•Roll No. 08

2. Meaning of Embargoes
An embargo (derived from Spanish) is the partial
or complete prohibition of commerce and trade with a
particular country or a group of countries.
Embargoes also called as economic sanctions.
Objective:
i. For safety reasons.
ii. To protect our own farmersor workersfrom foreign
competition, or to pressureor punish another country .
iii. For political reasons.

3. TYPES OF EMBARGOS OR ECONOMIC
SANCTIONS:
Financial sanctions Trade sanctions Trade sanctions
products services
Freezing of funds Export-import embargoes
And other assets
Prohibition of technical
and financial aid
Investments
Prohibition of fulfillment
of claims
Transport
Travel restrictions
Insurance (Iran, Syria)

4. I. Financial sanctions – freezing of funds
and other assets
1.Asset Freeze
An asset freeze aims to prevent
an individual or entity from
gaining access to property or
other assets it may hold under
targeted country jurisdiction.
An asset freeze applies only to
property owned by named
individuals or entities, and is
often accompanied by other
financial prohibitions.

5. 2.Financial Prohibitions or freezing of
funds
Financial prohibitions can prohibit any person in the
sanctioned state from conducting financial
transactions with specific persons in embargo
country.
Equally, they may only target specific types of
financial transactions, or financial transactions with
listed individuals or organizations.
Exceptions may include transactions related to
humanitarian aid; transactions required to move
financial assets away from designated persons;
financial transactions required under pre-existing
contracts; and remittances between family
members. The specific exemptions are listed in the
regulations for each set of sanctions.

6. Example for financial sanction
European Union imposed embargo on Russia on 12th
September 2014
Finance prohibition :
Capital transactions:
EU prohibits loans to and trading or brokering of certain financial
instrument of 5 major state owned Russian banks ,(main target
Bank Rossiya ) 3 major defence companies and 3 major oil
companies i.e., Rosneft, Transneft and Gazprom Neft, the oil unit
of gas giant Gazprom.(But the gas industry, space technology and
nuclear energy are excluded from sanctions.)
ASSET freeze:
119 persons (24 of them added 12/9/14) and 23 entities subject to an
asset freeze and a visa ban. Freezes and bans may also be
imposed on those conducting transactions with Russia separatists.

7. II.Trade sanctions – products
Export import embargo imposed on
1.Arms and Related Materials
Embargo:
An arms embargo aims to prevent
weapons and military equipment from
leaving or reaching a targeted
country. It prohibits exporting and
importing arms and related materials
to and from the targeted country, and
may also prohibit communicating
technical data or financial
transactions related to military
activities.

8. For example:
The EU has an import sanction against
North Korea for arms and related material
and for items that can contribute to North
Korea’s nuclear-related, ballistic missile-
related or other weapons of mass
destruction-related programs. The above
mentioned goods cannot be imported from
North Korea. Imports of other goods from
North Korea are allowed.

9. 2.Export/Import Restrictions on other
products
Export and import restrictions aim
to hinder the economy, or specific
sectors of the economy, of the
targeted country. They typically
prohibit buying, selling or
shipping identified goods to or
from the country.
Exemptions may apply
to food; medical supplies; goods
used for public health purposes or
disaster relief; or goods required
under pre-existing contracts.

10. Example
US has an import and
export embargo against
Cuba and Syria. No good
can be imported to or from
Cuba or Syria.

11. III.Trade sanctions – services
•Prohibition of technical and financial aid
•Investments
•Prohibition of fulfillment of claims
•Transport
•Travel restrictions
•Insurance (Iran, Syria)

12. Technical Assistance Prohibition
Technical assistance prohibitions
aim to prevent a country
targeted by an arms embargo
or an export ban from
obtaining services and
information related to the
banned products. They typically
prohibit providing technical
data, training or other technical
assistance. Prohibitions on
technical assistance will usually
affect dealings with all persons
in the targeted country.

13. Example
Canadian Embargo on Iran
A prohibition on providing any technology to Iran
in respect of any activity related to ballistic missiles
capable of delivering nuclear weapons; uranium
enrichment, reprocessing or heavy water-related
activities, or to the development of nuclear weapon
delivery systems (products listed in the International
Atomic Energy Agency's Information Circulars
INFCIRC/254/Rev.12/Part 1 and
INFCIRC/254/Rev.9/Part 2 and UN Security Council
document S/2015/254.