Annika Wanderer
Alan Szwajkowski
Merve Saf
What are Sanctions and Export Controls?
Sanctions and export controls are important instruments of international politics. Generally speaking, they should be used to respond to conflicts, human rights violations, or threats to security. Sanctions are meant to persuade states, organisations, or individuals to behave in a certain way without using military force. They can be imposed by international organisations such as the United Nations, the European Union but also by individual states such as the US and include measures such as trade restrictions, asset freezes or travel bans.
Sanctions can Take Various Forms
Sanctions vary in type and scope depending on the political objectives. They can include economic and financial restrictions, diplomatic measures or targeted sanctions against individuals. The most important types are:
- Economic sanctions: These include trade restrictions, embargoes on certain goods or services and restrictions on financial services.
- Financial sanctions: These include the freezing of assets or exclusion from international financial markets.
- Travel restrictions: These can include entry bans or the blocking of travel documents.
- Diplomatic sanctions: These include the reduction or severance of diplomatic relations.
Objectives of Sanctions
With its sanctions, the EU pursues the goal of promoting values such as democracy, the rule of law and human rights as well as maintaining peace and security. Its measures are aimed specifically at those responsible and not at the population of a country. Examples of EU sanctions include arms embargoes, economic restrictions and diplomatic measures. All sanctions are in line with obligations under international law.
Export Controls as a Complement
Export controls complement sanctions and regulate trade in strategically important goods. They relate to
- Armaments and weapons
- Dual-use goods (products with both civilian and military applications)
- Technologies and software with security relevance
Businesses are required to carefully check whether their products are subject to export restrictions. This assessment is based on the destination country, the recipient and the intended use of the goods.
The US often imposes extraterritorial sanctions that also affect companies outside its borders. These are based on laws such as the International Emergency Economic Powers Act and include far-reaching trade and financial restrictions. Such measures can have a global impact and pose a challenge for international companies.
Conclusion
Sanctions and export controls are essential instruments for securing international stability and enforcing political goals. They influence trade by regulating the export of certain goods and financial transactions. Companies must ensure that their processes comply with legal requirements in order to avoid legal and economic risks. Effective trade compliance management helps to identify trade restrictions and act in accordance with the rules, especially in the international business environment.
