April 27, 2023
U.S. Sanctions: Overview for the 118th Congress
U.S. Sanctions and Authorities
departments, but primarily with the Departments of State,
U.S. sanctions in furtherance of foreign policy and national
the Treasury, and Commerce:
security objectives are coercive economic and/or diplomatic
the State Department manages arms sales, diplomatic
measures taken against a target to bring about a change in
relations, visa issuance, military aid, and foreign aid;
behavior. In U.S. foreign policy and national security,
sanctions can include such measures as trade embargoes;
Treasury regulates transactions, access to U.S.-based
restrictions on particular exports or imports; denial of
assets, use of the U.S. dollar and U.S. banking system,
foreign assistance, loans, and investments; blocking of
and the U.S. voice and vote in the international financial
foreign assets under U.S. jurisdiction; prohibition on
institutions; and
economic transactions that involve U.S. citizens or
businesses; and denial of entry into the United States.
Commerce oversees export licensing and implements
Secondary sanctions are sometimes used to put additional
controls coordinated with partner countries.
pressure on the sanctions target. They penalize third parties
To a lesser extent, other agencies have a role particular to
engaged in activities with the primary sanctions target that
their own missions. The Department of Justice prosecutes
undermine or evade the purpose of the sanctions regime.
sanctions evasion and violations of sanctions and export
laws. The Department of Homeland Security oversees
The Role of the President
customs affecting importation and has a supporting role to
Most U.S. sanctions imposed for foreign policy or national
the State Department in visa issuance. The Department of
security reasons are based on national emergency
Energy has a role in overseeing obligations under
authorities. The President, for a variety of reasons related to
international nuclear agreements.
constitutional interpretations and related legal challenges
throughout U.S. history, holds substantial decisionmaking
The Role of Congress
authority when sanctions are used in U.S. foreign policy. If
Congress has a role in defining the objectives to which
the sanctions are to be a part of a policy already identified
sanctions are applied. As part of this responsibility,
by Congress in legislation, the President is to follow the
Congress enacts legislation to authorize, or in some
requirements of the relevant legislation. Thus, for example,
instances to require, the President to take action to address
sanctions imposed on Russia relating to its invasion of
foreign policy and national security concerns. Congress has,
Ukraine, the death of Sergei Magnitsky, government
for example, taken the lead in writing into legislation the
corruption, weapons proliferation, weapons trade with
authority for the President or executive branch to use
Syria, election interference, and sanctions violations
sanctions to address military coups d’état, weapons
relating to North Korea are based on legislative
proliferation, international terrorism, illicit narcotics
requirements. It remains, however, the executive branch’s
trafficking, human rights abuses (including trafficking in
responsibility to make each determination under law that
persons and foreign states’ failure to uphold religious
forms the Russia sanctions regime. Determinations are
freedom), regional instability, cyber insecurity, corruption
based on national emergency authorities, sometimes in
and money laundering, and events rising from specific
support of international treaty obligations.
regions or countries, including Russia, North Korea, and
Iran.
The President may also act as a sole decisionmaker by
determining that a situation poses an “unusual and
Most often, however, even when Congress authorizes the
extraordinary threat, which has its source in whole or
President to use sanctions, it refers back to the national
substantial part outside the United States, to the national
emergency framework for implementation.
security, foreign policy, or economy of the United States.”
In this process, the President declares that a national
Sanctions Regimes in 2023
emergency exists, as provided for in the National
The United States maintains an array of sanctions against
Emergencies Act (50 U.S.C. §§1601 et seq.), submits that
foreign governments, entities, and individuals, covering
declaration to Congress, and publishes it in the Federal
Register to establish a public record. Under this national
foreign governments it has identified as supporters of
emergency, the President further invokes the authorities
acts of international terrorism (Cuba, Iran, North Korea,
granted to his office in the International Emergency
Syria); nuclear arms proliferators (Iran, North Korea,
Economic Powers Act (50 U.S.C. §§1701 et seq.).
Syria); egregious violators of international human rights
norms, democratic governance, or corruption standards
The Role of the Executive Branch
(Belarus, Burundi, Central African Republic, Cuba,
In the executive branch, the responsibility to implement and
Democratic Republic of the Congo, Iran, Libya,
administer sanctions resides throughout agencies and
Nicaragua, North Korea, Russia, Somalia, South Sudan,
Syria, Venezuela, Western Balkans, Yemen, Zimbabwe,
https://crsreports.congress.gov
U.S. Sanctions: Overview for the 118th Congress
and the Hizbollah organization); and those threatening
American jobs, and, when sanctions are implemented
regional stability (Iran, North Korea, Russia, Syria);
unilaterally, cede business opportunities to firms from other
countries. Imposing sanctions also risks retaliatory
individuals and entities found to be active in egregious
measures. In 2014, for example, Russia’s retaliatory ban on
human rights abuses and corruption within the state
agricultural imports from countries imposing sanctions
system, international terrorism, election interference,
negatively affected the Alaskan seafood industry and
intelligence-sector overreach, illicit narcotics
Washington State apple and pear producers. Further, in
trafficking, weapons proliferation, illicit cyber activities,
2022, when Russia’s full-blown invasion of Ukraine
conflict diamond trade, and transnational crime; and
resulted in more far-reaching restrictions, the Russian
individuals and entities found/determined to meet the
government threatened to expropriate foreign-owned assets.
requirements of the United Nations Security Council
(Central African Republic, Democratic Republic of
Policymakers have expressed longer-term concerns that
Congo, Eritrea, Guinea-Bissau, Haiti, Iraq, Lebanon,
extensive use of U.S. sanctions that restrict access to the
Libya, Mali, North Korea, Somalia, South Sudan,
U.S. financial system could erode the status of the U.S.
Sudan, Yemen, and individuals affiliated with the
dollar in the global economy. Since World War II, the U.S.
Islamic State [Da’esh], al-Qaida, or the Taliban).
dollar has been widely used in international economic
transactions, and the United States incurs economic benefits
The Economic Impact of Sanctions
from its widespread use (including lower borrowing rates).
The United States has increasingly leveraged the role of the
Economic Impact on the Target
U.S. dollar for foreign policy goals, including restricting
The intended economic impact of various U.S. sanctions
access to the U.S. dollar and financial markets for Iran,
varies widely by design. Some sanctions are designed to
Russia, and Venezuela. Many foreign governments targeted
have a broad, destabilizing effect on a target country’s
by U.S. financial sanctions and their economic partners are
economy, in an effort to seek significant changes in the
increasingly exploring and creating ways to reduce their
government’s behavior or even a change in government.
reliance on the U.S. dollar. If countries pivot from the U.S.
Sanctions on Iran and Russia, for example, target the key
dollar to alternative currencies, the United States could face
revenue-producing sector in the economy (energy exports),
higher borrowing costs, among other economic effects.
the central bank, and access to the U.S. financial market,
which is widely used to conduct international transactions.
Despite the challenges to crafting an effective sanctions
Likewise, sanctions on major foreign companies can have
regime, some policymakers consider that the tool can be
broad economic consequences in the target’s economy.
effective when used in concert with diplomacy, when the
right balance of pressure and promise of improved relations
Other sanctions are designed to place economic pressure on
is struck, and when used as part of a multinational effort.
key decisionmakers while minimizing collateral damage for
the target country’s citizens and U.S. economic interests.
Issues to Watch for in the 118th Congress
Freezing the U.S. assets of the wife of Venezuelan
With U.S. sanctions being used as a policy tool in relation
President Maduro, for example, likely does not have broad
to multiple ongoing geopolitical events, the 118th Congress
effects on the Venezuelan or U.S. economy, but is intended
may face early deliberations on how sanctions fit in critical
to put pressure on the Maduro government to change its
foreign policy and national security decisions and affect
behavior. Other sanctions’ targets are more symbolic than
U.S. economic interests. Sanctions are central to the debates
disruptive of ongoing economic activities. It is not clear, for
over how to convince Russia to leave Ukraine; deter Iran’s
example, that the Russian organization Night Wolves (a
missile proliferation activities and its support for Russia’s
pro-Kremlin motorcycle club) had significant economic
military; address challenges related to malicious cyber-
relationships with the United States before it was
enabled activities and cryptocurrency; support a return to
designated for sanctions.
democratic governance in Burma; normalize relations with
North Korea while ensuring an end to its nuclear and
The economic impact of a sanction also depends on the
missile programs; deter multiple foreign adversaries from
extent to which the target is able to circumvent or adapt to
disrupting U.S. elections; end the conflicts in Yemen and
the sanction. Facing U.S. sanctions, for example, the
Syria; stabilize and support democratic institutions in
Maduro government of Venezuela sought closer economic
Venezuela; approach Cuba as a newly designated state
ties with China and Russia, and the Russian government
sponsor of international terrorism; and defend against
used resources to support sanctioned firms and strengthen
China’s use of its private sector to strengthen its military,
domestic industrial capacities. It is more difficult for
intelligence, and security apparatuses.
sanction targets to find alternative markets when sanctions
are imposed multilaterally, such as through the United
(This product draws on information provided in CRS In
Nations Security Council, than when sanctions are imposed
Focus IF11730, Economic Sanctions: Overview for the
unilaterally.
117th Congress, by Dianne E. Rennack and Rebecca M.
Nelson.)
Economic Impact on the United States
Sanctions also impose economic costs for the United States
Edward J. Collins-Chase, Analyst in Foreign Policy
because they restrict economic transactions in which U.S.
Rebecca M. Nelson, Specialist in International Trade and
individuals and firms would otherwise engage. U.S.
Finance
business groups have at various points raised concerns that
IF12390
sanctions harm American manufacturers, jeopardize
https://crsreports.congress.gov
U.S. Sanctions: Overview for the 118th Congress
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF12390 · VERSION 1 · NEW