U.S. Sanctions: Overview for the 118th Congress

U.S. Sanctions: Overview for the 118th Congress

Updated March 4, 2024
U.S. Sanctions: Overview for the 118th Congress
U.S. Sanctions and Authorities
• State manages arms sales, diplomatic relations, visas,
U.S. sanctions in furtherance of foreign policy or national
military aid, and foreign aid;
security objectives are coercive economic or diplomatic
• Treasury regulates transactions, access to U.S.-based
measures taken against a target to bring about a change in
assets, use of the U.S. dollar and U.S. banking system,
behavior. In U.S. foreign policy and national security,
and the U.S. voice and vote in the international financial
sanctions can include trade embargoes; restrictions on
institutions; and
exports or imports; restrictions or outright denial of foreign
assistance, loans, or investments; blocking of foreign assets
• Commerce oversees export licensing and implements
under U.S. jurisdiction; prohibition on economic
controls coordinated with partner countries.
transactions that involve U.S. citizens or businesses; and
Other agencies have a role particular to their own missions.
denial of entry into the United States. Secondary sanctions
The Department of Justice prosecutes violations of
are sometimes used to put additional pressure on the
sanctions and export laws. The Department of Homeland
sanctions target. They seek to deter third parties from
Security oversees customs affecting importation and
engaging in activities with the primary target in order to
immigration. Both Justice and Homeland Security can offer
further restrict the availability of revenue that might be used
counsel on visas and entry into the United States. The
to advance malign intentions or evade sanctions altogether.
Department of Energy oversees international nuclear
The Role of the President
agreement obligations.
Most U.S. sanctions imposed for foreign policy or national
The Role of Congress
security reasons are based on national emergency
Congress has a role in defining the objectives for which
authorities. The President holds substantial decisionmaking
sanctions are applied. As part of this responsibility,
authority when sanctions are used in U.S. foreign policy. If
Congress enacts legislation to authorize, or in some
the sanctions are to be a part of a policy already identified
instances to require, the President to take action to address
by Congress in legislation, the President is to follow the
foreign policy and national security concerns. Congress has,
requirements of the relevant legislation. Thus, for example,
for example, taken the lead in writing into legislation the
sanctions imposed on Russia relating to its invasion of
authority or requirement for the President or executive
Ukraine, the death of Sergei Magnitsky, government
branch to use sanctions to address military coups d’état,
corruption, weapons proliferation, weapons trade with
weapons proliferation, international terrorism, illicit
Syria, election interference, or its relationship with North
narcotics trafficking, human rights abuses (including
Korea are based on legislative requirements. It remains,
however, the executive branch’s responsi
trafficking in persons or foreign states’ failure to uphold
bility to make
religious freedom), regional instability, cyber insecurity,
each determination under law that forms the Russia
corruption and money laundering, and events rising from
sanctions program.
specific regions or countries. Even when Congress
The President may also act as a sole decisionmaker by
authorizes the President to use sanctions, it often refers
determining that a situation poses an “unusual and
back to the national emergency framework for
extraordinary threat, which has its source in whole or
implementation.
substantial part outside the United States, to the national
security, foreign policy, or economy of the United States.”
Sanctions Regimes in 2024
In this process, the President declares that a national
The United States maintains an array of sanctions against
emergency exists, as provided for in the National
foreign governments, entities, and individuals, including
Emergencies Act (50 U.S.C. §§1601 et seq.), submits that
• countries whose governments are found to be the source
declaration to Congress, and publishes it in the Federal
of certain U.S. national security and foreign policy
Register to establish a public record. Under this national
threats, such as supporters of acts of international
emergency, the President further invokes the authorities
terrorism (Cuba, Iran, North Korea, Syria);
granted to his office in the International Emergency
Economic Powers Act (50 U.S.C. §§1701 et seq.) to
• individuals (including political and military leaders),
identify for whom U.S.-based assets are to be blocked or for
entities (including political groups and government
whom transactions are to be limited or prohibited.
entities), or sectors in certain countries or regions found
to engage in human rights abuses, corruption, the
The Role of the Executive Branch
undermining of democratic processes, terrorism,
In the executive branch, the responsibility to administer
activities that threaten peace and security, or a wide
sanctions resides throughout agencies and departments, but
range of other illicit activity (e.g., Afghanistan, Belarus,
primarily with the Departments of State, the Treasury, and
Burma, Central African Republic, China, Cuba,
Commerce:
Democratic Republic of the Congo, Ethiopia, Iran, Iraq,
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U.S. Sanctions: Overview for the 118th Congress
Lebanon, Libya, Mali, Nicaragua, North Korea, Russia,
individuals and firms would otherwise engage. U.S.
Somalia, South Sudan, Sudan, Syria, Venezuela, the
business groups have at various points raised concerns that
West Bank, Western Balkans, Yemen);
sanctions make the United States a less reliable partner.
•
They can harm American manufacturers, jeopardize
individuals or entities, globally, found to engage in
American jobs, and, when sanctions are implemented
human rights abuses, corruption, narcotics trafficking,
unilaterally, cede business opportunities to firms from other
international terrorism, illicit cyber activities, U.S.
countries. Imposing sanctions also risks retaliatory
election interference, weapons proliferation, hostage
measures. In 2014, for example, Russia’s retaliatory ban on
taking and wrongful detention of U.S. nationals, conflict
agricultural imports from countries imposing sanctions
diamond trade, or transnational crime; and
negatively affected Alaska’s seafood industry and
• governments, individuals, or entities found by the U.N.
Washington’s apple and pear growers. Since 2022, when
Security Council to be engaged in undermining
Russia’s expanded invasion of Ukraine resulted in more far-
international peace and security (Central African
reaching restrictions, the Russian government has
Republic; Democratic Republic of Congo; Guinea-
threatened to expropriate and nationalize foreign-owned
Bissau; Haiti; Iraq; Lebanon; Libya; North Korea; South
assets.
Sudan; Sudan; Yemen; Al Shabaab; the Taliban; the
Some policymakers assert that sanctions that restrict access
Islamic State, Al Qaeda, and their affiliates).
to the U.S. financial system could erode the status of the
The Economic Impact of Sanctions
U.S. dollar in the global economy. Since World War II, the
U.S. dollar has been widely used in international economic
Economic Impact on the Target
transactions, and the United States incurs economic benefits
The intended economic impact of U.S. sanctions varies
from its widespread use (including lower borrowing rates).
widely by design. Some sanctions are designed to have a
The United States has increasingly leveraged the role of the
broad, destabilizing effect on a target country’s economy in
U.S. dollar for foreign policy goals, including restricting
an effort to achieve significant changes in the government’s
sanctioned entities’ access to the U.S. dollar and financial
behavior or even a change in government. Sanctions on Iran
markets. Such moves have prompted foreign governments
and Russia, for example, target key revenue-producing
targeted by U.S. financial sanctions to explore ways to
sectors in their economies, the central bank, and access to
reduce their reliance on the U.S. dollar and pivot to
the U.S. financial market, which is widely used to conduct
alternative currencies.
international transactions. Likewise, sanctions on major
Despite challenges in crafting an effective sanctions regime,
foreign companies can have broad economic consequences
in the target’s economy
some policymakers consider sanctions to be effective when
.
used in concert with diplomacy, when the right balance of
pressure and promise of improved relations is found, and
Other sanctions are designed to place economic pressure on
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 U.S.-based assets of the Venezuelan President’s
The 118th Congress continues to evaluate how sanctions fit
spouse, for example, likely does not have broad effects on
in critical foreign policy and national security decisions and
the Venezuelan or U.S. economy, but is intended to put
affect U.S. economic interests. Sanctions are involved in
pressure on the Nicolás Maduro government to change its
the debates over how to convince Russia to leave Ukraine;
behavior. Other sanctions’ targets are focused on disrupting
deter Iran’s missile proliferation activities, as well as its
illicit activities or networks rather than more broad-based
support for Russia’s military and armed proxies in the
economic activity. When sanctions target a non-state illicit
Middle East; address challenges related to malicious cyber-
group (e.g., a transnational criminal organization or foreign
enabled activities and cryptocurrency; seek a cessation of
terrorist organization), blocking a shell company or key
violence and return to democratic governance in Burma;
financial facilitator could disrupt a group’s ability to
end belligerence of North Korea; deter multiple foreign
operate without harming broader global economic trends.
adversaries from disrupting U.S. elections; end conflict in
The economic impact of a sanction can depend on the
Syria and Yemen (while also quelling maritime insecurity
extent to which the target is able to circumvent or adapt to
perpetrated by the Houthis); find viable peace among
the sanction. Facing U.S. sanctions, for example, the
Israelis and Palestinians amid conflict with Hamas; support
Maduro government of Venezuela sought closer economic
democratic institutions in Venezuela; advance human rights
ties with China and Russia. Similarly, the Russian
and democratic aspirations in Cuba while containing its
government has used its own resources to offset the loss of
government as a state sponsor of terrorism; and defend
markets for its designated firms. Sanctions may have less of
against China’s coercive activities in critical economic
an effect on countries with fewer ties to the U.S. economy.
sectors, among other concerns.
It is more difficult for sanction targets to find alternative
(This product draws on information previously authored by
markets when sanctions are imposed multilaterally, such as
Dianne E. Rennack and Edward J. Collins-Chase.)
under auspices of the U.N. Security Council, than when
sanctions are imposed unilaterally.
Liana W. Rosen, Specialist in International Crime and
Economic Impact on the United States
Narcotics
Sanctions impose economic costs for the United States.
Rebecca M. Nelson, Specialist in International Trade and
They can restrict economic transactions in which U.S.
Finance
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U.S. Sanctions: Overview for the 118th Congress

IF12390

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