Sanctions

The US Department of Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries, individuals, entities and regimes. "Unless licensed by Treasury’s Office of Foreign Assets Control (OFAC), goods, technologies or services generally may not be exported, re-exported, sold or supplied, either directly or indirectly, from the United States or by a US person, wherever located, to any sanctioned country, person or entity.

Economic sanctions administered by OFAC are classified as either “country-based” or “list-based” programs. Country-based economic sanctions programs prohibit almost all transactions between US persons and the targeted country. The prohibition extends to transactions between US persons and the targeted country’s representatives or state-owned companies, and, in some cases, citizens no matter where located. List-based economic sanctions programs prohibit transactions between US persons and specific individuals and entities allegedly engaged in disfavored activities, including narcotics trafficking, international terrorism and proliferation of weapons of mass destruction. The targets of these programs are designated as “Blocked Persons” and are listed on the “Specially Designated Nationals and Blocked Persons List.”

Authority

These programs get their authority primarily from the International Emergency Economic Powers Act, which provides the President with sweeping powers that may be exercised to deal with any unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, or economy of the United States, if the President declares a national emergency with respect to such threat.  In that event, the President has the power to:

• Investigate, regulate, or prohibit any transactions in foreign exchange; transfers of credit or payments between, by, through, or to any banking institution, to the extent that such transfers or payments involve any interest of any foreign country or a national thereof; the importing or exporting of currency or securities, by any person, or with respect to any property, subject to the jurisdiction of the United States;  

• Investigate, block during the pendency of an investigation, regulate, direct and compel, nullify, void, prevent or prohibit, any acquisition, holding, withholding, use, transfer, withdrawal, transportation, importation or exportation of, or dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property in which any foreign country or a national thereof has any interest by any person, or with respect to any property, subject to the jurisdiction of the United States; and,

• When the United States is engaged in armed hostilities or has been attacked by a foreign country or foreign nationals, confiscate any property, subject to the jurisdiction of the United States, of any foreign person, foreign organization, or foreign country that he determines has planned, authorized, aided, or engaged in such hostilities or attacks against the United States; and all right, title, and interest in any property so confiscated shall vest, when, as, and upon the terms directed by the President, in such agency or person as the President may designate from time to time, and upon such terms and conditions as the President may prescribe, such interest or property shall be held, used, administered, liquidated, sold, or otherwise dealt with in the interest of and for the benefit of the United States, and such designated agency or person may perform any and all acts incident to the accomplishment or furtherance of these purposes.

Application

US Presidents have invoked IEEPA fairly consistently since 1990, at a rate of about 6 declarations of national emergency or executive orders per year.  These emergencies last more than nine years on average.  Between 1979 and 2024, there were an average of 15 national emergencies ongoing each year, with the longest one declared by President Carter stemming from the situation in Iran.

Example

With respect to Russia, US government foreign policy and national security goals include deterring Russian aggression in Ukraine and against other countries; malicious cyber-enabled activities; influence operations;  election interference; human rights abuses; corruption; the use of chemical or other weapons; the use of energy exports as a coercive or political tool; proliferation and other illicit trade with North Korea and Iran; and, support to the governments of Syria and Venezuela.  A summary of actions under IEEPA taken against Russia follows below: