Secondary sanctions are measures imposed by a country, typically the United States, targeting non-citizens or entities outside its jurisdiction for engaging in activities that conflict with its foreign policy or national security interests. Unlike primary sanctions, which directly target individuals or entities in a specific country (e.g., Iran or Russia), secondary sanctions focus on third parties—foreign companies, banks, or individuals—who conduct business with sanctioned entities.
For example, if a European company trades with a sanctioned Iranian entity, the U.S. might impose secondary sanctions, such as cutting the company off from the U.S. financial system, denying access to U.S. markets, or freezing its U.S.-based assets. These sanctions leverage the dominance of the U.S. dollar and financial system to enforce compliance globally, as many international transactions involve U.S. banks or the dollar.
Key features:
- Extraterritorial Reach: Apply to foreign entities not directly under U.S. jurisdiction.
- Coercive Tool: Encourage compliance by threatening economic isolation from U.S. markets or financial systems.
- Common Targets: Activities like supporting terrorism, human rights abuses, or trade with sanctioned regimes (e.g., Iran, North Korea, Russia).
- Impact: Can deter foreign businesses from engaging with sanctioned countries, amplifying the effect of primary sanctions.
Examples include U.S. sanctions on foreign banks dealing with Iran’s oil sector or penalties on Chinese firms supplying technology to Russia post-Ukraine invasion. Critics argue they infringe on other nations’ sovereignty, while proponents see them as vital for enforcing global norms.
