International Sanctions (Restrictive Measures)

International sanctions are foreign policy measures aiming at supporting the maintenance or restoration of peace, international security, democracy and the rule of law, respect for human rights and international law or achieving the goals of the Charter of the United Nations or the common goals of the joint foreign policy of the European Union. A more detailed review on international sanctions is available at the Ministry of Foreign Affairs.

The main objective of imposing sanctions is to make third countries or sanctioned individuals respect principles and standards of international law, to make the continuation of sanctioned activities as expensive and inconvenient as possible and to prevent unacceptable operations of the sanctioned addressees. 

In the terminology of the European Union, the two notions used are “sanctions“ and  “restrictive measures“.

To whom or against whom are international sanctions imposed?

International sanctions are imposed to or against countries, regimes, organisations, institutions, units and private individuals or in relation to condemned activities.

As of 2019, over 40 sanctions regimes have been imposed (incl. sanctions imposed by decisions of the Council of the European Union and the United Nations Security Council). Names of sanctions regimes indicate the bases of imposing sanctions and sanctioned private individuals, units and institutions are listed in the appendix to the sanction imposing legal act (decision and/or regulation of Council).

Some sanctions regimes contain obligations and bans that are not directly related to particular individuals but rather to certain activities (e.g. restrictive measures in response to the unlawful annexation of Crimea and Sevastopol). There are also sanctions regimes which have been imposed as preventive measures. 

EU sanctions against Russia

The European Union has imposed massive and unprecedented sanctions against Russia in response to the war of aggression against Ukraine. What sanctions has the EU adopted so far and how is the EU’s trade with Russia being sanctioned is explained on the website of the Council of the European Union and the European Council website.

Consolidated text: Council Regulation (EU) No 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine.

Who imposes international sanctions? By which legal act?

International sanctions are imposed by the United Nations Security Council resolutions (United Nations Charter 7 article 41), the Council of the European Union decisions and regulations (European Union Agreement article 29) or a country (e.g. the Government of the Republic of Estonia International Sanctions Act, article 7).

In theory, other international organisations whose decisions are binding to Estonia, could impose international sanctions.

Who implements international sanctions in the European Union? By which legal acts?

International sanctions in the European Union are regulated by the Council of the European Union with representative ministers from Member States who meet in ten different staffs. The Council adopts regulations pursuant to Article 215 of the Treaty on the Functioning of the European Union. Regulations of the Council are directly applicable in all Member States or they have the same effect as national legal acts, e.g. laws and regulations. 

Decisions of the Council cover all imposed restrictive measures. The Council is in no position to impose regulations for implementing such restrictive measures which remain outside areas of competence delegated to the European Union by its Member States (e.g. prohibition on entry and arms embargo). Within the competence of the Member States, international sanctions are implemented in accordance with national law. 

In addition to the sanctions regimes imposed by the European Union (autonomous sanctions) sanctions imposed by the United Nations Security Council are implemented in the European Union in accordance with the decisions and regulations of the Council of the European Union. 

Who implements international sanctions in Estonia? By which legal acts?

Decisions of the Council of the European Union are implemented in Estonia under directly applicable regulations of the Council and Estonian national legal acts. Such Estonian national legal acts are primarily International Sanctions Act, Strategic Goods Act, Weapons Act, Obligation to Leave and Prohibition on Entry Act, Customs Act and Penal Code. Sanctions can be implemented under any legal act which regulates the area in which international sanctions have been imposed (e.g. Intra-Community Transport, Export and Import of Cultural Objects Act in the case of cultural collaboration restrictions).

If it is impossible to implement an international sanction in accordance with current national legislation, the government must adopt an additional national legal act according to International Sanctions Act article 8, section 1. 

What are the most common types of sanctions?

1. Obligation to freeze assets and prohibition on making them available (financial sanction)

The objective of freezing financial and economic resources is to prevent sanctioned individuals, groupings, entrepreneurs and units from gaining access to the European Economic Area. In order to meet this objective, public and private participants of the European Union must freeze the financial and economic resources of the sanctioned individuals which are at their disposal until the sanctions are lifted. 

Freezing assets means that sanctioned individuals cannot access their financial resources in the European Union (incl. cash, cheques, bank savings, shares) or realize them. Neither are they permitted to sell or rent other material or immaterial assets, including real estate. Freezing does not mean confiscating assets – sanctioned individuals, units or institutions retain ownership. 

In certain cases competent state authorities can allow exceptions to the obligation to freeze assets and under some circumstances making exceptions are mandatory. Exceptions include expenditure on basic needs (food, rent, medication, taxes) or legal aid costs to a reasonable extent.

Prohibition on making assets available means that the residents, companies or public actors of the European Union are not permitted to make financial or economic resources available to sanctioned individuals or units directly or indirectly.
Monitoring of financial sanctions is conducted by the Money Laundering Data Bureau of the Police and Border Guard Board.

2. Prohibition on entry

As a rule, prohibition on entry will be imposed with exceptions for humanitarian reasons (e.g. health issues, necessity for hospital care in the EU) or for enabling the Member States of the European Union to fulfil their obligations under international law or to conduct legal proceedings. Member States can also make exceptions regarding several sanctions regimes from prohibition to entry if there are international organisations located on their territories or events are organised in the framework of the activities of an international organisation. 

Under the Constitution, citizens of Estonia are always entitled to enter the territory of Estonia, hence prohibition on entry will not prevent citizens from entering. Also, sanctions regimes do not oblige Member States to prohibit their citizens from entering their own territories. 

Implementation of Prohibition on entry sanctions is monitored by the Ministry of the Interior. Search can be found here: Entry ban search.

3. Arms embargo

An arms embargo is aimed at preventing arms, military goods and military equipment originating from the EU to get to sanctioned countries or sanctioned individuals to prevent their use in conflicts and to prevent the development of military industries in the sanctioned countries. Member States must ensure that arms and related materials are not exported to sanctioned individuals or countries. Sometimes import or procurement from sanctioned territories are prohibited. Consequently, the provision of technical aid, forwarding of information, military action-related financial transactions and other services may be prohibited.

In addition to an arms embargo, the export of equipment which can be used for internal repressions may be prohibited. It includes police equipment (vehicles equipped with water cannons, vehicles for transporting prisoners, barbed wire and helmets and shields for the riot police). The export of dual-use items to countries of destination may be prohibited (to be used for civilian and military purposes).

The issuing, extending and revocation of authorization for import and export licences for the import, export and transit to the third countries through the territory of Estonia of these goods will be conducted by interdepartmental Strategic Goods Commission established by the order of the Government of the Republic.

What other types of sanctions are there?

There is no complete list of prospective international sanctions, because sanctions change over time. In addition to above-mentioned typical sanctions, entrance to ports, no-fly zones, export-import bans (e.g. raw materials, timber, luxury goods, fuel, cultural goods, gold, precious metals etc.), investments, payments and prohibitions on capital movements, restrictions on tourism, defence-related collaboration and education can be imposed.