Sectoral Sanctions

Sectoral sanctions target specific industries or sectors within a country's economy rather than imposing a blanket prohibition on the entire country. The most prominent example is the Russia sectoral sanctions program, which restricts transactions in Russia's financial services, energy, and defense sectors under Directives 1 through 4.

How sectoral sanctions differ from comprehensive sanctions

Comprehensive sanctions (Cuba, Iran, North Korea) prohibit virtually all transactions. Sectoral sanctions are narrower — they target specific types of transactions (e.g., long-term debt financing, oil exploration technology) with specific entities (the Sectoral Sanctions Identifications List, or SSI List). Transactions outside the targeted sectors may remain permissible.