Sanctions vary situationally, geographically and politically. As a result, there are different types of sanctions imposed, including but not limited to environmental, diplomatic, military and economic.
Sanctions and other restrictions can be imposed through some of the following measures:
Tariffs – a government-imposed tax on the import of goods and services from a country. This increase in price aims to make imports less desirable compared to domestic goods and services from other countries.
Quotas – limiting the number of goods that can be imported or exported from a country.
Asset freezes – the prevention of access to bank accounts and currency reserves, as well as the ability to block the sale of owned physical assets. This method is often associated with domestic inflation and currency devaluation when enforced on a large scale.
Trade embargoes – often referred to as ‘the most severe form of sanction’. This method involves an outright ban being enforced on specific trade with the sanctioned country.
These means of implementation apply to and affect the whole supply chain including the wider maritime industry. The onus is on the individual companies to ensure they are acting responsibly to mitigate the risk of sanctions evasion.
To learn more, click here