Economic sanctions used by one or more countries to influence the economic activities of another country.
it targets a whole country or a specific industry or individuals like political figures, business owners or terrorist organizations.
Economic sanction can come in the form of
trade sanction,
financial sanction,
investment restrictions, or
travel ban
How does sanction work?
Let's use the United States versus Russia as a case study.
The United States sanctions Russia by blocking Russia banks from making financial transactions with American banks meaning if an American wants to send money to a Russian it's blocked and if a Russian wants to send money to an American it's blocked.
Since international trade is dollar dependent Russia banks will find it difficult to facilitate international financial transactions.
The United States also imposed restrictions on Russian energy companies which block Russia from selling its oil or gas to America and in most cases American allies also.
Since crude oil and gas is Russia's main export restricting this sector reduces IT'S income since it's a major income stream of Russia