Economic Sanctions and International Diplomacy
International Relations
- PYQs8
- Articles1
Background
This concept is crucial for understanding the instruments of international relations, the effectiveness and limitations of economic coercion, its humanitarian and economic implications, and the interplay between economic power and diplomacy in shaping global events and state behavior.
Economic sanctions are punitive measures imposed by one or more countries against a targeted country, entity, or individual to achieve specific foreign policy or national security objectives. They can range from trade restrictions and financial penalties to asset freezes and travel bans, aiming to exert pressure without resorting to military force.
Facts & tables
- Scope of Sanctions Lifted
- Termination of US unilateral sanctions, UN Security Council resolutions, and IAEA Board of Governors resolutions.
- Trade & Energy Impact
- Waivers for Iranian crude oil, petroleum products, derivatives, and associated services (banking, insurance, transportation).
- Financial Relief
- Release of frozen or restricted Iranian funds and assets, made fully usable for designated beneficiaries.
- Naval Blockade Removal
- Immediate removal of naval blockade and any disturbances against the Islamic Republic of Iran.
| Type | Reference |
|---|---|
| Conceptual area | International Relations |
| Body | Role |
|---|---|
| UNSC (United Nations Security Council) | Imposes/lifts multilateral sanctions through resolutions |
| US Department of Treasury | Issues waivers for oil exports and facilitates release of frozen funds |
| IAEA Board of Governors | Imposes/lifts resolutions related to nuclear program compliance |
Prelims angle
Prelims angle: Conceptual understanding
Prelims angle: Institutional roles and functions
- Sanctions as a foreign policy tool.
- Types: unilateral (US) vs. multilateral (UNSC, IAEA).
- Impact on trade (oil), finance (frozen assets).
- Role in diplomatic negotiations and conflict resolution.
- Economic reconstruction as a component of sanctions relief.
| Year | Framing tags |
|---|---|
| 2024 | Multi-statement analysis, Factual recall |
| 2024 | Statement-based questions, Factual recall |
| 2023 | Statement-based questions, Conceptual understanding |
| 2022 | Multi-statement analysis, Factual recall |
| 2022 | Multi-statement analysis, Institutional roles and functions |
| 2020 | Conceptual understanding, Institutional roles and functions |
| 2018 | Conceptual understanding, Policy measures |
| 2017 | Statement-based questions, Institutional roles and functions |
Timeline
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International Relations
Conceptual area
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Prelims 2017
Statement-based questions, Institutional roles and functions
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Prelims 2018
Conceptual understanding, Policy measures
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Prelims 2020
Conceptual understanding, Institutional roles and functions
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Prelims 2022
Multi-statement analysis, Factual recall
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Prelims 2022
Multi-statement analysis, Institutional roles and functions
-
Prelims 2023
Statement-based questions, Conceptual understanding
-
Prelims 2024
Multi-statement analysis, Factual recall
-
Prelims 2024
Statement-based questions, Factual recall
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Text of U.S.-Iran memorandum of understanding released by U.S.
The MOU details the comprehensive lifting of various economic sanctions against Iran, including those imposed unilaterally by the US and multilaterally by the UN and IAEA, highlighting sanctions as a key leverage point in international negotiations and their significant economic impact.
See also
Past papers
2017–2024 · 8 questions
In the news
Text of U.S.-Iran memorandum of understanding released by U.S.
The MOU details the comprehensive lifting of various economic sanctions against Iran, including those imposed unilaterally by the US and multilaterally by the UN and IAEA, highlighting sanctions as a key leverage point in international negotiations and their significant economic impact.
Try these PYQs
In India, why are some nuclear reactors kept under “IAEA Safeguards” while others are not?
IAEA safeguards are a set of technical safeguards applied by the IAEA to independently verify any nuclear facilities to check if it is not misused or deviated from peaceful uses. IAEA Safeguards are meant to understand if imported/enriched uranium is not used for non-peaceful purposes. New reactors under IAEA safeguards The decision will be based on the source of uranium.
Consider the following statements :
Statement-I: Recently, the United States of America (USA) and the European Union (EU) have launched the 'Trade and Technology Council'
Statement-II: The USA and the EU claim that through this they are trying to begin technological progress and physical productivity under their control.
Which one of the following is correct in respect of the above statement?
* Statement 1 is correct: Trade and Technology Council was launched by the the United States of America and the European Union during the EU-US Summit on 15 June 2021 in Brussels. * Statement 2 is incorrect: Trade and Technology council, the USA and EU does not aim to bring technological progress and physical productivity under their control. Rather the initiative intends to promote pooling of digital resources such as AI models and computing power, and make them available to partner countries to address challenges in areas such as climate change and extreme weather, healthcare or smart agriculture.
Consider the following statements:
Statement-I: Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.
Statement-II: Venezuela has the world's largest oil reserves.
Which one of the following is correct in respect of the above statements?
Statement-I: Incorrect. Venezuela continues to suffer from a severe economic crisis marked by hyperinflation, shortages of basic goods, and political instability. This crisis has led to a massive exodus of Venezuelans seeking better living conditions in neighboring countries and beyond. Statement-II: Correct. Venezuela indeed possesses the world's largest proven oil reserves, surpassing even Saudi Arabia. However, despite this vast resource wealth, economic mismanagement, corruption, and international sanctions have crippled its oil industry and hindered its ability to leverage this asset for economic recovery.
In the Indian context, what is the implication of ratifying the 'Additional Protocol' with the `International Atomic Energy Agency (IAEA)'?
India signed the Additional Protocol to the IAEA safeguards agreement on May 15, 2009. An additional protocol to the Safeguards Agreement between the Government of India and the IAEA for the Application of Safeguards to Civilian Nuclear Facilities entered into force on 25 July 2014. Hence option 1 is correct.
Consider the following statements:
Statement-I : Sumed pipeline is a strategic route for Persian Gulf oil and natural gas shipments to Europe.
Statement-II : Sumed pipeline connects the Red Sea with the Mediterranean Sea.
Which one of the following is correct in respect of the above statements?
Statement I is correct. The Sumed Pipeline is indeed a significant route for transporting oil and natural gas from the Persian Gulf to Europe. It bypasses the Suez Canal, offering an alternative path for these resources. Statement II is also correct. The Sumed Pipeline physically connects the Red Sea (where oil and gas are loaded onto ships from the Persian Gulf) with the Mediterranean Sea, providing a direct route for them to reach European ports. The connection between the Red Sea and the Mediterranean Sea established by the Sumed Pipeline directly explains its strategic importance for transporting oil and gas to Europe. Statement II provides the geographical context for how Statement I functions.
Show 3 more PYQs
With reference to the United Nations General Assembly, consider the following statements:
1. The UN General Assembly can grant observer status to the non-member States.
2. Inter-governmental organisations can seek observer status in the UN General Assembly.
3. Permanent Observers in the UN General Assembly can maintain missions at the UN headquarters.
Which of the statements given above are correct ?
Statement 1 is correct. The United Nations General Assembly may grant non-member states, international organizations, and other entities Permanent Observer Status. Statement 2 is correct. The General Assembly decided that observer status would be confined to States and intergovernmental organizations whose activities cover matters of interest to the Assembly. Statement 3 is correct. Permanent Observers may participate in the sessions and workings of the General Assembly and maintain missions at the UN Headquarters.
Consider the following statements:
1. The Nuclear Security Summits are periodically held under the aegis of the United Nations.
2. The International Panel on Fissile Materials is an organ of the International Atomic Energy Agency.
Which of the statements given above is/are correct?
Statement 1 is incorrect. The Nuclear Security Summits were not held under the UN. They were a series of international conferences initiated by the United States in 2010, outside of any formal international organisation. The summits brought together world leaders to discuss ways to secure nuclear materials and prevent nuclear proliferation. However, the summits haven't been held since 2016. Statement 2 is incorrect. The International Panel on Fissile Materials (IPFM) is an independent group of arms control and non-proliferation experts. It's not an organ of the International Atomic Energy Agency (IAEA). While the IAEA might collaborate with the IPFM on some issues, it's a separate entity.
With reference to the United Nations Convention on the Law of Sea, consider the following statements:
1. A coastal state has the right to establish the breadth of its territorial sea up to a limit not exceeding 12 nautical miles, measured from baseline determined in accordance with the convention.
2. Ships of all states, whether coastal or land-locked, enjoy the right of innocent passage through the territorial sea.
3. The Exclusive Economic Zone shall not extend beyond 200 nautical miles from the baseline from which the breadth of the territorial sea in measure.
Which of the statements given above are correct?
Statement 1 is correct: UNCLOS allows coastal states to define the breadth of their territorial sea up to a limit of 12 nautical miles, measured from a baseline established according to the Convention. Statement 2 is correct: UNCLOS guarantees the right of innocent passage for ships of all states, including coastal and land-locked nations, through the territorial sea of another state. Innocent passage refers to non-threatening travel that doesn't harm the coastal state's security or interests. Statement 3 is correct: UNCLOS sets the limit of the Exclusive Economic Zone (EEZ) at 200 nautical miles from the baseline used to measure the territorial sea. The EEZ grants the coastal state exclusive rights to explore, exploit, conserve and manage resources (living and non-living) within the zone. Hence, all three statements about the United Nations Convention on the Law of the Sea (UNCLOS) are correct.