International Economic Sanctions
International Relations
- PYQs8
- Articles1
Background
UPSC candidates need to understand the role of economic sanctions as a foreign policy tool, their effectiveness, ethical implications, and impact on global trade, energy security, and the international financial system. India's foreign policy often navigates complex geopolitical landscapes influenced by sanctions.
International economic sanctions are coercive measures adopted by states or international organizations to influence the behavior of target states, often involving restrictions on trade, finance, or travel. They serve as a non-military tool of foreign policy to achieve diplomatic or security objectives, ranging from counter-terrorism to human rights protection.
Facts & tables
- Mechanism
- Sanctions involve restrictions on financial transactions, trade, or access to assets, often targeting key economic sectors like oil exports.
- Asset Freezes
- A common form of financial sanction, asset freezes restrict a target country's access to its funds held in foreign banks or financial institutions.
- Context
- The article discusses the release of Iranian oil revenues, previously frozen due to US sanctions, held in restricted accounts in Qatar.
- Relief Complexities
- Disputes often arise regarding the terms, mechanisms, and end-use of funds during sanction relief, highlighting the complexities of such agreements.
| Type | Reference |
|---|---|
| Conceptual area | International Relations |
| Conceptual area | International Law |
| Body | Role |
|---|---|
| United States Department of the Treasury | Imposes and enforces sanctions |
| Central Banks (e.g., Qatar Central Bank, Central Bank of Iran) | Manage and hold frozen assets; facilitate transactions |
| United Nations Security Council | Can impose multilateral sanctions |
Prelims angle
Prelims angle: Statement-based questions
Prelims angle: Factual recall
- Sanctions are non-military foreign policy tools to influence state behavior.
- Asset freezes restrict access to funds in foreign banks.
- Often target key economic sectors like oil exports.
- Sanction relief involves complex negotiations on fund usage.
- Impacts global trade, finance, and energy security.
| Year | Framing tags |
|---|---|
| 2026 | Factual recall, Multi-statement analysis |
| 2024 | Multi-statement analysis, Factual recall |
| 2024 | Statement-based questions, Factual recall |
| 2023 | Statement-based questions, Factual recall |
| 2023 | Factual recall, Multi-statement analysis |
| 2022 | Multi-statement analysis, Institutional roles and functions |
| 2018 | Factual recall, Terminology-based question |
| 2016 | Statement-based questions, Factual recall |
Timeline
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International Relations
Conceptual area
-
International Law
Conceptual area
-
Prelims 2016
Statement-based questions, Factual recall
-
Prelims 2018
Factual recall, Terminology-based question
-
Prelims 2022
Multi-statement analysis, Institutional roles and functions
-
Prelims 2023
Statement-based questions, Factual recall
-
Prelims 2023
Factual recall, Multi-statement analysis
-
Prelims 2024
Multi-statement analysis, Factual recall
-
Prelims 2024
Statement-based questions, Factual recall
-
Prelims 2026
Factual recall, Multi-statement analysis
-
Iran says to use frozen funds in Qatar to buy ‘required goods’
International economic sanctions are non-military foreign policy tools used to influence target states, often involving asset freezes and trade restrictions. The article highlights the complex process of sanction relief and the disputes over the use of released funds, particularly Iranian oil revenues.
See also
Past papers
2016–2026 · 8 questions
In the news
Iran says to use frozen funds in Qatar to buy ‘required goods’
International economic sanctions are non-military foreign policy tools used to influence target states, often involving asset freezes and trade restrictions. The article highlights the complex process of sanction relief and the disputes over the use of released funds, particularly Iranian oil revenues.
Try these PYQs
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.
Consider the following pairs :
Regions : often Reason for being in news
1. North Kivu and Ituri : War between Armenia and Azerbaijan
2. Nagorno-Karabakh : Insurgency in Mozambique
3. Kherson and Zaporizhzhia : Dispute between Israel and Lebanon
How many of the above pairs are correctly matched ?
None of the pairs (1, 2, or 3) are correctly matched. Let's break it down: 1. North Kivu and Ituri: This region in the Democratic Republic of Congo experiences conflict, but is not related to the war between Armenia and Azerbaijan. 2. Nagorno-Karabakh: This enclave is disputed between Armenia and Azerbaijan, but the insurgency is happening in Mozambique. 3. Kherson and Zaporizhzhia: These are currently under heavy fighting in the Russia-Ukraine war, not a dispute between Israel and Lebanon.
Consider the following pairs :
Country | Reason for being in the news|
|- | -|
|1. Argentina | Worst economic crisis|
|2. Sudan | War between the country's regular army and paramilitary forces|
|3. Turkey | Rescinded its membership of NATO|
How many of the pairs given above are correctly matched?
* Argentina - Worst economic crisis: Correct. Argentina has been facing a severe economic crisis for a while, marked by high inflation, debt, and poverty. * Sudan - War between the country's regular army and paramilitary forces: Correct. Sudan has been engulfed in a violent conflict between the Sudanese Armed Forces and the paramilitary Rapid Support Forces. * Turkey - Rescinded its membership of NATO: Incorrect. Turkey has not rescinded its membership of NATO. While there have been tensions between Turkey and other NATO members, it remains a member. _Therefore, only two out of the three pairs are correctly matched._
The term "two-state solution" is sometimes mentioned in the news in the context of the affairs of -
The Two-State Solution is used in the context of the Israel-Palestine issue. It envisages an independent State of Palestine alongside the State of Israel west of the Jordan River.
Consider the following statements regarding the India-Africa Forum Summit (IAFS):
1. The summit held in 2015 marked the third edition of the IAFS.
2. The IAFS mechanism was instituted under the leadership of Jawaharlal Nehru in 1951.
Which of the statements given above is/are correct?
Statement 1 is correct: The Third India-Africa Forum Summit (IAFS-III) was hosted in New Delhi in October 2015. The first and second summits were held in 2008 (New Delhi) and 2011 (Addis Ababa), respectively, making the 2015 event the third edition. Statement 2 is incorrect: The India-Africa Forum Summit was institutionalized in 2008 to serve as the official platform for African-Indian relations. While Jawaharlal Nehru was a pioneer of Afro-Asian solidarity (e.g., the Asian Relations Conference of 1947), the IAFS is a distinct 21st-century initiative and was not established in 1951.
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:
Statement-I :Israel has established diplomatic relations with some Arab States.
Statement-II :The 'Arab Peace Initiative' Mediated by Saudi Arabia was signed by Israel and Arab League.
Which one of the following is correct in respect of the above statements?
* Statement I is correct: Several Arab states, including Egypt, Jordan, United Arab Emirates, Bahrain, Morocco, and Sudan, have established diplomatic relations with Israel. * Statement II is incorrect: The Arab Peace Initiative, mediated by Saudi Arabia, was endorsed by the Arab League but not signed by Israel. It outlines a path towards peace in exchange for Israeli concessions, but Israel has not formally accepted all its terms.
The Chancellor of the Federal Republic of Germany visited India in January, 2026. Which of the following is/are **not** correct in terms of outcomes of this visit ?
1. Signing of a Memorandum of Understanding between the All India Institute of Ayurveda and the University of Hamburg
2. Signing of a Memorandum of Understanding on Youth Hockey Development between Hockey India and the German Hockey Federation
3. Establishment of a bilateral dialogue mechanism on the Indo-Pacific
4. Opening of an Honorary Consul of Germany in Lucknow
Select the answer using the code given below :
Statement 1 is Incorrect: During the visit, an MoU was signed to strengthen cooperation in traditional medicine between Gujarat Ayurveda University and German institutions. (An earlier MoU in late 2025 was agreed upon between the All India Institute of Ayurveda and Charité Universitätsmedizin in Berlin, not the University of Hamburg). Statement 2 is Correct: A Memorandum of Understanding (MoU) on Youth Hockey Development was officially signed between Hockey India and the German Hockey Federation. Statement 3 is Correct: The two nations announced the establishment of a new bilateral dialogue mechanism on the Indo-Pacific, alongside a Track 1.5 Foreign Policy and Security Dialogue. Statement 4 is Incorrect: Following the Chancellor's focus on Gujarat, Germany announced the appointment of an Honorary Consul in Ahmedabad to foster closer cooperation in the western region, rather than in Lucknow. Since the question asks for the statements that are not correct, statements 1 and 4 fit the criteria. Therefore, the correct option is B.