In this article, we take a look at 28 embargoed and sanctioned countries by the US, in addition to an overview of the US sanctions regime. If you would like to skip our detailed discussion, you can directly go to 5 Embargoed and Sanctioned Countries by the US.
An Overview of Sanctions and Embargoes
Sanctions and embargoes are foreign policy tools aimed at pressuring other states to refrain from certain activities or comply with specific demands. Embargoes restrict all forms of trade and economic activity with a particular state, making them a comprehensive measure. On the other hand, sanctions are more targeted and applied to specific industry sectors, individuals, or entities.
Examples of sanctions and embargoes include asset freezing, travel bans, trade embargoes, and import/export restrictions. Some of the most common situations in which sanctions or embargoes are implemented include non-compliance with international law or human rights violations. These tools can be enforced by multinational bodies such as the United Nations and the European Union or country governments like the United States.
According to the UN, the primary goals behind its active sanctions are nuclear non-proliferation, political settlement of conflicts, and counter-terrorism. The United Nations has implemented 31 sanction regimes since 1966, 14 of which are still active. Some examples are Yemen, Haiti, and South Sudan, all three of which are facing arms embargoes, asset freezes, and travel bans.
Even though sanctions and embargoes are considered essential pressure tools, they have also faced criticism in the international community. One of the biggest critiques is that economic sanctions may result in unintended humanitarian consequences, such as an astronomical rise in food prices, negatively impacting ordinary citizens, who will become collateral damage in the process. This growing unease around the idea of sanctions led to the termination of the UN sanctions regime against Mali in 2023, which failed to be renewed due to vetoes and a shortage of votes.
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The Impact of US-Enforced Sanctions
The United States government is a major sanctions enforcer in the international arena. The country has 38 active sanctions programs, implementing restrictions against various countries, individuals, and organizations. A 2024 study by Dizaji and Farzanegan revealed that when the US increases complete trade sanctions by just one unit, there is a decrease of 76% in bilateral trade flows with sanctioned trading partners. An increase of one unit in partial trade sanctions decreases bilateral trade flows by 16%. Furthermore, when the US implements complete import and export sanctions, its bilateral trade flow with sanctioned partners decreases by 39% and 90%, respectively.
Another 2024 study by Mkhwanazi et al. found that when the US increases its economic sanctions by 1%, it leads to a 4% increase in income inequality in African-targeted states. On the other hand, a rise of 1% in UN economic sanctions raises income inequality in African states by only 1%. These results show that US-based sanctions can impact countries much more severely than UN-based ones.
A 2023 report by the Centre for Economic and Policy Research (CEPR) evaluated the impact of US sanctions on oil production in Venezuela. In January 2019, the US imposed primary oil sanctions on the country, following which oil production decreased by 35.2%. In February 2020, the US implemented secondary oil sanctions on Mexican and Russian companies involved in selling Venezuelan oil in non-US markets. This led to a decrease of 55.7% in Venezuelan oil production between February and June 2020.
When Venezuela’s data is compared with other oil-producing nations, a comparable decline is only found in Yemen, a state in active conflict at the time. The sanctions also impact other elements of life. Following the 2017 financial sanctions imposed by the US, mortality rates in Venezuela increased by 31%. From 2016 to 2017, the number of Venezuelan households dependent on government food programs increased from 4 million to over 7.5 million.
These drastic impacts are why public opinion regarding sanctions has shifted. A 2023 Harris Poll disclosed that 58% of Americans (up from 49% in 2021) believe that if sanctions damage economic activity and the livelihood of ordinary citizens, they should be lifted. Furthermore, 62% of American citizens (up from 53% in 2021) believe the country should lift its sanctions if they interfere with global public health or humanitarian intervention.
US Sanctions on China
The United States has imposed sanctions on Chinese officials, companies, and government agencies for various reasons, including the issue of Uyghur human rights, China’s support of Russia in its war on Ukraine, and technological espionage. As recently as May 2024, the US revealed 300 new sanctions on over a dozen companies in China and Hong Kong, primarily due to their support for Russia in the Ukraine war.
In particular, the Chinese semiconductor industry has faced severe sanctions from the United States and other Western governments. One of the main reasons behind US-implemented sanctions is the government’s stance that China can utilize semiconductor processors for military advancement, threatening US national security. ASML Holding N.V. (NASDAQ:ASML), a Dutch semiconductor company, is among the top entities impacted by these geopolitical tensions.
ASML Holding N.V. (NASDAQ:ASML) is one of the world’s leading suppliers in the semiconductor industry, providing hardware, software, and other services to chipmaker companies. As of 2024, this is the only company in the world that produces Extreme Ultraviolet (EUV) lithography machines, a primary reason behind its industry dominance. This technology uses shorter wavelengths of light to create more powerful and faster microchips than other lithography formats.
Since 2022, the US has banned ASML Holding N.V. (NASDAQ:ASML) from selling its advanced equipment to China. Furthermore, in April 2024, the Biden administration started pushing the company to stop servicing some of the other equipment sold to Chinese customers before 2024. This poses a considerable setback for the Chinese semiconductor industry, as it is among the largest buyers of ASML gear, which will break down over time if not maintained.
On September 4, 2024, Reuters reported that ASML’s CEO believes US restrictions on the company are also ‘economically motivated’ instead of solely due to national interests. At a New York conference, the CEO mentioned that he expects an increase in US restrictions and a growth in push-back against them, which may result in an equilibrium for the current unstable situation.
Due to the situation with China, the company’s financials have suffered. In Q2 of 2024, ASML Holding N.V. (NASDAQ:ASML) reported a revenue of $6.83 billion, a year-on-year decrease of 11.69%. However, the revenue still beat estimates by $212.72 million, showcasing an upward outlook. The CEO commented that while the market continues to experience macro-level uncertainties, he expects the industry to continue recovering in the second half of the year.
It is also pertinent to note that during Q2, Chinese companies accounted for 49% of ASML’s total lithography system sales. China increased its purchase of older generation materials from ASML, as advanced equipment is banned by the US. The company’s CFO announced that of their total order backlog, 20% is for sales to China. If the situation with China continues to face disturbances, the company may sell these tools to other parts of the world, where demand for older generations is increasing. The CEO has referred to 2024 as a ‘transition year’, hoping that 2025 will result in a stronger performance driven by solid developments in AI.
While we acknowledge the potential of ASML as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Now that we have evaluated the geopolitical impacts of US sanctions, let’s take a look at 28 embargoed and sanctioned countries by the US. You can also read 15 Countries with the Largest Budget Deficit as a Percent of GDP.
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Our Methodology
To list 28 countries embargoed and sanctioned by the US, we utilized the ‘Sanctions Programs’ databases by the Office of Foreign Assets Control and the US Department of State. Both of these sources list all the sanctions currently active under the US government. The countries are ranked in ascending order of their GDPs, as prolonged sanctions can potentially decrease a state’s GDP. The GDP values have been sourced from the World Bank and the IMF.
It is pertinent to note that sanctions can be comprehensive and target entire countries, but they can also be specific and target particular individuals and entities within a country. For the purpose of this article, we have mainly considered countries targeted by distinct US sanctions regimes. Thus, there may be other countries where individuals have been sanctioned that are not listed in this article, such as Haiti and Paraguay. Hence, this must not be considered a comprehensive list of all US sanctions.
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28 Embargoed and Sanctioned Countries by the US
28. Central African Republic
GDP (2023): $2.55 Billion
The Central African Republic ranks 28th on our list, and it is one of the countries sanctioned by the US government. Sanctions have been placed on entities that the US believes are linked with the Wagner Group, a Russian private military company. In the past, CAR leaders have also been sanctioned for human rights abuses.
27. South Sudan
GDP (2023): $6.50 Billion
South Sudan has been marked by conflict for the past several years, which has led to widespread violence, attacks on peacekeepers, and human rights abuses. The US has sanctioned individuals and entities that perpetuate these disturbances, as they are preventing the country from reaching a state of stability.
26. Montenegro
GDP (2023): $7.40 Billion
Montenegro is sanctioned under the US government’s Balkans-Related Sanctions Program, mainly for corruption and malignant activities. Several prominent businessmen and politicians from the country have been sanctioned for money laundering, criminal ties, and smuggling.
25. Syria
GDP (2021): $8.98 Billion
The United States has designated Syria as a ‘State Sponsor of Terrorism’, placing sanctions on the country’s current regime as it continues to perpetuate violence against its citizens. The US prevents its citizens from investing in Syria, while also blocking the property of the Government of Syria.
24. Somalia
GDP (2023): $11.69 Billion
Somalia ranks 24th on our list of countries facing sanctions from the US government. These restrictions have been implemented on individuals and entities that threaten national peace, obstruct the delivery of humanitarian assistance, or conduct arms trade to or from the country. Political and military leaders who have resorted to using children in armed conflict may be sanctioned as well. Those involved in charcoal trade from the country have also been sanctioned, as it negatively impacts the Somalian environment.
23. Afghanistan
GDP (2022): $14.50 Billion
The US initially implemented sanctions on Afghanistan as a means of dealing with terrorist entities like Al-Qaeda. The Taliban rule has also prompted a series of sanctions on the country’s officials. Afghanistan is also one of the countries where sanctions have added to the humanitarian crisis. An example of this is the fact that Afghan banks remain cut off from the international banking system, with many foreign banks unwilling to process payments pertaining to Afghan banks.
22. North Macedonia
GDP (2023): $14.76 Billion
North Macedonia is one of the countries sanctioned under the Balkans-Related Sanctions Program of the US government. These sanctions are generally implemented on entities linked to Russian connections, corruption, or spyware activities.
21. West Bank and Gaza
GDP (2023): $17.39 Billion
According to the US Department of Treasury, the United States sanctions groups contributing to violence in the region, along with entities blocking access to humanitarian assistance. Some Israeli settlers accused of perpetrating violence in the area have also been sanctioned.
20. Nicaragua
GDP (2023): $17.82 Billion
The US treasury has placed sanctions on Russian-based institutions in Nicaragua, as well as certain gold companies. The latter is because of profit manipulation and corruption within the sector. Government officials have been sanctioned due to their repressive regime over the citizens.
19. Lebanon
GDP (2023): $17.93 Billion
The US has implemented sanctions on Lebanon since 2007, starting with blocking the property of individuals involved in ‘undermining democratic processes’ within the country. Individuals who are found to be supporting acts of violence in the country in any way have also been sanctioned.
18. Mali
GDP (2023): $20.90 Billion
Mali ranks 18th on our list of countries sanctioned by the US. The US government has sanctioned Malian military commanders charged with human rights abuses according to the UN Human Rights Office. Officials and gold companies presumed to be connected with the Wagner Group have also been sanctioned.
17. Bosnia and Herzegovina
GDP (2023): $27.05 Billion
The United States’ Balkans-Related Sanctions also include entities and individuals in Bosnia and Herzegovina, which ranks 18th on our list of countries sanctioned by the US. Officials who have been found guilty of undermining state institutions and damaging the country’s prospects of integration into European institutions have been sanctioned as well.
16. North Korea
GDP (2023): $40 Billion
North Korea is one of the very few states that the US has comprehensively sanctioned, which means that almost all kinds of trade and economic exchanges with the country are banned. Most of these sanctions concern the country’s nuclear program. The country has also been sanctioned for arms deals with Russia, illicit financial activity, malicious cyber activity, human rights abuses, and corruption.
15. Libya
GDP (2023): $50.49 Billion
Libya is one of the countries sanctioned and embargoed by the US. The US has implemented asset freezes and travel bans on Libyan individuals charged with perpetrating violence within the country. The country faces an arms embargo as well. Any entities or individuals found complicit in attacks against civilians or state facilities may also be sanctioned.
14. Myanmar
GDP (2023): $64.81 Billion
The US government has continued to impose several sanctions on Myanmar’s military regime, even three years after its military coup. Other sanctioned entities include oil and gas enterprises, jet fuel suppliers, state-owned banks, the Ministry of Defence, arms dealers, and timber enterprises. Sanctions have even been imposed on certain family members associated with the military. Several other individuals have been sanctioned for violence and human rights abuses.
13. Democratic Republic of the Congo
GDP (2023): $66.38 Billion
The US government has imposed a long list of sanctions on the DRC. These include sanctions on individuals contributing to conflict, companies involved in illicit gold trade, officials charged with corruption, and armed groups causing instability in the region. Furthermore, individuals found guilty of providing support to Dan Gertler, a sanctioned Israeli businessman with mining interests in the DRC, have also been sanctioned.
12. Yemen
GDP (2023): $68.58 Billion
The United States’ sanctions on Yemen began by freezing the assets of individuals charged with threatening national peace and security. In recent months, the US has continued to sanction Yemeni individuals and firms connected with the Houthi movement. UN aid officials have warned that continued sanctions may harm the Yemeni population, especially because they block essential imports for a country that is already war-torn.
11. Belarus
GDP (2023): $71.85 Billion
Belarus is one of the countries where government officials and state sectors are facing severe sanctions from the US government, owing to fraudulent elections, corruption, and human rights abuses. Furthermore, several networks in the country have been sanctioned for their support of Russia in its war against Ukraine.
10. Serbia
GDP (2023): $75.18 Billion
Serbia is one of the countries sanctioned under the Balkans-Related Sanctions Program of the US Treasury. Officials linked to corruption and connections to transnational crime have also been the subject of sanctions. The country ranks 13th on our list.
9. Cuba
GDP (2020): $107.35 Billion
The trade embargo between Cuba and the US was put in place by John F. Kennedy in 1962 due to the Cuban missile crisis. The embargo is still in place today, with further sanctions being imposed on officials for perpetrating violence and human rights abuses. Cuba ranks 9th on our list of countries embargoed and sanctioned by the US. It is also a comprehensively sanctioned state.
8. Sudan
GDP (2023): $109.32 Billion
Sudan ranks 8th on our list and faces targeted sanctions and an arms embargo implemented by the US Treasury. Any entities found to be funding the Sudanese conflict may be sanctioned. Officials in the country’s Rapid Support Forces have been sanctioned as well, charged with expanding war.
7. Ethiopia
GDP (2023): $163.69 Billion
Ethiopia is one of the countries the US government has embargoed and sanctioned. The sanctions are mainly designed to affect individuals who contribute to conflict within the country and fail to create a peaceful environment. Certain individuals in Eritrea have also been sanctioned with regard to this conflict, as Eritrean presence in Ethiopia continues to prove destabilizing for the country.
6. Venezuela
GDP (2023): $210.80 Billion
Venezuela ranks 6th on our list of countries sanctioned and embargoed by the US. Individuals considered guilty of human rights violations have been sanctioned. Just recently, in April 2024, the US reimposed oil sanctions on the country, accusing the government of democratic failure. It is also one of the countries where US-based sanctions have caused drastic impacts.
5. Iraq
GDP (2023): $250.84 Billion
Iraq ranks 5th on our list of countries sanctioned and embargoed by the US. The sanctions began as a means of imposing pressure on the government to withdraw from Kuwait and disclose any Weapons of Mass Destruction. However, years after these events, the US sanctions program on Iraq continues to remain active. Iraq is one of the countries where US-implemented sanctions have had the most drastic of impacts, leading to a reduction of over 90% in imports and exports, high rates of malnutrition, and a severe economic crisis.
4. Hong Kong
GDP (2023): $382.05 Billion
The US government has sanctioned individuals and entities in Hong Kong for links to Russia’s war on Ukraine, undermining Hong Kong’s autonomy, restriction of freedom of expression, and human rights abuses. Many of Hong Kong’s sanctions are closely connected to US sanctions on China.
3. Iran
GDP (2023): $401.50 Billion
Iran is a comprehensively sanctioned state as well, ranking third on our list. Several sanctions have been implemented on the country since 1979, when the US Embassy was seized in Tehran. Some recent sanctioned examples include entities trading in petroleum or petrochemical products, the country’s shadow banking network, cyber actors, and individuals tied to smuggling US technology to Iran.
2. Russia
GDP (2023): $2.02 Trillion
US sanctions on Russia are tied up with the intricate history between Russia and Ukraine. The sanctions began by restricting exports to Russian-occupied Crimea in 2014. The restrictions have significantly strengthened since the 2022 Russian invasion of Ukraine. The US has continued to heavily sanction not just Russia, but also any other states, individuals, or entities found to be supporting the country in its war on Ukraine.
1. China
GDP (2023): $17.79 Trillion
Chinese officials, entities, and companies have been sanctioned for several reasons, including espionage, human rights abuses in Uyghur, aiding Russian military networks, and conducting unlawful surveillance. A pertinent example of a sanctioned entity is the telecommunications company Huawei, which the US has denoted as a threat to its national security. The US has also sanctioned the semiconductor sector in various ways to slow down technological development in China.
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