Explainer

Why Sanctions Don't Always Work — And When They Do

January 15, 2025·7 min read

Economic sanctions are one of the most commonly used tools in modern diplomacy. When a country steps out of line — invading a neighbor, developing nuclear weapons, cracking down on its own citizens — the international community often reaches for sanctions before military action.

But do they actually work?

The honest answer is: sometimes. And the conditions that determine success or failure are more specific than most people realize.

When Sanctions Work Best

Sanctions tend to be most effective when they're targeted, multilateral, and combined with a clear off-ramp for the target country.

The Iran nuclear deal of 2015 is the clearest modern success story. A coordinated sanctions regime — including the US, EU, and UN — created genuine economic pain that brought Iran to the negotiating table. The key ingredients: near-universal participation by major trading partners, specific demands (limit uranium enrichment), and a credible promise of relief if those demands were met.

When They Fail

Cuba has been under a US trade embargo since 1960. The Castro government is gone, but the Communist Party remains firmly in power. North Korea has faced some of the harshest sanctions in history — and has developed more nuclear weapons than ever.

The pattern in failed sanctions regimes: the target country finds alternative trading partners, the ruling class insulates itself from economic pain, and the sanctions become a useful nationalist rallying point ("we're suffering because of foreign imperialism").

The Russia Problem

Russia's case is the most closely watched current example. Since 2022, the US and EU have imposed sweeping sanctions on Russian banking, energy, and exports. Russia's economy has contracted, its access to Western technology has been cut off, and hundreds of Western companies have left.

And yet, Russia's war effort continues. Why? China and India have dramatically increased their purchases of Russian oil. Russia's domestic arms production has ramped up. And the Kremlin has shown it's willing to accept significant economic pain to achieve its military objectives.

The lesson: sanctions can impose real costs, but they rarely change the calculations of authoritarian governments with high pain tolerance and alternative trading partners.