In today’s global world, where every country is connected by trade, finance, and politics, sanctions act like silent weapons. They are non-military tools used to pressure a country into changing its behaviour, much like how a police officer gives a fine for breaking rules.
But what happens when these fines aren’t just between two parties but rather affects the entire neighborhood? That’s exactly how global sanctions influence world alliances and shape economic decisions. Let’s break this down simply and understand how sanctions have changed the world map, not in borders, but in trade, cooperation, Military and trust.
What Are Economic Sanctions, in simple words?
Sanctions are like economic punishments. When a country does something other nations don’t agree with: like building illegal weapons or attacking another country. Other countries may ban trade, stop financial support, or freeze important deals. It is a way to control without involving into a direct war like situation.
To truly understand something deeply, it’s important to first look at its roots. Let’s break this down with a simple example.
Imagine two neighbours. One relies on the other for clean water because his own supply isn’t great. But one day, he does something that upsets the neighbour. In response, the neighbour cuts off his water supply. Now, this isn’t a fight or a war, but it’s a form of punishment, a way to pressure someone into changing their behaviour without physical conflict. This is, in essence, what a sanction looks like. It’s a tool used to send a strong message or enforce accountability without resorting to violence.
What Can Sanctions Really Do?
Sanctions can do a lot of things, and not all of them are straightforward. Sometimes, they push a country to start depending more on itself. Local industries might grow because people no longer have access to foreign products or resources. On the surface, that might look like a good thing.
But if you think about it, running a country entirely on its own is really hard. It’s expensive, slow, and honestly not very practical. No country exists in a bubble, we all rely on each other for trade, tech, ideas, and resources. Trying to do everything on your own can drain time, money, and energy.
Another thing sanctions do is shift relationships. Countries that are sanctioned often look for new friends aka new alliances. They might create new ways to trade, new systems to get around the rules. So in a way, sanctions don’t just hurt, they also force change, and not always in the way the world expects.
Here are some real-Life Examples of Countries Facing Sanctions
- Russia :
In 2014, Russia took over Crimea, a part of Ukraine. Meanwhile in the year 2022, Russia launched a full-scale invasion of Ukraine.
Countries like the USA, UK, and EU imposed heavy sanctions. Russian banks were removed from SWIFT, the global payment system.
Russia turned to China, India, and Iran for trade. Europe began searching for other energy suppliers. A major shake-up happened in global oil and gas trade.
- Iran
Iran faced sanctions over nuclear weapons development and alleged terrorist links. The US and UN immediately banned oil exports and investments.
Iran started selling oil secretly or in non-dollar terms and joined new groups like the Shanghai Cooperation Organization (SCO), led by China and Russia.
- North Korea
Sanctions were placed due to illegal nuclear testing and human rights violations. Trade in weapons and luxury items was totally banned.
North Korea became heavily dependent on China, isolating itself further from the global economy.
- China
Not full sanctions, but certainly yes there were some targeted ones. The USA had strictly restricted Chinese tech companies like TikTok and banned certain chip technology.
China began pushing to develop its own tech industry and strengthened the BRICS alliance; Brazil, Russia, India, China, and South Africa, in order to reduce their dependence on the West.
- India
In May 1998, India conducted nuclear tests (Pokhran-II). Due to this, Countries like the USA and Japan imposed certain sanctions.
- The Scientific cooperation was cut down.
- Military and financial aid were stopped.
- India was immediately removed from some global scientific projects.
But what was India’s response to the above sanctions mentioned?
India Stood firm, defended its right to protect itself, and boosted internal research And then by 2005, India signed a major nuclear deal with the US, marking a turnaround in geo-political relations.
What are the contemporary Sanctions? (2024–2025)
- July 18, 2025: The EU and UK introduced their 18th sanctions package against Russia, including a new oil price cap set 15% below market value.
- The UK also sanctioned 135 tankers and related firms, aiming to choke off Russia’s oil profits.
- The USA threatened 100% tariffs on countries buying Russian oil unless peace talks begin soon.
- India quickly adjusted its oil strategy, increasing its number of oil suppliers from 27 to 40 (adding countries like Brazil, Canada, Guyana). This shows India’s flexible approach under pressure which has been remarkable even if we trace back in history.
How Economic Sanctions Lead to New Alliances?
When powerful nations (like the US and EU) cut off others from their systems, the isolated countries look for alternatives. That’s how new alliances emerge.
What does BRICS actually stand for, what kind of Alliance is it? Let’s figure this out in simple words.
Brazil
Russia
India
China
South Africa
These countries mainly focus on trade and development, above all they are completely free from Western influence.
SCO (Shanghai Cooperation Organization)
Another alliance which includes Russia, China, India, Pakistan, Iran, and Central Asian countries. It Focuses primarily more on security cooperation, anti-terrorism, and political teamwork.
These alliances became stronger because countries like Russia, Iran, and China, after facing sanctions, grew closer and supported each other economically and politically. Thus, they fostered a sense of fraternity between them at times.
There’s a major difference between Legal sanctions and illegal ones, let’s have a look :
Legal Sanctions are approved by the United Nations (UN). For Example, the sanctions on North Korea for nuclear testing in 2006.
Meanwhile Illegal or Unilateral Sanctions are imposed by individual countries (like the US or UK) without the UN approval. These can cause divisions and force countries to choose their respective sides.
India’s official stand, as expressed by MEA spokesperson Randhir Jaiswal, is very clear:
“India will follow only UN-approved sanctions and will not bow to external pressures, especially when it comes to energy security.”
What’s the actual Global Impact: What Does It All Mean?
Sanctions reorganize the world economy. They shift trade routes, break old alliances, and create new power groups. Countries begin trading in local currencies instead of the US dollar. New banking systems and tech partnerships emerge often due to sanctions. The world becomes more divided, with some siding with the West and others forming their own networks.
Sanctions are powerful tools. Sometimes they are necessary to stop illegal actions or protect human rights. At other times, they can be unfair or politically driven, used to push national interests.
Just like every coin has two sides, sanctions too have both benefits and consequences. They can either bring order or deepen divisions. So, countries must act wisely, choosing paths that balance global peace, economic freedom, and national interest.
Article by Sruti Bhaumik