EU Sanctions Law: Legal Foundations of Europe’s Foreign Policy Power

Introduction: Sanctions as Europe’s Foreign Policy Weapon

The European Union is often described as a “normative power” in world politics—relying less on military force and more on law, trade, and diplomacy. But in recent years, the EU has increasingly turned to restrictive measures (sanctions) as its most visible and powerful foreign policy tool.

From Russia’s war in Ukraine to Iran’s nuclear program and Myanmar’s military coup, EU sanctions have become a central mechanism for defending international law, human rights, and European security interests.

But what is the legal basis of EU sanctions? How are they decided, enforced, and challenged in court? And what challenges lie ahead as sanctions become more complex and globalized?

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The Legal Basis of EU Sanctions

Sanctions law in the EU sits at the intersection of foreign policy and internal market law:

1. Common Foreign and Security Policy (CFSP) legal basis

Article 21 TEU sets the Union’s foreign policy objectives (peace, democracy, human rights).

Article 29 TEU allows the Council to adopt CFSP decisions imposing sanctions on states, organizations, or individuals.

2. Internal Market implementation

Because sanctions affect trade, finance, and movement of goods and persons, they require a second legal act:

Council Regulation under Article 215 TFEU, which gives sanctions direct effect in all Member States.

This “two-pillar” structure means sanctions have both a foreign policy character and an internal market dimension.

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Types of EU Sanctions

The EU uses a wide toolkit of restrictive measures, which may target both countries and non-state actors:

Arms embargoes – prohibiting the export of military equipment and dual-use goods.

Economic and trade restrictions – banning imports/exports of sensitive goods (oil, coal, high-tech).

Financial sanctions – freezing assets, cutting access to EU capital markets.

Visa bans and travel restrictions – prohibiting entry into EU territory.

Sectoral sanctions – targeting specific industries (banking, aviation, energy).

Listing of individuals/entities – designating oligarchs, companies, militias.

Sanctions are targeted rather than comprehensive, reflecting the EU’s emphasis on minimizing humanitarian impact.

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Decision-Making: Who Decides?

EU sanctions require unanimity among Member States in the Council for the CFSP decision. Once adopted, implementation through regulations is decided by qualified majority.

The European External Action Service (EEAS) and the European Commission play crucial roles in:

Drafting proposals,

Coordinating intelligence and evidence,

Monitoring enforcement across Member States.

This process makes sanctions a collective EU decision rather than a tool of individual states.

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Judicial Review and Fundamental Rights

Because sanctions often freeze assets or restrict movement, they raise fundamental rights issues (property rights, due process).

Individuals and companies placed on sanctions lists can challenge their designation before the General Court of the EU (GC). The Court has developed significant case law requiring:

Sufficient evidence for listings,

Right to be heard and to judicial review,

Proportionality assessments.

Cases like Kadi I and II (2008–2013) shaped EU law by affirming that sanctions must respect EU fundamental rights, even when implementing UN Security Council resolutions.

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Implementation and Enforcement Challenges

While EU law gives sanctions direct effect, enforcement depends heavily on Member States. Challenges include:

Divergent national enforcement (some states stricter than others),

Difficulties in tracing beneficial ownership of companies,

Loopholes in export controls and financial flows,

Third-country circumvention, as goods and funds are rerouted through non-EU jurisdictions.

The EU has responded by:

Creating a Sanctions Envoy to coordinate enforcement,

Strengthening cooperation with the European Public Prosecutor’s Office (EPPO) and Europol,

Adopting rules to criminalize sanctions circumvention across the EU.

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Case Study: Russia Sanctions Regime

Since 2014—and especially after the 2022 full-scale invasion of Ukraine—the EU has adopted its most extensive sanctions regime ever against Russia:

Over 1,800 individuals and entities listed,

Sectoral bans on energy, banking, aviation, tech, and media,

Freezing of Russian Central Bank reserves in the EU,

Price caps on oil exports (coordinated with G7).

This shows sanctions as both a foreign policy response and a geopolitical economic weapon—reshaping supply chains, energy policy, and global trade flows.

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The Global Dimension: Coordination and Tensions

EU sanctions often align with those of the U.S., UK, and G7 partners. But differences remain:

The U.S. uses secondary sanctions extraterritorially, while the EU avoids them (to protect sovereignty and WTO compatibility).

Coordination challenges arise when partners have different legal standards of evidence or timelines.

At the same time, the EU’s growing use of sanctions has prompted pushback from third countries, who view them as neo-protectionist or politically biased.

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Conclusion: The Future of EU Sanctions Law

Sanctions have become the flagship of EU foreign policy—visible, powerful, and legally sophisticated. But their success depends on:

Unity among Member States,

Effective enforcement at the national level,

Balance with fundamental rights,

Global coordination with allies.

Looking ahead, the EU may need to expand sanctions into new areas—such as cyber operations, AI misuse, and environmental crimes—while continuing to defend their legality in European courts and international law.

Ultimately, sanctions embody the EU’s unique approach: using law as a weapon of foreign policy in pursuit of a fairer, rules-based world order.