Extraterritorial Sanctions

Sanctions a state applies to conduct by foreign persons outside its territory, asserted through a jurisdictional nexus such as use of its currency, financial system, or goods. US secondary sanctions are the leading example: a non-US party that transacts with a sanctioned Iranian or DPRK entity can itself be designated or cut off from the US market, even with no US touchpoint beyond a US-dollar clearing. The reach drove the EU to enact its Blocking Statute, Regulation (EC) 2271/96, against compliance with named US measures.