What is the Global Sanctions Index and who publishes it?

The Global Sanctions Index (GSI) is a report published by LSEG Risk Intelligence that tracks the number of individuals and entities subject to economic restrictions worldwide. It provides organisations with data and analysis to help them understand and navigate the increasingly complex global sanctions landscape. The report is considered a key resource for compliance and risk management professionals.

How many people and entities are currently under global sanctions?

According to the latest Global Sanctions Index report from LSEG Risk Intelligence, approximately 82,000 individuals and entities are now subject to economic restrictions worldwide. This figure represents a record high, reflecting the growing use of sanctions as a geopolitical and economic policy tool by governments and international bodies. The numbers have risen sharply in recent years amid ongoing global conflicts and diplomatic tensions.

Why are global sanctions at a record high?

The unprecedented rise in global sanctions reflects an increasingly volatile geopolitical environment, with governments and international bodies using economic restrictions more frequently as a foreign policy response to conflicts, human rights abuses, and security threats. The ongoing wars in Ukraine and the Middle East, along with heightened tensions in the Indo-Pacific region, have contributed significantly to the surge. Sanctions have become one of the most commonly deployed tools of international diplomacy and economic pressure.

What do record-high global sanctions mean for businesses and PR professionals?

For businesses, record-high sanctions levels mean heightened compliance obligations, greater reputational risk, and the need for robust due diligence processes when engaging with international partners, clients, and suppliers. For PR and communications professionals, understanding the sanctions landscape is essential when advising clients on reputation management, crisis communications, and stakeholder engagement. Staying across developments in this space is a critical part of providing sound strategic counsel.

How does Third Hemisphere keep PR professionals informed about global regulatory trends like sanctions?

Third Hemisphere regularly publishes editorial content under its Required Reading category, curating and analysing significant global developments that are relevant to communications professionals and business leaders in Australia and beyond. Posts like its coverage of the Global Sanctions Index are designed to surface important PR industry insights that help practitioners stay informed and provide better strategic advice to their clients. Following Third Hemisphere's blog is a practical way to keep up with the issues shaping the communications industry.

Why should Australian PR agencies like Third Hemisphere pay attention to global sanctions trends?

Australian businesses operate in an interconnected global economy, meaning that shifts in the international sanctions landscape can directly affect local companies, their supply chains, and their reputations. PR agencies like Third Hemisphere need to understand these trends in order to advise clients on compliance communications, crisis preparedness, and the reputational risks associated with sanctioned entities. Awareness of global regulatory developments is increasingly a core competency for strategic communications professionals in Australia.

Record-Breaking Global Sanctions and Their Business Impact

Global sanctions reach record high

The global sanctions landscape has reached unprecedented levels.

There are approximately 82,000 individuals and entities now subject to economic restrictions worldwide.

The figures come from the latest Global Sanctions Index (GSI) report, released by LSEG Risk Intelligence.

The report reveals that annual sanctions inflation has accelerated to 17.1%, up from 16.1% in the previous year, with the GSI reaching a value of 446 – a 446% increase since the baseline measurement in January 2017.

Mike Meadon, Director of Asia Pacific at LSEG Risk Intelligence and architect of the GSI, describes the current environment as one of “sanctions hyperinflation.” This is a sustained multi-year trend of rapidly increasing sanctioned persons that mirrors traditional economic inflation patterns.

He noted: “The effects of sanctions inflation can be far-reaching, with increased volumes of sanctions adding exponentially to the complexity and costs of compliance with global regulations.”

The phenomenon has been driven by multiple factors, including the expansion of sanctions beyond traditional terrorism and proliferation concerns to encompass human rights violations, drug trafficking and corruption. The Russian invasions of Ukraine in 2014 and 2022 have been particularly significant catalysts.

The report also reveals that the US remains a dominant force.

The Office of Foreign Asset Control (OFAC) continues to be the primary driver of global sanctions growth, showing annual inflation of 21.3% and reaching a sub-index value of 316. This reinforces the United States’ position as the world’s most active sanctions authority.

However, other major sanctions bodies are showing signs of moderation:

EU – 10.5% annual inflation (down from 16.7%);
UK – 7.4% (12.8%);
Canada – 9.6% (15.4%);
Japan – 4.6% (9.1%).

Chinese sanctions programmes have exploded with 153% annual inflation, reaching an index value of 1,507. This dramatic acceleration from just 23.6% a year ago signals China’s increasing use of economic coercion as a foreign policy tool.

The report identifies a troubling new trend, the emergence of “hyper-divergence” in global sanctions policy. The consensus-based UN sanctions programme now represents just 1.22% of all global sanctions – an all-time low – meaning nearly 99% of sanctions come from autonomous national or regional programmes.

This fracturing is most evident in approaches to Russia. While the Trump administration has signalled potential easing of sanctions against Moscow, other Western allies including the European Union and United Kingdom have actually strengthened their restrictions and enforcement mechanisms.

The report introduces “Uncertainty” as a new defining characteristic of the 2025 sanctions environment. Key questions include:

will U.S.-Russia rapprochement lead to sanctions relief?
how will other Western nations respond to potential American policy shifts?
will the novel concept of “secondary tariffs” expand beyond Venezuela?

The Trump administration’s threat of 25% secondary tariffs on countries purchasing Venezuelan oil represents an unprecedented extension of sanctions into trade policy, with unclear implications for global commerce.

The complexity of the modern sanctions environment is creating exponential increases in compliance costs for businesses worldwide. The shift toward “privatization” of sanctions enforcement,-requiring companies to interpret broad narrative statements rather than simple lists, has made compliance significantly more challenging.

While some experts speculate that sanctions may have reached their peak, the report’s authors remain cautious about predictions in such a volatile environment.

“In a year like 2025 with major geopolitical and economic dislocations and decisions being made and unmade in rapid succession, predicting the future seems especially difficult,” the report states.

What appears certain is that organisations must remain vigilant and adaptive as the sanctions landscape continues to evolve rapidly, with potential for both dramatic escalation and unexpected de-escalation depending on geopolitical developments.

The Global Sanctions Index, launched in 2022, uses LSEG’s World-Check database to track all sanctions regimes worldwide, providing the most comprehensive view of global economic restrictions available to date.