1. To permit or to officially accept or to allow something; "The government will sanction the use of force."
2. A penalty or an action that is taken or an order that is given to force a country to obey international laws by limiting or stopping trade with that country, by not allowing economic aid for that country, etc.; "The United Nations has decided to impose economic sanctions on the country."

An event may be sanctioned by some authority, while a country might suffer sanctions for its actions.