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I am going through ruleset files and just encountered this:
Does this mean that building UN by any polayer imposes diplomatic restrictions on the whole world? Or am I missing something? (With some limitations)

Yes, if someone has built United Nations, someone has built Manhattan Project, that particular player knows Nuclear Fission, and no one has built the Apollo Program, then that particular player will have "diplomatic restrictions".

Basically, this implies that if the United Nations has been built, then nuclear-able nations have diplomatic restrictions, until someone builds the Apollo Program. Primitive nations are not effected. The idea of this is to have something similar to the cold war happen in the game.

Is this a new effect in the default ruleset? I don't remember this being here before, unless there were so many wars already happening by this point in my games that I didn't notice the senate blocking anything. Also I think the AI just dissolves the government if it wants to declare war and the senate is blocking it. Would this apply in Anarchy as well?

Still, I like this idea! I always thought mutually assured destruction should have more of an effect in civ, and this kind of allows for it.

It's in civ2civ3 ruleset in 2.5 (or civ2, not sure, maybe both). Don't know about others.