Overview
Pursuant to the Law of Ukraine on Sanctions, Ukraine imposes sanctions via presidential decrees which implement decisions of the National Security and Defence Council (NSDC).
The NSDC’s State register of sanctions provides information on designated individuals and entities (including identification information, types of sanctions, the expiration date, the implementing decree, and, for designations after the creation of the register, the basis for the designation).
Sanctions may consist of, inter alia: (a) asset freezes, (b) restrictions on trade operations, (c) restrictions on the transit of resources through Ukraine, (d) prevention of capital outflow from Ukraine, (e) suspension of the fulfilment of economic obligations, (f) cancellation of licences and permits necessary for carrying out certain activities, (g) prohibition on the leasing of state property, (h) prohibition on the procurement goods and services from entities owned by foreign states, (i) prohibition of the entry of vessels and aircrafts into the waters and airspace of Ukraine, (j) prohibition on securities transactions, and (k) prohibition on the transfer of technologies and intellectual property.
National Competent Authorities
The Parliament of Ukraine, the President, the Government, the National Bank and the Security Service all may initiate the process for the adoption of sanctions, their amendment or lifting, by submitting a proposal to the NSDC.
The NSDC reviews the proposals and decides whether or not to approve. If approved, it is imposed through a presidential decree.
The Cabinet of Ministers of Ukraine, the Security Service of Ukraine, and the National Bank of Ukraine are responsible for monitoring the effectiveness of sanctions.
The Ministry of Foreign Affairs is responsible for informing the competent authorities of the EU and the US and other countries about the application of sanctions and raise with them the issue of introducing similar sanctions.
The State Property Fund of Ukraine manages confiscated sanctioned assets.
Legislation
Law of Ukraine on Sanctions No 1644-VII of 14 August 2014
Law on Improving the Effectiveness of Sanctions on the Assets of Individuals No. 7194
Law on Forced Seizure of Property of Russia and Its Residents No. 2116-IX
Sanctions Lists
State register of sanctions, “Sanctions”
Guidance
List of presidential decrees where designations are announced
Ukraine’s alignments with EU sanctions are announced by EU Council press releases
Enforcement
Ukraine may seize frozen assets pursuant to 3 mechanisms:
- Law on Improving the Effectiveness of Sanctions on the Assets of Individuals No. 7194:
Under this law, after the President has adopted a sanctions decree against an individual or entity, the Ministry of Justice then prepares a statement to the High Anti-Corruption Court of Ukraine (HACC) requesting confiscation of assets. The HACC then considers the application and makes a decision (which can be appealed). If the HACC decides that there should be confiscation, and the appeal fails or no appeal is made, then such assets are transferred to the management of the State Property Fund of Ukraine (SPFU).
- Law on Forced Seizure of Property of Russia and Its Residents No. 2116-IX:
Under this law, the Cabinet of Ministers prepares a draft decision on the asset seizure for the NSDC to consider. The President must then sign a decree which, no later than 6 months from the date of the end of martial law, must be approved by the Ukrainian Parliament. The assets are then transferred for management by the Deposit Guarantee Fund of the Ministry of Finance.
- Confiscation within the framework of criminal proceedings
Assets may be confiscated following a criminal prosecution and transferred to the Asset Recovery Management Agency.
