A draft law has been registered in the Verkhovna Rada of Ukraine that proposes to criminalize sanctions violations and circumvention: a key step to strengthening sanctions policy
President of Ukraine Volodymyr Zelenskyy has introduced a new draft law to the Parliament that would introduce criminal liability for violating and circumventing sanctions. Its development resulted from the joint work of the Institute of Legislative Ideas, the Ministry of Justice of Ukraine, and more than ten other government agencies. The registered draft law is aimed at strengthening the sanctions regime and ensuring accountability for actions that threaten the national security of Ukraine. Earlier, ILI experts presented it at the roundtable on the presentation of the draft law on the criminalization of sanctions violation and circumvention, the VIII Kharkiv International Forum, the presentation of the draft law at the National Academy of the Security Service of Ukraine, the XI Conference on Criminal Law and Procedure and the international conference ‘Criminalisation of Sanctions Evasion’.
According to the draft law, intentional and reckless violation of sanctions, as well as their deliberate circumvention, will be punishable by a fine of UAH 425,000 to UAH 2.04 million or imprisonment for a term of two to ten years. This will be accompanied by mandatory disqualification from holding certain positions or engaging in certain activities for 10 to 15 years, and in some cases, confiscation of property. Importantly, the liability will apply not only to the sanctioned persons but also, in particular, to officials and public service providers, as well as any third parties.
Legal entities that violate and circumvent sanctions may be fined or have their property confiscated and liquidated. This provision should be a powerful deterrent to businesses considering circumventing the restrictions.
Tetyana Khutor, Head of the Institute of Legislative Ideas, stressed that this document takes into account the best practices of Ukraine's partner countries and can become an important tool in the fight against those who contribute to the aggression against Ukraine. She stressed that the introduction of this draft law to the Verkhovna Rada is an important signal to business: any violation or circumvention of sanctions will not go unpunished.
This draft law aims not only to strengthen Ukraine's sanctions policy but also to create an effective mechanism for protecting economic and national security. Increased accountability for actions that undermine the sanctions regime is a key tool for strengthening Ukraine's position in the international arena and for coordinating efforts with partners in countering aggression. The registered draft law will be an important step in ensuring justice, deterring violators, and increasing confidence in the country's sanctions policy.
Read more about the draft law in the article by Tetiana Khutor for "Економічна правда".
Deputy Minister of Justice of Ukraine Inna Bogatykh and Head of the Institute of Legislative Ideas Tetyana Khutor
Tetyana Khutor, Head of the Institute of Legislative Ideas, Andriy Klymasiuk, Project Manager of the ILI, and Mykola Rubashchenko, legal analyst at the ILI