Ukraine applies confiscation of assets of Russian accomplices as a mechanism of economic deterrence of the aggressor

Ukraine is actively using various legal mechanisms to counter Russia's armed aggression. One of the key tools is confiscating the assets of persons who assist the aggressor. This approach not only weakens the enemy's economic capabilities but also demonstrates the inevitability of punishment for those who support the war. The legislative basis for this sanction was enshrined in May 2022 with the adoption of Law No. 2257-IX. According to this law, the property of persons directly or indirectly contributing to Russian aggression may be confiscated by the state. Dozens of cases have already been considered under this mechanism. An important aspect of this mechanism is its compliance with the rule of law. All asset confiscation cases are heard by the High Anti-Corruption Court of Ukraine (HACC), which guarantees procedural fairness. In addition, in each case, the decision is subject to appeal. In particular, this mechanism allowed for the confiscation of 15 companies, cash, and more than 300 properties owned by Russian oligarch Oleg Deripaska. His company, Russian Machines, is closely linked to the Russian defense industry and supplies weapons to the aggressor's army.

This mechanism is unique and attracts considerable attention regarding compliance with human rights standards. Undoubtedly, such recovery affects the property rights of the defendants. At the same time, this intervention complies with the principle of proportionality and is therefore lawful. The sanction is enshrined in the law and is applied exclusively in court proceedings. Its main goal is to deprive the aggressor of economic resources to continue the war, which is a justified measure given the threats posed by Russian aggression. In addition, such cases are considered by the High Anti-Corruption Court, which guarantees compliance with the principles of procedural justice and provides an opportunity to appeal the decision.

However, the legitimacy of this mechanism has been questioned. Recently, AEROC Investment Deutschland GmbH filed a complaint with the Constitutional Court of Ukraine, arguing that the confiscation contradicts the principle of inviolability of property rights enshrined in the Constitution. The Institute of Legislative Ideas offered its vision of this in the Amicus Curiae brief prepared for the Constitutional Court of Ukraine.

Thus, the confiscation of the assets of the aggressor's accomplices is an important legal tool that ensures the economic isolation of the Russian Federation and helps to weaken its military machine. Read more about the legal aspects of this mechanism in the article by Bohdan Karnaukh, an expert at the Institute of Legislative Ideas, for the Yurydychna Gazeta.