How can Ukraine’s sanctions policy become a genuine part of its national security system?
On June 19, Kyiv hosted the III Conference “BUSINESS VS SANCTIONS,” bringing together experts, lawyers, government officials, and civil society representatives to discuss key challenges in the sanctions sphere.
Tetiana Khutor, Head of the Institute of Legislative Ideas, emphasized in her speech the need to view sanctions policy not only as a legal tool but as an integral part of the national security system. She focused on the issue of criminalizing sanctions evasion, stressing that only a comprehensive approach can make this policy truly effective.
“Ukraine’s sanctions legislation appears quite soft compared to the approaches of the United Kingdom or the United States, where assets can be seized not only from those directly engaged in warfare but also from companies and individuals maintaining trade ties with the aggressor state. During armed aggression, this is considered standard practice,” Tetiana Khutor noted.
She highlighted that Ukraine’s draft law on the criminalization of sanctions evasion sets the lowest thresholds compared to what the EU Directive proposes, stating that, in her words, “we are underperforming.” She also mentioned investment screening as a tool to protect the economy.
“We should not discredit sanctions policy as a whole due to isolated cases; we need to correct the mistakes,” Tetiana added.
She emphasized that all EU countries were required to criminalize sanctions evasion by May, even though these countries are not at war, adding:
“In Ukraine, we have a sanctions policy, but no punishment for violations or evasion of sanctions. We need to move toward criminalization, with clear rules. Of course, there should be exceptions—those under sanctions should still be able to pay for housing or legal services. At the same time, there should be asset declaration requirements. We need to systematize sanctions, and work on this is ongoing.”
Tetiana Khutor underscored the need for a realistic perspective:
“Ukraine has long been economically tied to Russia. Many individuals hold Ukrainian, Russian, and additional citizenships simultaneously. We cannot rely solely on citizenship as the basis for imposing sanctions; there must be other grounds to consider.”
The Institute of Legislative Ideas continues to work to ensure that sanctions policy does not lose public trust due to isolated shortcomings but instead evolves into an effective instrument of state policy.