ILI Chair Tetiana Khutor joins discussion on sanctioned assets and judicial oversight

A sanctions licensing mechanism could become an important tool for balancing Ukraine's sanctions policy. This was stated by Tetiana Khutor, Chair of the Institute of Legislative Ideas (ILI), during the 4th Business vs. Sanctions Conference, organized by Yurydychna Praktyka in partnership with the Ukrainian Association of Corporate Counsel.

"The current sanctions regime imposes a wide range of restrictions, yet it lacks an effective mechanism for holding violators accountable. At the same time, there are no clearly defined instruments to protect bona fide third parties whose rights are affected by sanctions," the expert said.

Tetiana Khutor analyzed existing gaps in Ukraine's sanctions framework through a number of high-profile cases and relevant court practice, which demonstrate the absence of a consistent approach to resolving such disputes. She noted that Ukrainian courts apply different standards when balancing private rights against the public interest in sanctions-related cases, creating legal uncertainty.

"A systematic regulatory approach is needed to prevent both the abuse of private-law instruments and the unjustified restriction of the rights of individuals and entities that are not subject to sanctions," the ILI Chair emphasized.

She proposed introducing the European model of sanctions licensing in Ukraine, which clearly distinguishes between statutory exemptions and individual licenses issued by competent authorities.

"This is precisely the system that enables EU Member States to ensure both the effectiveness of sanctions and the protection of the economic and social interests of third parties," Tetiana Khutor noted.

The ILI Chair stressed that without such a mechanism, Ukraine's sanctions policy risks remaining fragmented and overly dependent on individual decisions and political processes.