Bill on liability for circumventing sanctions passed in the first reading

The Verkhovna Rada voted in the first reading on bill No. 12406, which provides for criminal liability for violating and circumventing sanctions.

The Institute of Legislative Ideas participated in its development as part of a working group under the Ministry of Justice together with ten other state bodies.

The draft law proposes to criminalize intentional and negligent violations of sanctions, as well as their intentional circumvention. Violators face fines ranging from 425,000 to 2.04 million hryvnia or imprisonment for a term of 2 to 10 years. Legal entities may be subject to criminal measures, including fines, confiscation of property, or liquidation. The document also provides for criminal liability not only for sanctioned persons, but also for officials, public service providers, and any third parties who facilitate the violation or circumvention of sanctions.

The draft law takes into account Ukraine's European integration commitments and best international practices, forming a comprehensive mechanism of accountability in the field of sanctions policy. At the same time, before the second reading, the document needs to be refined to ensure a balance between national security, business interests, and human rights.

This decision is an important step towards strengthening Ukraine's sanctions policy and bringing it closer to EU standards in the area of liability for violations of sanctions regimes.