Ukraine needs a law that genuinely punishes sanctions violations

Such was Draft Law No. 12406, developed by the Institute of Legislative Ideas together with ten state bodies over the course of a year. The document incorporated the best European practices and was meant to respond to the expectations of society and international partners, since it is impossible to take sanctions seriously when there is no liability for breaking them.

However, during parliamentary revisions, amendments were introduced that not only undermine its initial purpose but also distance Ukraine from European standards. As noted by the Head of ILI, Tetiana Khutor, during a national telemarathon broadcast, the most dangerous changes include three major issues. First, liability is envisaged only for intentional violations, while in practice most violators always claim “negligence,” which renders the article declarative and complicates real accountability.

Second, the amendments create a loophole for transferring sanctioned assets through lawyers, who would be able to receive unlimited sums under the guise of legal service fees, effectively opening a legalized scheme for moving funds.

Third, the draft law does not provide for a system of licenses or exemptions, which exist in European countries and allow sanctioned individuals to make necessary payments while protecting the state from lawsuits in the European Court of Human Rights and multimillion-euro compensations.

As a result, instead of a strong legal instrument, Ukraine risks ending up with one of the weakest sanction enforcement systems in Europe, undermining the trust of partners and weakening our security during wartime.

More details in the interview for Pryamyi TV Channel.