Ukraine will strengthen accountability for violating sanctions – the relevant draft law has been registered in the Verkhovna Rada – These restrictions aim to halt funding for the aggressor.
In the Verkhovna Rada, the draft law titled "On Amendments to the Criminal Code of Ukraine, the Criminal Procedure Code of Ukraine, and the Law of Ukraine 'On Sanctions' regarding the establishment of liability for violations of special economic and other restrictive measures (sanctions)" has been registered.
Deputy Minister of Justice Inna Bohatyh explained that businesses often use various schemes to evade sanctions. This may include repeated re-registration of companies, the transfer of assets by sanctioned individuals, or fictitious bankruptcy. According to her, criminal liability for evading or violating sanctions is a necessary step to protect national interests.
A working group was established to develop the draft law, consisting of representatives from government authorities and public organizations. As Bohatyh noted, the goal of the document is to align Ukraine with European Union standards, which also plans to implement similar measures by May 2025.
The draft law proposes to establish criminal liability for:
- intentional or negligent violation of sanction restrictions;
- deliberate circumvention of sanctions.
The threshold for liability will be set at 100 non-taxable minimum income amounts (excluding military goods or dual-use items, where the threshold does not apply).
The proposed penalties include:
- a fine ranging from 425,000 UAH to 2 million UAH;
- imprisonment for a term of 2 to 10 years;
- disqualification from holding certain positions or engaging in specific activities for a period of 10 to 15 years.
The explanatory note to the draft law states that its adoption will contribute to creating a preventive impact on individuals attempting to circumvent or violate sanctions. This is expected to become an effective tool for protecting Ukraine's national interests.