Draft bill #12406 of January 14, 2025
Sponsor: the President
Status: sent for review to the Law Enforcement Committee
Who is affected: individuals under sanctions, the National Securities and Stock Market Commission, the National Bank of Ukraine, and the Ministry of Justice
Summary:
- a new article will be included in the Criminal Code to establish liability for crimes against the foundations of national security of Ukraine — sanctions, as well as intentional circumvention of sanctions. This article will stipulate that such crimes are considered grave
- a person will be criminally liable:
- if the violation involves assets or financial transactions worth over 100 non-taxable minimum incomes (1,700 UAH)
- for military and dual-use goods (i.e., those that can be used in both military and civilian spheres), this threshold will not apply. Such violations will be punishable regardless of value
- there will be no statute of limitations for such crimes
- additional penalties:
- prohibition on holding certain positions or engaging in specific activities
- penalties will apply not only to individuals but also to companies involved in the crime
- special confiscation of property for the committed crime will be introduced
- the following activities will be considered circumvention of sanctions:
- purchasing of blocked assets or other actions involving them, such as moving, converting, concealing, or masking them
- driving a company into bankruptcy or fictitious bankruptcy if it or its owner is sanctioned with asset blocking.
What is right: the introduction of criminal liability for violating sanctions will contribute to stricter compliance with the law and reduce the risks that guilty individuals and legal entities avoid accountability.