Sanctions and everything you need to know about them – part I

09/ 03/ 2023

Author: Darya Vasina, attorney at Dynasty Law & Investment First of all, it should be noted that the legal basis of the mechanism for applying sanctions is the Law of Ukraine On Sanctions dated 14.08.2014 No. 1644-VII, to which the Law of Ukraine On Amendments to Certain Legislative Acts of Ukraine Regarding Increasing the Effectiveness of Sanctions, related to the assets of individuals dated 05/12/2022. No. 2257-IX, amended. Thus, the current legislation establishes that sanctions, first of all, are aimed not at punishment, but at the protection and prevention of violation of the national interests of society and the state, thus, sanctions are special economic and other restrictive measures. Therefore, sanctions are not a mechanism of responsibility, because the actions of the subject, as a result of which sanctions may be applied to the latter, do not require the establishment of signs of the composition of the offense. That is, sanctions are a reaction, one might say, the states response to actions that threaten the fundamental principles of its existence. The Law itself contains a general list of those to whom sanctions may be applied, however, attention should be paid to the fact that such an entity may change depending on the type of sanctions that may be applied by the state. And yet, the number one subjects to whom restrictive measures can potentially (probably) be applied are representatives of the country, which poses a threat to the state and its interests. As a result of the full-scale invasion of the Russian Federation in February 2022, the most relevant type of sanctions, at the moment, is a sanction that provides for the possibility of seizing the assets of individuals or legal entities, as well as their assets, in relation to which they can directly or indirectly take actions, that is, influence on the right to dispose of them. In the following parts, we will tell you in more detail about the types of sanctions, the grounds and conditions of their application, as well as analyze the first court decision on this topical issue.

Author: Darya Vasina, attorney at Dynasty Law & Investment

First of all, it should be noted that the legal basis of the mechanism for applying sanctions is the Law of Ukraine “On Sanctions” dated 14.08.2014 No. 1644-VII, to which the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding Increasing the Effectiveness of Sanctions, “related to the assets of individuals” dated 05/12/2022. No. 2257-IX, amended. Thus, the current legislation establishes that sanctions, first of all, are aimed not at punishment, but at the protection and prevention of violation of the national interests of society and the state, thus, sanctions are special economic and other restrictive measures.

Therefore, sanctions are not a mechanism of responsibility, because the actions of the subject, as a result of which sanctions may be applied to the latter, do not require the establishment of signs of the composition of the offense.

That is, sanctions are a reaction, one might say, the state’s response to actions that threaten the fundamental principles of its existence.

The Law itself contains a general list of those to whom sanctions may be applied, however, attention should be paid to the fact that such an entity may change depending on the type of sanctions that may be applied by the state.

And yet, the number one subjects to whom restrictive measures can potentially (probably) be applied are “representatives” of the country, which poses a threat to the state and its interests.

As a result of the full-scale invasion of the Russian Federation in February 2022, the most relevant type of sanctions, at the moment, is a sanction that provides for the possibility of seizing the assets of individuals or legal entities, as well as their assets, in relation to which they can directly or indirectly take actions, that is, influence on the right to dispose of them.

In the following parts, we will tell you in more detail about the types of sanctions, the grounds and conditions of their application, as well as analyze the first court decision on this topical issue.