Ukraine is set to impose penalties for evading sanctions, including fines, imprisonment, and confiscation of assets.

Ukraine is preparing to introduce criminal liability for violating and circumventing sanctions.

As reported by “Judicial and Legal Newspaper”, the relevant draft law 12406 was registered in the Verkhovna Rada by President Volodymyr Zelensky. According to the document, violations or circumventions of sanctions will be punishable by up to 10 years of imprisonment. Furthermore, there will be no statute of limitations, similar to crimes against the fundamental national security of Ukraine. Jurisdiction will be assigned to the Security Service of Ukraine (SBU).

The Ministry of Justice of Ukraine explained the importance of legislating the prohibition of violating and circumventing sanctions.

“Firstly, this is a step towards European integration and alignment with EU legislation. In April 2024, the European Union adopted the relevant Directive, which is mandatory for all member states. Secondly, it is an effective tool for preventing sanctions violations and for filling the state budget,” the agency emphasized.

The draft law, in particular, amends the Criminal Code of Ukraine by adding a new article and establishes criminal liability for two types of violations: the violation of sanctions (intentional or negligent) and their circumvention (only intentional). The “monetary threshold” for criminalization is set at 100 non-taxable minimum incomes of citizens (for 2025 — 151,400 UAH).

Violators face fines (from 25,000 to 120,000 non-taxable minimum incomes), imprisonment (from 2 to 10 years), prohibition from holding certain positions (up to 15 years), confiscation of property, and liquidation with confiscation of property for legal entities.

Similar laws are already successfully implemented in the USA, the UK, Canada, and other developed countries. It's time for Ukraine to take action! The Ministry of Justice supports the tightening of sanctions policy and will continue efforts to recover sanctioned assets for the state, protecting national interests,” the Ministry of Justice stressed.