February 2022 - Ukraine Sanctions Explained - UK Defence Club
The Law of Ukraine on Sanctions No. 1644-VII has been in force in Ukraine since 2014 and provides for a non-exhaustive list of 24 possible sanction types including, but not limited, to:
- freezing of assets;
- temporary restriction on person’s right to use and dispose of property;
- restriction on trade transactions and prohibition on the movement of capital outside Ukraine; and
- restriction on transit and transportation in the Ukrainian territory.
The decision on the application of sanctions is taken by the National Security and Defense Council of Ukraine and put into effect by a decree of the President of Ukraine. The restrictions may be imposed for a specific period or indefinitely.
Any counterparty dealing with entities or individuals on the sanctions list is strongly recommended to assess the exact scope of the sanctions applicable and the implications. Failure to proceed with such verification and assessment may result in legal consequences, including criminal charges.
It is important to note that Ukrainian sanctions are of a personal nature. This means that their application bans a person from conducting any commercial activity in the territory of Ukraine. However, this does not necessarily extend to holding and/or subsidiary companies and/or shareholders etc.
We recommend that specific advice is sought from Ukrainian lawyers when in doubt about the application of restrictions.
As always, if Members have any questions in relation to the above issues they are invited to contact the Club for further information.
Thank you to the UK Defence Club for the above article. See the original here.
Senior Claims Executive
You may also be interested in:
Russia-Ukraine Crisis: External Resources
The Club have collated external resources and information relevant to the current crisis in Ukraine.
Circular 03/22: General Trade Licence dated 17 March 2022 – Reporting of vessel calls to Russia and transiting Russian territorial waters
On 17 March 2022 the UK Government published a General Trade Licence in part to clarify earlier amendments to the UK Russia (Sanctions) (EU Exit) Regulations (the “Regulation”). Specifically, the licence addresses the issue as to whether it is lawful under the Regulation for insurers and reinsurers domiciled or operating from the United Kingdom to provide insurance for vessels calling at Russian ports or transiting Russian territorial waters.
UK Sanctions: An Update
The UK has implemented a number of sanctions in response to Russia’s invasion of Ukraine.