State register of sanctions will be created in Ukraine

On 29 July 2023, Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on the Application of Sanctions” No. 3223-IX, dated 13 July 2023 (“Law”), enters into force.

The Law creates the State Register of Sanctions (“Register”), which will allow free public access to information on all entities subject to Ukrainian sanctions. The Register will be available in both Ukrainian and English languages in a format that is searchable and accessible for automated data collection. It will also be possible to download information from the Register and generate official extracts.

Furthermore, any information regarding the imposition, modification, or cancellation of sanctions will be recorded in the Register by the following day. This should ensure that the data in the Register is up-to-date.

The Register should be set up within 6 months after the Law entered into force. We anticipate that the creation of the Register will make it easier and quicker for both Ukrainian and foreign entities to access information about sanctions imposed by Ukraine.

Moreover, the Law has also amended the procedure for imposing such type of sanctions as the seizure of assets belonging to an individual or a legal entity, as well as assets over which such person may directly or indirectly exercise rights similar to the right of disposal (“Seizure of Assets”). The Seizure of Assets is a specific type of sanction imposed based on a court decision, not the National Security and Defence Council of Ukraine’s decision, put into effect by the President of Ukraine’s Decree.

The Law extends the period for court consideration of cases on the Seizure of Assets. Now, the court should consider a claim for the Seizure of Assets within 30 days from the date the claim is received, as opposed to the previous 10-day period. Likewise, the person against whom the Seizure of Assets is sought will now have 5 days to file a response, as opposed to the previous 2-day period. Additionally, the term for considering an appeal has been extended from 5 to 15 days from the date the appeal is received.

The Law also establishes a restriction that claims for the Seizure of Assets may be filed only during the legal regime of martial law. At the same time, the termination or cancellation of the martial law regime is not a ground for closing the proceedings on the application of the Seizure of Assets.

The updated rules will apply to: (1) future claims; (2) claims and appeals that have been filed but where proceedings have not yet commenced; (3) ongoing cases; and (4) cases where the first instance decisions have not yet entered into force.

Additional notes

This LEGAL ALERT is issued to inform AVELLUM clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The information above does not constitute legal or other advice and should not be considered a substitute for specific advice in individual cases.

For further information on the Law and other issues related to the imposition of sanctions in Ukraine, please contact partner Yuriy Nechayev.