UKRAINE Law and Practice Contributed by: Denys Bugay, Volodymyr Vashchenko, Denys Shkarovsky and Oleksandr Lukianenko, VB Partners
The constituent elements of the offence of legalisation (money laundering) are as follows. • Object – the established order of circulation of funds and property, and economic security. • Objective element – financial transactions or other actions with property knowingly obtained through criminal means, undertaken to confer a lawful appearance. • Subject – a competent (sane) person. • Subjective element – direct intent, with the specific purpose of concealing the illicit origin of the prop - erty or giving it a lawful appearance. The maximum penalty for this offence is imprisonment for up to 12 years, together with deprivation of the right to hold certain positions or engage in specific activities for up to three years, and confiscation of the property. Additionally, intentional breaches of anti-money laun - dering regulations – such as failure to submit, late sub - mission, or submission of false information regarding financial transactions subject to monitoring – are also criminalised. Penalties for such breaches include: • fines of up to UAH85,000 (approximately EUR1,700); • probation supervision for up to three years; and • deprivation of the right to hold certain positions or engage in specific activities for up to three years. 3.14 ESG-Related Offences In Ukraine, criminal offences exist that may be clas - sified as environmental, social and governance (ESG) violations, although there is no direct ESG classifica - tion in legislation. The main categories are as follows. Environmental Offences Violations of environmental safety rules and duties to prevent environmental harm Criminal Code Articles: 236, 237, 253 and 254. Constituent elements Object: environmental safety, natural resources, and public health.
Objective element: breach of environmental safety rules, failure to take measures to eliminate damage, design or operation of facilities without environmental protection, and mismanagement of land. Subject: natural and legal persons. Subjective element: intent or negligence. Sanctions: fines of up to UAH170,000 (approximately EUR3,500) and restriction or imprisonment for up to ten years, with disqualification from holding certain positions or engaging in certain activities for up to three years. Pollution and degradation of natural resources Criminal Code Articles: 239, 241 and 243. Constituent elements Object: land, water, and air resources; the environ - ment. Objective element: pollution or degradation of resources causing substantial harm to ecology or public health. Subject: natural and legal persons. Subjective element: intent or negligence. Sanctions: fines of up to UAH85,000 (approximately EUR1,800) and restriction or imprisonment for up to five years, with disqualification for up to three years. Illegal appropriation or use of natural resources Criminal Code Articles: 239-2, 240, 240-1, 242 and 244. Constituent elements Object: land, water, subsoil resources, and continental shelf. Objective element: illegal acquisition, extraction, sale or use of natural resources, and breach of protection rules. Subject: natural and legal persons.
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