UKRAINE Law and Practice Contributed by: Denys Bugay, Volodymyr Vashchenko and Denys Shkarovsky, VB Partners
2.2.6 “Strict Liability” Ukraine currently does not provide for legal liability for sanctions violations.
• bank accounts where the funds of sanctioned per - sons are recorded; • financial operations of sanctioned persons, on behalf of/for the benefit of such sanctioned per - sons, which were refused or stopped due to imposing personal sanctions; • controlled persons and financial transactions (operations) of controlled persons/on behalf of controlled persons, which were refused or stopped due to imposing personal sanctions on sanctioned persons; and • financial transactions that contribute or may con - tribute to the violation/avoidance of restrictions established by personal sanctions (including the cases involving third parties), which have been stopped or refused. Non-banking institutions are also required to submit monthly statistical reports to the National Bank of Ukraine on applying, lifting and amending personal sanctions against the non-banking institution, ulti - mate beneficial owners/owners of significant share (participatory interest), managers and clients of the non-banking institution. Notaries are obliged to notify the territorial administra - tion of the Ministry of Justice of Ukraine of any indi - vidual and legal entity on whom/which sanctions have been imposed and for whom/which notarial acts have been refused, giving information on the notarial act, type of sanction and, in the case of imposing a sanc - tion in the form of asset blocking, the asset in respect of which the person made an application. 3. Recent and Future Legal Developments 3.1 Significant Court Decisions or Legal Developments Ukrainian sanctions are a fairly new field, launched in 2014 as a response to Russian hybrid aggression. Accordingly, this new sanctions regime has not been significantly changed. In respect of legal developments, it is worth noting the following.
2.3 Licensing 2.3.1 Derogation
Unlike the sanctions regimes of the US, EU and UK, the sanctions policy of Ukraine does not provide for the possibility for interested entities to obtain permis - sion from a state authority to carry out a certain type of activity that is subject to sanctions restrictions. 2.3.2 Provision of Legal Services The Constitution of Ukraine guarantees everyone the absolute right to professional legal assistance. Impos - ing a sanction on a person is neither an exception nor results in limitation of the above right. Accordingly, obtaining any licences or permits for providing legal assistance is not required. However, this does not exclude the fact that lawyers and advocates face difficulties in representing/pro - tecting sanctioned persons. This is due to difficulties receiving fees for the services provided – eg, if an asset block is imposed on a sanctioned person. 2.4 Reporting The Law of Ukraine “On Sanctions” does not establish an obligation for the entities implementing sanctions to report on their activities in the area of sanctions. However, such obligations are established at the sub- legal level, and they regulate the sanctions policy in specific fields. For example, banks and non-banking institutions are required to provide the National Bank of Ukraine with monthly statistical reports on: • sanctioned persons (clients of the bank/other participants in financial transactions, and/or other sanctioned persons, whose/of which funds are recorded on bank accounts, and/or sanctioned persons, whose/of which controlled persons are bank clients), on whom/on which at least one of the following personal sanctions, such as block - ing of assets, suspension of financial transactions (operations), etc, is imposed;
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