UKRAINE Law and Practice Contributed by: Denys Bugay, Volodymyr Vashchenko and Denys Shkarovsky, VB Partners
4.3 Timing Cancellation (Lifting) of Sanctions in Court Cases on lifting sanctions are subject to consideration in the order of simplified proceedings. The legislation sets the time limit for case consideration, which is 60 days from the day of opening proceedings in the case. However, in practice, the legal process for challeng - ing sanctions lasts an average of two to three years. At the same time, cases of decision-making on mer - its (lifting or refusal to lift sanctions) are rare. In most cases, legal proceedings last even longer than the validity period of the sanctions themselves. Cancellation (Lifting) of Sanctions in an Administrative Procedure The deadline for lifting sanctions in this manner is not regulated by legislation. The procedure itself is not public. Accordingly, it is impossible to monitor the terms of consideration of lifting cases in an adminis - trative procedure. It follows from practice that, in gen - eral, the administrative procedure lasts at least a year. 5. Trade and Export Restrictions 5.1 Services As part of the sanctions mechanism, bans on trade transactions with certain countries are introduced through imposing sectoral sanctions. It is worth not - ing that, unlike personal sanctions, the imposition of sectoral sanctions is not widespread. Since sanctions mechanisms have been in existence (ie, from 2014), the National Security and Defense Council has made only five decisions on imposing sectoral sanctions. Bans on export-import transactions apply to Iran, the Russian Federation, Belarus and Nicaragua. For example, in May 2023, the NSDC (National Secu - rity and Defense Council) adopted a decision on the prohibition of trade transactions with Iran regarding the services related to the supply, sale, transfer, pro - duction or use of goods, the international transfers of which are regulated by the Law of Ukraine “On State Control over International Transfers of Military and Dual-Use Goods”.
5.2 Goods Ukraine implements a complex policy concerning trade restrictions. Most of them apply to the Russian Federation as well as to the countries that support the aggressor state. In 2015, Ukraine terminated the Free Trade Agreement between Ukraine and the Russian Federation. On 30 December 2015, the Cabinet of Ministers of Ukraine prohibited the import of certain goods pro - duced in the Russian Federation. Each year, the dura - tion of the resolution is extended. On 9 April 2022, the same cabinet prohibited the import of goods from the Russian Federation. Moreover, in relation to trade restrictions, the following decisions are worth noting. • The NSDC’s decision dated February 2021, pro - hibiting the export-import transactions from the Republic of Nicaragua for the following groups of goods for a period of five years: (i) edible fruits and nuts; citrus or melon peels, (ii) coffee, tea, mate or Paraguayan tea, spices and (iii) tobacco and manu - factured tobacco substitutes. • The NSDC’s decision dated May 2023, prohibit - ing for 50 years trade transactions with the Islamic Republic of Iran with goods, the international trans - fers of which are regulated by the Law of Ukraine “On State Control Over International Transfers of Military and Dual-Use Goods”. • The NSDC’s decision dated November 2023, pro - hibiting trade transactions with the Russian Feder - ation and Belarus in the defence-industrial sphere for a period of 50 years, in respect of goods, the international transfers of which are regulated by the Law of Ukraine “On State Control over International Transfers of Military and Dual-Use Goods”. 6. Civil Litigation and Arbitration 6.1 Force Majeure Ukraine sanctions legislation imposes the obligation to comply with sanctions imposed on any person. There are no exceptions to this (such as obtaining a special permit, licence, etc). The position of the courts regard -
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