On 14 August, the Ukrainian parliament adopted legislation creating a legal framework for the imposition of sanctions on countries, foreign individuals and foreign entities. According to the text of the legislation, the criteria for designation include involvement in acts committed by countries and legal persons that constitute a threat to the sovereignty, territorial integrity and economic development of Ukraine. Ukraine intends to mirror the new sector-wide restrictive measures adopted by the EU on 31 July.
More than 20 different types of restrictive measures are included in the legislation, including asset freezes, a prohibition on conducting business in Ukraine, restrictions on financial transactions and travel bans. To be adopted, the sanctions must be approved by Ukraine’s National Security Council and implemented by Presidential Decree.
A list of 172 Russian citizens and 65 entities, the majority of which are also Russian, has reportedly been drawn up as potential targets for the new sanctions. Ukraine’s Prime Minister Arseniy Yatsenyuk announced that these persons had been involved in “sponsoring terrorism, supporting the annexation of Crimea, and violating the territorial integrity of Ukraine”.
For further information on the EU’s sector-wide restrictive measures, please see our Client Update of 31 July.