Withdrawal of Sanctioned Assets in Favour of Ukraine

by Meifan Honcharuk
Monday, May 16, 2023
Withdrawal of Sanctioned Assets in Favour of Ukraine

The start of confiscation of assets of persons who committed military and political crimes against Ukraine

In Ukraine identified, about 6.800 people whose assets were blocked by sanctions and referred to the National Security and Defense Council of Ukraine for consideration. Among them, 250 people are Ukrainians, and their assets will be transferred to the state. The circle of persons whose assets will be seized and transferred to the state includes those who have committed crimes against the state, including supporting the occupation of Ukraine. Currently, it is not possible to name the total amount of compensation that these persons will pay to Ukraine for their criminal actions. Still, the amount of assets exceeds several years' income of a large private enterprise.

According to the head of the department of sanctions policy of the Ministry of justice, Inna Bohatyh, Ukraine is currently the only country that has created a mechanism for recovering assets based on the amendments to the law On sanctions dated May 24, 2022

"After the appearance of the relevant decrees of the president on the basis of the decisions of the National Security Council, the Ministry of justice acquires the authority to check the persons subject to sanctions for the presence of assets and grounds for the application of recovery sanctions," Inna Bohatyh.

As of mid-May, the Ministry of justice filed 20 lawsuits for the seizure of assets, 19 of them were satisfied, and 17 entered into force. Work continues on the recovery of Oleg Deripaska's assets and Vladimir Saldo, a collaborator of the temporarily occupied Kherson region.

Notably, the reform of the law on sanctions applies not only to the assets that the sanctioned person owns directly but also to those assets that he owns indirectly. In this way, the volume of extraction and transfer increases.

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