

Civil society organizations urge the Verkhovna Rada to adopt amendments to Draft Law No. 12406 that strengthen this document and to reject those that create obstacles to the effective implementation of the criminalization of sanctions circumvention.
Thanks to the joint efforts of Ukraine and its partners, sanctions have become a key instrument of pressure on the aggressor. Draft Law No. 12406, adopted in the first reading, has established the basis for effectively prosecuting violations of sanctions and for adapting national legislation to EU Directive 2024/1226. This draft law is the result of a year of work by more than ten government agencies and the non-governmental sector. With targeted revisions in Parliament, the law could fully reflect the requirements of the recently adopted EU Directive and the best international practices.
However, during the preparation for the second reading, amendments were introduced that undermine its effectiveness and contradict Ukraine’s international obligations. In particular:
- Liability is established only for the intentional non-compliance with, or obstruction of, sanctions, whereas the previous version also provided for liability for negligent violations of sanctions (Amendment No. 26).
- Directive (EU) 2024/1226, in Article 3(3), explicitly requires that “Member States shall ensure that the conduct listed in paragraph 1, point (e) of this Article, constitutes a criminal offence also if committed with serious negligence,” while Recital 4 states: “Certain conduct should constitute a criminal offence also if carried out with serious negligence.”
- Thus, the proposed approach directly contradicts the EU Directive. Moreover, the absence of criminal liability for negligent violations of sanctions will significantly complicate enforcement and render Ukrainian legislation one of the weakest among partner countries. Negligence is criminalized in Germany, Austria, Sweden, Denmark, Croatia, Norway, Switzerland, and Lithuania.
- The current version of the draft law does not provide for a licensing system for exemptions from sanctions, apart from cases involving legal assistance. This contradicts the approach of the EU, the United States, the United Kingdom, and other members of the sanctions coalition, where such a system is standard practice. The absence of licensing:
- violates the requirements of the EU acquis (as noted in screening reports),
- creates risks for human rights (in healthcare, education, everyday needs, etc.),
- undermines Ukraine’s reputation and may result in potential adverse rulings of the European Court of Human Rights.
Currently, exemptions are effectively granted by amending sanctions themselves (for example, in the case of “Freedom Finance Ukraine”). A transparent and regulated licensing procedure would help prevent abuses, and make sanctions policy more flexible, predictable, and aligned with security and economic interests.
This issue could be partially addressed by adopting Amendments No. 405, 407, and 408, which exclude liability for sanctions circumvention when a license has been granted. However, the Committee rejected these amendments.
- A potential loophole is created for the transfer of assets of sanctioned persons through lawyers (Amendment No. 363).
It is proposed to amend the Law with an “exemption” from sanctions, extending to the conclusion and execution of contracts for legal assistance with sanctioned persons. At the same time, the procedure for payment of such services and the methodology for calculating lawyers’ fees would be determined at the bylaw level.
Overall, such changes are necessary in the context of ensuring the right to professional legal assistance. However, it should be explicitly stipulated that the “exemption” applies only to services that fall within the defined fee threshold. If a lawyer’s fee exceeds this threshold, it must be qualified as a sanctions circumvention. More details on these risks are available in the analysis of the Institute of Legislative Ideas.
In light of the above, Ukrainian civil society organizations call on the Verkhovna Rada of Ukraine, during the article-by-article vote, not to support Amendments No. 26 and No. 363, and to adopt Amendments No. 405, 407, and 408 to Draft Law No. 12406, in order to strengthen the state’s sanctions policy, ensure its compliance with EU standards, and increase pressure on the enablers of aggression!
Civil society organizations:
Institute of Legislative Ideas
Economic Security Council of Ukraine
Centre for Global Studies Strategy XXI
U8 Ukrainian Analytical Center
Razom We Stand
Anti-Corruption Headquarters
State Watch
Transparency International Ukraine