The Fate of Russian Assets Confiscated in Ukraine

More than two years ago, a new mechanism for asset recovery in favor of the state was launched in Ukraine. Due to the full-scale invasion of Russia in Ukraine, the Law on Sanctions was amended, providing that the assets of persons supporting Russia’s armed aggression could be confiscated in Ukraine by a court decision.

This approach has become a novelty for international and national practice because, as a general rule, sanctions are not used as a punitive measure, but only exert political pressure. However, the existing legal mechanisms of confiscation proved incommensurate with the new challenges associated with the brutal war in the center of Europe in the 21^st century.

While Ukraine’s international partners are still looking for new solutions to bring Russia to at least material liability for the damage caused to Ukraine, more than 43 court cases have already been heard under the sanctions mechanism and more than a thousand units of assets of Putin’s accomplices have been recovered.

This study describes how the updated Ukrainian sanctions function, what are the risks and challenges of such an approach, and what happens to assets after their confiscation.

After all, it is important that the recovered property be effectively used for the country’s primary needs in the war.

This study was prepared with the financial support of Sweden. Opinions, conclusions, or recommendations are those of the authors and compilers do not necessarily reflect the views of the Government of Sweden. The authors and compilers are solely responsible for the content of this research.

This study was prepared by

Head of the department: Kateryna Ryzhenko, Deputy Executive Director of Transparency International Ukraine for Legal Affairs

Authors of the study

Nataliia Sichevliuk, Legal Advisor at Transparency International Ukraine,

Andrii Shvadchak, Legal Advisor at Transparency International Ukraine