Govt proposes 10-year sectoral sanctions on Russia, related persons

The Government of Ukraine has decided to submit proposals for consideration by the National Security and Defense Council (NSDC) on the application of ten sectoral special economic and other restrictive measures (sanctions) for a period of 10 years on the Russian Federation and related persons.

According to resolution of the Cabinet of Ministers No. 245 of March 22, in particular, we are talking about a ban on the withdrawal of capital from Ukraine in favor of the Russian Federation, its citizens and legal entities; as well as Ukrainian legal entities, the ultimate beneficiary or participant (shareholder) of which with a share of 10% or more is the Russian Federation, its citizen or legal entity (persons associated with the aggressor state).

It is also proposed to suspend the validity of special subsoil use licenses to persons associated with the aggressor state, and prohibit them from participating in the privatization, leasing of state property and acquiring land plots.

The next sanction is a ban on public procurement of goods originating in the Russian Federation, as well as goods, works and services from persons associated with the aggressor state, with the exception of goods, works and services necessary for the repair and maintenance of goods purchased before the imposition of sanctions.

In addition, the Cabinet of Ministers initiates a ban on the entry of non-military vessels under the flag of the Russian Federation or belonging to legal entities or individuals of the Russian Federation, as well as military ships of the Russian Federation into the territorial sea of Ukraine, its internal waters and ports and on carrying out any types of flights to Ukraine from the territory of the Russian Federation by Russian operators and aircraft registered in the Russian Federation.

Other proposed sanctions include: a ban on the purchase of securities issued by persons associated with the aggressor state; prohibition of issuing permits, licenses of the National Bank for investment in the Russian Federation; termination of cash disbursement on payment cards issued by Russian persons; prohibition of the transfer of technologies, rights to intellectual property objects to persons associated with the aggressor state.

At the same time, the resolution notes that these sanctions do not apply to citizens of the Russian Federation legally residing in Ukraine, or Ukrainian legal entities with their participation.