Ukraine

Market Overview
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Introduction

Starting from 05:30 of 24 February 2022, Ukraine imposed martial law on its whole territory as a result of the military aggression of the Russian Federation. On the first day of the full-scale invasion, the President of Ukraine signed the Decrees On the Formation of Military Administrations and On General Mobilization.

During 2022, almost one million people were mobilized into the ranks of the Ukrainian Armed Forces. According to the Ukrainian Parliament Commissioner for Human Rights, another 14.5 million Ukrainians, mainly women and children, left the country in 2022. Additionally, 4.7 million people changed their place of residence in Ukraine and were registered as internally displaced persons.

The year 2022, marked by the war, was notable for the adoption of normative legal acts that significantly changed the Ukrainian legal framework. During the year, the Ukrainian Parliament adopted 399 wartime laws and regulations.

Businesses in Ukraine had to adapt to working conditions between air raids, energy breakdowns due to the terrorist missile attacks on energy infrastructure, and curfews, amid sharp revenue declines, constant changes in the legal field and a personnel crisis due to migration and mobilization of employees. According to USAID, since the start of the war, 19% of Ukrainian companies were forced to relocate, most of them from the East of Ukraine.

Flexibility in such a situation was the only way for the business to survive. Production chains on the domestic market underwent significant changes. Thanks to international aid in the form of equipment and modern air defense systems, Ukraine is gradually moving away from power outages giving the businesses the opportunity to plan their activities ahead.

Ukraine’s Economy

The Ukrainian government estimates that the national economy fell by about a third after the most difficult year in the country’s recent history. Irreversible losses in industry have already exceeded 30%. According to the Center for Economic Strategy, such an annual decline will be the largest in the entire history of Ukrainian independence.

Some sectors of the economy have been affected much more. The metallurgical industry, historically one of the locomotives of the Ukrainian economy and exports in particular, has suffered some of the most significant losses. The mining and metallurgical complex finished 2022 with a 70% decline in both production and exports as a result of the Russian occupation, the destruction of two large metallurgical plants in Mariupol and the closure of seaports through which products were exported. Other sectors, such as aviation, have completely vanished.

According to the Kyiv School of Economics, by the end of 2022 direct and indirect losses of Ukraine exceed USD 600 billion, of which about USD 138 billion is infrastructure and production destruction.

The Ukrainian’s ability to avoid the most negative and pessimistic scenarios was due to the unprecedented support of partner countries and the fact that citizens and businesses have learned to live in the harsh conditions dictated by the war. Throughout 2022, Ukraine received more than USD 30 billion in grants and concessional loans. This aid is expected to reach USD 38 billion in 2023.

Business Environment

Ukraine’s possible EU accession

The prospect of EU accession is one of the key changes that improved the business climate in Ukraine. On 4 October 2022, the OECD Council recognized Ukraine as a potential member and started an initial dialogue on accession.

The prospect of EU membership is an important driver of reforms: preparations for membership will require the completing a comprehensive transformation of all areas. Thanks to the candidate status and movement towards membership, the business climate in Ukraine will approach the conditions of the EU countries.

Cancellation of duties and quotas on Ukrainian exports

In May 2022, the EU introduced a duty-free trade regime with Ukraine for a period of one year. The abolition of customs duties and quotas on Ukrainian exports gave Ukrainian manufacturers the opportunity to more widely present their products on European markets. The same right of duty-free export for Ukrainian products is provided by Canada and Great Britain. During the war, Ukrainian manufacturers were able to sell almost USD 37 billion worth of products abroad. The main export goods with a share of about 13% are sunflower oil and corn, which were exported by sea thanks to the grain agreement. It is expected that the duty-free trade regime will be extended for another year.

Transport visa-free regime with the EU

On 29 June 2022, Ukraine and the EU signed the Agreement on Road Freight Transport, also known as the "transport visa-free regime". The agreement abolishes the need for Ukrainian carriers to obtain permits for bilateral and transit traffic to EU countries and allows to avoid stopping the export of Ukrainian products through road checkpoints. The agreement also provides for measures to simplify the recognition of driver’s documents. The agreement has been extended until 30 June 2024.

Export logistics

One of the main consequences of the Russian invasion was an almost complete change in the country’s export logistics. This was caused by the capture and blockade by the enemy of most of the seaports, through which almost 75% of Ukraine’s total trade passed, which is 120 million tons of cargo per year. And while the Black Sea grain corridor has started to work for agricultural market, the situation remains critical for the metallurgy. In the absence of the same export opportunity that the Ukrainian agribusiness was provided with through the Black Sea grain deal reached through the mediation of the UN and Turkey, metallurgical exports fell by 62%.

In July 2022, the European Commission made changes to the indicative maps of the Trans-European Transport Network (TEN-T), including Ukrainian logistics routes. This decision contributed to the implementation of the “Paths of Solidarity” initiative regarding the export of Ukrainian agricultural products and the delivery of humanitarian aid to Ukraine.

Tax benefits and regulatory policy

From the first days of Russia’s full-scale invasion into Ukraine, the Verkhovna Rada of Ukraine and its committees actively began working on wartime legislative acts in the economic sphere.

In the economic sphere the Verkhovna Rada of Ukraine also adopted a number of laws, in particular:

  • introduced monitoring of existing and potential threats to the national security of Ukraine in state banks, state-owned enterprises, and companies (No. 2182-IX);
  • simplified the mechanism for obtaining state funds by business entities for compensation of losses related to martial law (No. 2175-IX);
  • provided protection in the field of intellectual property during martial law (No. 2174-IX).
  • introduced a new type of sanctions – confiscation of assets owned by individual persons or legal entities, whose actions posed a significant threat to national security, sovereignty or territorial integrity of Ukraine (No. 2257-IX);
  • determined the conditions for relocation processes of enterprises under martial law (No. 2468-IX).

In 2022, a total of 46 laws in the field of finance, tax and customs policy were adopted by the Verkhovna Rada of Ukraine since the full-scale invasion of the Russian Federation into the territory of Ukraine.

The shock experienced by the business from the start of the war was softened by introducing tax benefits and easing reporting requirements. The Ukrainian Parliament passed two laws that postponed the taxes payments and reporting, introduced a moratorium on all types of tax audits, and exempted those who could not pay taxes on time from liability.

Starting from 1 March 2022, land fees (land tax and rent for state and communal land plots) were abolished. This rule will expire on December 31 of the year following the year in which martial law is lifted.

In June 2022 the Verkhovna Rada introduced tax incentives for industrial parks. The said incentives provide for the exemption from VAT and import duties on importation of new equipment (without the right to leasing or use by third parties), exemption from income tax throughout a ten-year period (if the tax amount is invested in production) and the right of local self-governing bodies to establish preferential property tax rates and land fees.

Confiscation of private assets of the aggressor and its supporters

Ukraine has become the first country to define on a legislative level the possibility of applying the sanction of confiscation of private assets of the aggressor and its supporters. On 2 May 2022, corresponding amendments were made to the Law of Ukraine On Sanctions according to which assets are subject to confiscation for actions that posed a significant threat to the national security, sovereignty or territorial integrity of Ukraine (including through armed aggression or terrorist activities) or significantly contributed (including through financing) to the commission of such actions by other persons.

The said applies to the assets of people who made decisions or participated in armed aggression against Ukraine, as well as collaborators who supported the occupation administrations and authorities or held referendums or elections in the occupied territories. The second category is represented by the assets of persons who directly contributed to the invasion and persons indirectly related to the war. They include:

  • those who expressed the intention and readiness to use their army to promote armed aggression, provided Russia with the use of territory, civil or military infrastructure for the accommodation of its army and supplies, allowed the Russian army to cross its border into the territory of Ukraine;
  • big business represented by the companies that over the last year paid over USD 1 million in taxes to the Russian state budget;
  • benefactors and donors who made donations to state authorities or the military administration of Russia for more than USD 20.500 (UAH 750.000);
  • buyers of Russia Government Bonds in the amount of USD 82.000 (UAH 3 million) per year;
  • propagandists and distributors of Russian narratives.

The conditions for confiscation of assets are as follows:

- it can only be applied during the period of the legal regime of martial law;

- preliminary application of sanctions on assets in the form of their blocking.

Confiscation of assets is possible only if these two conditions are present. The legal regime of martial law narrows in time the possibility of confiscation of assets and encourages the state to impose sanctions as quickly as possible.

Ukraine’s partners, who have already imposed unprecedented sanctions against Russia and froze private Russian assets worth billions, and also introduced a corresponding instrument or are actively looking for ways to confiscate and use these funds.

The Ukrainian practice will serve as an example for future approaches and to confirm or refute the viability of such sanctions as confiscation of assets of persons who promote military aggression, and, accordingly, the possibility of using such tools to effectively prevent wars and compensate the affected countries.

Current Opportunities for Investors

The Ukrainian authorities are doing everything possible to kickstart the investment process in the country’s recovery now, rather than waiting for the end of the war.

In July 2022, Ukraine presented a powerful and comprehensive reconstruction plan at a conference in Lugano. The implementation of this strategy is designed for ten years and has been enthusiastically welcomed and supported by international partners. Ukraine sets itself an ambitious, but quite realistic goal: to make the leap from a transitional to a developing economy by 2032.

A unique electronic platform Advantage Ukraine has already been created to attract foreign investors to the Ukrainian economy. The platform includes more than 500 investment projects and opportunities in 10 sectors of the economy. After the registration on the platform each potential investor will receive comprehensive information about investment opportunities, specific projects and the benefits that it will have from investing in the economy of Ukraine.

In particular, Ukraine is expecting private investments in defense, agriculture, IT, renewable energy, gas production and storage, development of logistics, construction, and more. Ukraine offers facilities for construction that can be located in industrial parks, tax benefits, financing from international financial organizations and coverage of credit risks.

According to the Ministry of Economy of Ukraine, as of December 2022 Advantage Ukraine platform Ukraine has received more than 500 applications for future investments in the country.

Forecast for 2023

In 2023, Ukraine will focus on meeting the requirements for its accession to the EU. Entrepreneurs are waiting for the tax system and customs reforms and hope for the rapid and effective reformation of a judicial system and a real fight against corruption. There are high expectations for implementation of the National Recovery Plan, which is estimated at USD 750 billion.

The key risk to the functioning of the Ukrainian economy in 2023 will be a decline in production and an increase in unemployment. Investment development of the country will be difficult due to war risks, withdrawal of labor resources to the ranks of the armed forces, energy terror, and logistical problems.

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Litigation

The introduction of martial law in Ukraine in February 2022 has created a difficult legal and operational environment for the activities of not only domestic but also foreign companies in Ukraine. The actions of state bodies and enterprises, dictated by the specifics of martial law, sometimes create significant challenges for the stability of foreign business. In such conditions, it becomes particularly important for representatives of foreign companies to have a clear understanding of the potential risks and available legal mechanisms for protecting their rights and interests. 1. The current investment climate in Ukraine is favourable for foreign businesses Despite the ongoing hostilities, Ukraine remains an attractive investment destination for foreign businesses. Numerous multinational companies that had a manufacturing or trading presence in the country before the invasion began continue to operate there. At the same time, new players are emerging — those who have made a strategic decision to invest in the Ukrainian economy even under the conditions of martial law. For example, according to information posted on the UkraineInvest website, 1109 new foreign companies were registered in Ukraine in 2024. The largest number of investors were American, Turkish, and Polish companies. Also, based on open sources, the British company Unilever is building a production plant in the Kyiv region, with investments of over €20 million, and the Swiss company Nestlé recently built a new factory in Volyn region, investing approximately $50 million. The involvement of American businesses, whose presence in Ukraine is steadily growing, deserves special attention. In particular, on 26 December 2023, National Nuclear Energy Generating Company Energoatom signed a $437,5 million contract with Westinghouse Electric Company LLC to purchase equipment for the implementation of the AP1000 nuclear facility for the Khmelnytskyi Nuclear Power Plant. The parties signed a cooperation agreement in this area back in 2021, but it was during the war that they advanced to a new level of cooperation. Moreover, on 30 April 2025, Ukraine and the United States of America signed an agreement to establish the US-Ukraine Investment Fund for Reconstruction, designed to attract private capital from the United States for the reconstruction and modernisation of the Ukrainian economy, ensure financing for critical projects in the field of mineral resource development, promote innovation, technological development and recovery, and improve Ukraine’s investment climate. According to media reports, one of the first potential participants in this fund is the investment company TechMet, which has expressed interest in financing a project to extract lithium in the Kirovohrad region — a resource that is critical for the development of battery technologies and green energy. In addition, investment activity by American companies in the field of innovation and start-ups has intensified. For example, during the full-scale invasion, the Pravo Venture technology platform was created, which connects accredited US investors with Ukrainian start-ups. Currently, the platform works with start-ups such as Mosqitter and Promin Aerospace. Thus, despite the martial law, foreign companies continue to invest in Ukraine. Moreover, promising projects that help attract foreign investment continue to develop. 2. Key challenges under martial law Despite the positive dynamics of investment activity, this does not fully guarantee protection of foreign businesses from illegal actions by state bodies and enterprises, especially under martial law conditions. The risk of unjustified use of enterprise capacities, together with the risk of expropriation of property for state needs, is currently a serious obstacle to doing business in Ukraine. According to the Law of Ukraine “On the Legal Regime of Martial Law,” the military command and military administrations under martial law have the right, among other things, to use the capacities and labour resources of enterprises, institutions, and organisations of all forms of ownership, as well as to forcibly expropriate privately owned property for defence needs. On the other hand, currency restrictions introduced by Resolution No. 18 of the National Bank of Ukraine of 24 February 2022 significantly complicate international currency transactions. In particular, restrictions on cross-border transfers of currency values from Ukraine, the establishment of a 180-day deadline for settlements under export-import operations, as well as increased financial monitoring requirements reduce the financial flexibility of foreign companies. This has a negative impact on liquidity planning and management, especially for businesses integrated into international supply chains. At the same time, it should be noted that currency regulation in Ukraine is dynamic and constantly changing in line with the current economic situation and financial stability needs. In particular, the National Bank of Ukraine is gradually introducing certain relaxations, such as expanding the list of permitted currency transactions, simplifying restrictions on cross-border fund transfers, and softening requirements for import settlements. These changes open up opportunities for a partial resumption of international payment activities. In addition, another pressing challenge for foreign businesses in Ukraine is the labour shortage caused primarily by mobilisation measures. Although the Law of Ukraine “On Mobilisation Preparation and Mobilisation” provides for the possibility of conscripting a substantial part of the male population, in practice, many companies have adapted to the new conditions, finding effective ways to preserve production capacity and retain qualified personnel. In particular, the procedure for reserving employees, approved by Resolution No. 76 of the Cabinet of Ministers of Ukraine of 27 January 2023, provides practical tools for reserving key specialists, which contributes to stable operation and business development in conditions of martial law. Another significant issue is the improper performance by state bodies and enterprises of their contractual or statutory obligations. Citing force majeure circumstances, including those caused by the war, some entities are in fact trying to avoid responsibility or postpone the fulfilment of their obligations for an indefinite period. In particular, certain difficulties are observed in the activities of the state enterprise Guaranteed Buyer, which faces objective challenges in timely settlements with renewable energy producers for electricity already supplied. However, national courts have increasingly ruled in favour of energy producers, obliging the state enterprise Guaranteed Buyer to make full payments to the producers. Consequently, despite all the challenges faced by both foreign and Ukrainian businesses under martial law, companies have still been able to adapt to the new realities and specifics of operating in unusual conditions. 3. Judicial and arbitral protection of rights and interests Even under martial law, Ukraine’s judicial system continues to function steadily in most regions of the country. This allows foreign companies to apply to national courts or commercial arbitration institutions to protect their rights and legitimate interests in cases provided for by law. It is important for foreign companies that administrative courts in Ukraine continue to actively protect businesses from unlawful actions by state authorities. Such disputes include, in particular tax-related matters – such as appeals against tax notices-decisions, additional charges of monetary obligations or blocking of tax invoices. Foreign investors can be confident that they have effective legal mechanisms for defending their interests and protect themselves from excessive administrative pressure. In turn, commercial courts provide effective protection in cases arising within the framework of contractual and other property relations between business entities, in particular between foreign companies and state enterprises. The most common disputes concern non-performance or improper performance of obligations under contracts for supply,  construction, lease, service provision, and other agreements. It is also important that commercial courts handle bankruptcy cases, which allows foreign companies to enforce their claims within the liquidation procedure, file creditor claims, and initiate appropriate procedural actions to protect their property interests in the event of a counterparty’s financial insolvency. At the same time, it should be noted that in regions close to active combat zones, the activities of courts may be partially restricted. In particular, some courts operate exclusively through electronic document exchange, specifically via the Electronic Court subsystem. In contrast, in the western and central regions, as well as in Kyiv itself, the courts continue to function in a stable manner. Accordingly, regardless of the timeframes for case consideration, judicial and arbitration protection mechanisms remain available to foreign businesses and are capable of ensuring the effective restoration of violated rights, which is an especially critical factor in the challenging conditions of wartime. 4. Alternative legal instruments for protecting rights and interests In addition to court or arbitration proceedings, foreign businesses in Ukraine can use a number of alternative legal instruments to protect their rights and legitimate interests. Pre-trial dispute resolution becomes particularly important in a state of martial law, when a rapid response to violations of rights is crucial. As of 15 December 2023, the Law of Ukraine “On Administrative Procedure” has been in force in Ukraine, which for the first time systematically regulates the procedure for external administrative activities of executive bodies, local self-government bodies, and other entities that adopt administrative acts. It guarantees interested parties, including foreign companies, the right to be involved in the consideration of the relevant administrative case: to present their arguments, submit documents, review the case materials, and, in case of disagreement, appeal against the decision of a particular body in a pre-trial procedure. In practice, this means that before applying to the court, a foreign business may request a review of a decision or action of a public authority directly with that authority or with a higher authority. For example, a decision of a territorial body of the State Tax Service may be appealed to the central authority, namely, directly to the State Tax Service of Ukraine. At the same time, in the event of disputes related to business operations, foreign companies can also use pre-trial settlement as an effective tool to respond to violations by counterparties, in particular, state enterprises. This approach allows an acceptable result to be achieved without resorting to a commercial court or arbitration. In some cases, even the mere fact of filing a claim with a commercial court encourages the other party to engage in dialogue, which makes it possible to settle the dispute amicably even before a court decision is made. Current Ukrainian legislation also provides for the possibility of mediation — voluntary settlement of a dispute with the participation of a neutral intermediary. The Law of Ukraine “On Mediation” of 15 December 2021 allows conflicts to be resolved without resorting to court, which can be useful in cases where a foreign company seeks to avoid publicity. 5. Practical recommendations As a result, operating a foreign business in Ukraine during martial law requires not only strategic foresight but also flexibility in risk management. Below are key practical tips for foreign companies that can help reduce legal risks and ensure effective protection of rights and interests in Ukraine. Before implementing an investment project, it is advisable to conduct a comprehensive legal review that considers not only the usual corporate and tax risks, etc., but also the specific risks of martial law — in particular, the possibility of expropriation of enterprise property for defence purposes or the use of enterprise resources by military command or administrations. Investment or foreign economic agreements should include clearly defined provisions on force majeure circumstances, changes in legislation, mechanisms for protecting business and investments, the possibility of arbitration, etc. Such foresight minimises the risk of unilateral revision of obligations or loss of control over assets. Careful documentation of each stage of communication with representatives of state bodies and enterprises is a prerequisite for successful legal protection. In the event of litigation, these documents will constitute key evidence. In the event of a dispute with state authorities or state enterprises, it is not always recommended to go to court immediately. In some cases, it may be more appropriate to first attempt pre-trial dispute resolution tools, which can significantly save time and financial resources. If the pre-trial procedure has not yielded results, it is necessary to apply to the court as soon as possible. It is particularly important not to delay filing claims, as the general statute of limitations is three years, but depending on the circumstances of the particular case, it may be shorter — in particular, six months or even less. In the difficult conditions of martial law, it is extremely important for foreign businesses to use the services of experienced legal advisors. Cooperation with specialists who are deeply versed in the Ukrainian legal field, judicial practice, and procedural aspects significantly reduces legal risks, ensures proper protection of rights and interests, and contributes to the successful conduct of business, regardless of the format or scale of presence in the Ukrainian market. Authors: Kateryna Manoylenko, Partner at GOLAW, Head of Litigation and Dispute Resolution practice, Attorney at law Anastasiia Klian, Counsel at Litigation and Dispute Resolution practice at GOLAW, Attorney at law
GOLAW - November 5 2025
Press Releases

Ukraine’s White-Collar Crime Practice Enters a New Era: Insights from Denys Bugay, Leading Expert and Founding Partner at VB Partners

Denys Bugay – founding partner of the law firm VB Partners and former President of the Ukrainian Bar Association – shares his perspective on how Ukraine’s White-Collar Crime practice is evolving. He outlines the key trends, challenges, and future directions for legal professionals in this complex and fast-changing field during wartime. — According to the survey ‘50 Leading Law Firms of Ukraine’, the criminal practice retains its leading position. How would you describe the state of the Ukrainian White-Collar Crime industry? The Ukrainian WCC practice has been actively developing over the past ten years. The war has become a catalyst, increasing the number of proceedings and strengthening the demands for justice. The NABU/SAPO anti-corruption infrastructure remains a key generator of anti-corruption efforts. However, despite the increase in the number of cases, there has been a decline in their quality. Law enforcement agencies often respond to public demand for ‘quick landings’, which leads to the return of old approaches when statistics are prioritised over substance. The effectiveness of investigators and detectives is assessed not by the quality of investigations and court verdicts but by the number of suspicions served, assets seized or bail amounts. This year, Ukraine has been included in the global guide White-Collar Crime 2024 by Chambers and Partners. This confirms the maturity of the WCC sector and its compliance with global trends. — Why do you think the Chambers White-Collar Crime 2024 research has become so important for the Ukrainian legal community? This study is important for the Ukrainian legal community for several reasons. Firstly, it recognises the maturity of the Ukrainian WCC market as a separate industry and its integration into the global legal community. Chambers and Partners is a leading research company with over 30 years of experience covering 200 jurisdictions. Its rankings are the most respected in the world. In fact, 86% of Fortune 500 companies use this ranking to select legal counsel. Our analysts have been included in the annual White-Collar Crime guide, which contains information on more than 40 jurisdictions, and Ukraine has been included for the first time. This research is the largest review of WCC practice in English. It covers key trends, challenges and the future of the practice. Such recognition helps Ukrainian lawyers to become visible on the global legal map, and foreign companies increasingly seek our advice on cross-border cases. — How do you assess the evolution of WCC practice in Ukraine over the past ten years? The evolution of the practice has been dynamic and multidirectional. Ten years ago, this area was just being formed, and even the term White-Collar Crime was perceived as a novelty. We began to use it based on the Western experience. Gradually, lawyers who dealt with criminal cases also began to separate this practice into specialised ones. Over time, WCC practices have gained international recognition. Since 2014, we have been included in international rankings such as Best Lawyers, Legal 500, Who's Who Legal, and later Chambers. This proved that Ukrainian lawyers meet the highest international standards in handling complex criminal cases. Another important aspect of the evolution is international cooperation. Today, Ukrainian lawyers are increasingly working on cross-border cases related to international legal aid, Interpol and extradition. — What are the main features of the Ukrainian WCC practice compared to the international one? In general, our practice is developing in line with international experience. However, there are several significant features. First of all, it is a different range of cases. In Ukraine, the WCC practice is mainly focused on embezzlement, anti-corruption investigations, tax crimes, cybercrime and abuse of power. In Western jurisdictions, the WCC covers a wider range of cases, including securities market manipulation, corporate liability, banking crimes, cartel agreements and antitrust violations. The second feature is international cooperation. Although Ukrainian practice demonstrates significant progress in international cooperation, this area has not yet reached the level of automation and scale that is available in Western countries. At the same time, the expansion of the geography of extraditions and international requests shows positive dynamics. Also, the institution of plea bargaining. In Ukraine, the plea bargaining institution has gained popularity only in the last few years, while in the US and EU, it is a standard tool for resolving WCC cases. And then there are internal investigations. In Western countries, internal investigations are a separate, powerful area of work. In Ukraine, this tool is hardly ever used, as businesses often do not see effective mechanisms for compensation. — What is your professional forecast? What will be relevant in the WCC industry? The next decade will be a period of qualitative changes for WCC in Ukraine and will be determined by the following trends. First, it is the growth of international cooperation. Ukraine is actively integrating into the global system of transnational justice. Joint investigative teams, expanding the geography of international legal requests, extradition requests - all this will create new challenges for WCC attorneys. The second is the criminalisation of sanctions violations. It is expected that the introduction of legislation on criminal liability for sanctions violations will become a significant area of focus for the WCC. This will be in line with European standards and the requirements of EU Directive 2024/1226. The third is the Military WCC. This area covers crimes related to the activities of military structures, the defence industry and army supplies. Over time, post-war reconstruction will also open up new areas of work for WCC lawyers. — How do VB Partners adapt to new challenges and opportunities? We focus primarily on international cooperation. The expansion of cross-border cases and the involvement of new jurisdictions require a high level of expertise and flexibility. The second important aspect is that international investigation standards are increasingly influencing local practice, so we are actively adapting our approaches. This applies to both improving the quality of analytics and introducing modern tools for work. The introduction of artificial intelligence is an important part of the transformation of legal processes. We use AI to automate routine tasks, such as analysing large volumes of documents, quickly searching for relevant case law, and drafting legal texts. This allows us to reduce the time spent on standard operations and focus on strategic aspects. The third area is the development of internal business processes and the team. Our approach is to improve our team's skills through continuous training and experience sharing. We actively invest in the professional development of our attorneys, as well as in business processes within the company, implementing modern project management systems. Our goal is to create an environment where each team member has the opportunity to grow both professionally and personally, which ultimately improves the quality of services we provide to our clients.
VB PARTNERS - November 3 2025
Press Releases

TOP Trends in Ukrainian Sanctions Policy

  Systematic designation of individuals and legal entities. In Ukraine, the institution of sanctions was introduced in response to the Russian Federation’s illegal annexation of Crimea and the outbreak of armed conflict in the eastern regions of the country. Taking into account the full-scale invasion of Ukraine by the Russian Federation in 2022, the sanctions policy has become even more stringent. Ukraine remains the leader in the number of sanctions imposed. As of now, 18 940 individuals and legal entities have been designated. Of these, 1 047 individuals and legal entities were sanctioned during the first 6 months of 2025. The growing number of designations reflects Ukraine’s firm commitment to holding perpetrators to account and disrupting activities that threaten its sovereignty and security. Criminalization of Sanctions Violation and/or Circumvention Despite the fact that the institution of sanctions has existed in Ukraine since 2014, there is still no liability for their violation and/or circumvention. Since 2020, Ukraine has taken several steps to criminalize sanctions violations and circumvention, but none have been successful. In January 2025, the President of Ukraine submitted a draft law to Parliament aimed at criminalizing the violation and/or circumvention of sanctions. Key points of the draft law: Definition of notion «circumvention». A broad range of actions that will constitute sanctions circumvention is defined. In effect, any action aimed at removing an asset worth almost 3000 EUR from the scope of sanctions will be considered as circumvention. Introduction of a New Crime: Violation of Sanctions and/or Intentional Circumvention of Sanctions. The punishment ranges from a fine of almost 8 000 EUR to imprisonment for up to 10 years with disqualification from holding certain positions or engaging in specific activities for 10 to 15 years. Additional conditions for liability are (a) the aggregate value of the subject of the violation exceeds almost 3 000 EUR; (b) the violation involves military or dual-use goods (regardless of value). The possibility for a court to liquidate a legal entity if its authorized person commits a violation or circumvention of sanctions. Exception – liquidation does not apply to banks. Jurisdiction of a new crime falls within the competence of the Security Service of Ukraine. The draft law enables the conduct of special pretrial investigations (in absentia) and special court proceedings for a new crime. In June 2025 the draft law passed its first reading. It means that a law will be adopted soon. While the legislative initiative is a step in the right direction, it still requires significant refinement and expert input - some provisions remain vague or overly broad. This may lead to abuses by judicial authorities and law enforcement agencies.
VB PARTNERS - November 3 2025
Press Releases

Top 3 Trends in Ukraine’s Extradition and MLA Practice in 2024

Despite the ongoing full-scale war, Ukraine has remained a proactive participant in international legal cooperation. In 2024, three major trends have emerged in the area of mutual legal assistance (MLA) and extradition, highlighting both institutional resilience and a growing level of foreign engagement. 1.             Increase in Requests for International Legal Cooperation According to the Prosecutor General’s Office, Ukraine sent 581 MLA requests in 2024 - 119 more than in 2023. Of these, 574 sought procedural actions and 7 involved the transfer of criminal proceedings. Extradition requests increased to 224 (compared to 150 the previous year). In some proceedings, Ukrainian prosecutors now send over 20 MLA requests, which indicates growing complexity of investigations and stronger cooperation with foreign counterparts. Notably, the average annual number of MLA requests (since 2021) remains stable at around 480, showing that war has not disrupted Ukraine’s ability to engage internationally. 2.             Return of Extraditions Under Conditions While many EU countries refused extradition to Ukraine in 2022–2023 due to concerns under Article 3 ECHR, 2024 marked a shift. The Ministry of Justice designated 17 detention facilities located far from combat zones. Five of them were equipped with renovated cells for extradited individuals. Nonetheless, Ukrainian Ombudsman reports confirm ongoing issues: unsatisfactory medical care, fire safety violations, and misuse of shelters during air raids. Guarantees provided by Ukraine are now assessed individually by foreign courts. 3.             Expansion of Geography and Instruments Ukraine continues to cooperate actively with the EU, UK, US, and Switzerland, while also increasing its outreach to countries in Latin America and Africa. Additionally, 21 new Joint Investigation Teams (JITs) were established from September 2023 to September 2024, 15 of which with EU states. Today, Ukraine is part of over 30 JITs. These teams are crucial for investigating war crimes and transnational offences.
VB PARTNERS - November 3 2025