Foreign citizens and international companies operating in Ukraine increasingly face criminal investigations related to tax, economic, and anti-corruption matters.

Since 2022, the powers of Ukrainian investigative authorities – including the Economic Security Bureau of Ukraine (ESBU), the National Anti-Corruption Bureau (NABU), the State Bureau of Investigation (SBI), and the Prosecutor’s Office – have significantly expanded. This has led to growing risks for non-residents: unjustified searches, asset seizures, lengthy investigations, reputational damage, and even extradition requests.

To minimize exposure, foreign businesses should:

The article provides practical guidance on risk management, legal defense mechanisms, and coordination with foreign counsel to help international companies protect their assets, operations, and reputation in Ukraine.

From Expanded Powers to Multi-Agency Probes: The New Reality Since 2022

Since 2022, Ukrainian investigative authorities have received significantly expanded powers, supported by the creation of new enforcement bodies to ease the workload of the police. While reforms have shown effectiveness in certain areas – for example, corruption cases handled by NABU or high-profile investigations led by SBI – they have also generated new challenges for businesses.

It is now common for several agencies to launch parallel proceedings against the same company or individual based on identical circumstances. Initially, companies with Russian shareholders were the primary focus, but by 2024 the trend had widened to include foreign corporations and executives involved in tax, economic, or anti-corruption investigations.

In practice, the wartime demand for “quick money” to support the state budget has fueled a steady rise in criminal cases against businesses, despite official moratoria on inspections. As a result, foreign companies must be prepared to navigate overlapping investigations, heightened scrutiny, and increasing pressure from multiple authorities at once.

Key Enforcement Authorities

Economic Security Bureau of Ukraine (ESBU)

In the context of non-residents of Ukraine, the following issues are common:

Recommended actions:

NABU and Anti-Corruption Investigations Involving Foreign Businesses

NABU is actively investigating corruption-related offenses, including those involving foreign investments and international contracts.

Foreign companies may find themselves under scrutiny even if not directly involved in corruption schemes. A seemingly ordinary supply contract – particularly for military goods or items destined for the Ministry of Defense of Ukraine – may attract close attention.

Such transactions are closely monitored by NABU, and any violation of the supplier selection procedure immediately gives rise to doubts and the possibility that there was a conspiracy to select a particular supplier, especially if the supplier does not produce the goods itself but delivers them to Ukraine through foreign companies. In other words, the foreign company in such a chain is seen as an intermediary through which the value of the goods is deliberately increased for further legalization of funds obtained, in NABU’s opinion, by criminal means.

Key risks include:

Risk management measures:

Case Snapshot

A foreign company supplying equipment to a Ukrainian state-owned enterprise was accused by NABU of overpricing the equipment.

Ilyashev & Partners’ team arranged an independent international valuation of the equipment; demonstrated that the prices were in line with market levels, taking into account customs and logistics costs; and engaged the embassy of the investor’s home country, which expressed diplomatic support for the company.

NABU closed the criminal proceedings due to the absence of elements of a crime, and the investor’s business reputation was restored.

SBI and Police Investigations: Searches, Detentions, and Business Impact

The State Bureau of Investigation and the police have broad powers to investigate various criminal offenses, including economic crimes, financial misconduct.

Common issues include:

Recommended actions:

Case Snapshot

An EU citizen was detained in Ukraine on suspicion of fraud in connection with an investment agreement. The police conducted an urgent search of his hotel room without a court warrant, seized personal funds and documents, and denied him access to legal counsel.

Ilyashev & Partners’ Criminal Law team filed a motion to initiate criminal proceedings against the police investigators for unlawful actions, challenged the illegal search in court, contacted the embassy of the client’s home country (which issued a diplomatic note to the Ministry of Foreign Affairs of Ukraine), and filed an application with the European Court of Human Rights regarding violations of Articles 3 and 5 of the European Convention on Human Rights.

The client’s rights were defended at both national and international levels, ensuring proper legal safeguards and diplomatic oversight.

Prosecutor’s Office Oversight and Risks for Foreign Companies

The Prosecutor’s Office in Ukraine plays an important role in overseeing the legality of law enforcement actions. However, foreign companies frequently become targets of excessive attention from prosecutors, especially in the case of financial or tax-related offenses.

The risks include:

Recommended actions:

Case Snapshot

The local prosecutor’s office froze the bank accounts of a foreign company, effectively blocking the operations of its Ukrainian representative office.

Ilyashev & Partners’ Criminal Law team successfully challenged the account freeze in court, secured the initiation of criminal proceedings against the unlawful actions of the prosecution, and filed a complaint with the Office of the Prosecutor General regarding the abuse of authority by the local prosecutor’s office. The foreign investor resumed its business operations in Ukraine and obtained compensation for damages through a civil claim.

Legal Rights of Foreign Clients and Available Defense Mechanisms

In general, foreign citizens in Ukraine enjoy the same rights as Ukrainians. At the same time, the investigative authorities are still a bit more cautious with respect to foreigners. This can be explained by image risks and the ability of embassies to take an active position in case of gross violations of the rights of citizens of a particular country.

In general, any person who is of interest to the investigation in a particular case enjoys the rights of a witness until the person acquires the status of a suspect.

The status of a witness, his or her rights, duties, and responsibilities are defined by the Criminal Procedure Code of Ukraine, namely (Articles 65, 66, and 67). Thus, a witness is an individual who knows or may know the circumstances to be proved in criminal proceedings and is summoned to testify.

If the witness is a foreign citizen, he or she enjoys the same rights as Ukrainian citizens and has the right to engage a lawyer from any country, to prevent violations of the Vienna Convention (consular access).

The witness is obliged to:

A witness is liable for knowingly providing false testimony to an investigator, prosecutor, investigating judge, or court or for refusing to testify to an investigator, prosecutor, investigating judge, or court, except as provided for in this Code; the witness shall be criminally liable. At the same time, the right of a witness not to testify that may be used against him or her or his or her relatives is guaranteed by Article 18 of the CPC of Ukraine and Article 63 of the Constitution of Ukraine.

Safeguarding Rights in Ukrainian Criminal Proceedings

Repeated summonses for questioning may sometimes be used as a form of pressure on businesses or individuals. Such actions may be challenged before the investigator’s superiors or in court.

All participants in criminal proceedings have the right to appeal to the court against unlawful actions or omissions of investigators and prosecutors, to file motions requesting investigative actions necessary to establish the truth in the case, and to seek termination of proceedings due to lack of legal basis.

Possible remedies include:

Searches, Asset Seizures, and Pre-Trial Restrictions in Ukraine

Among the methods of pressure employed by authorities, a search deserves special attention, as it may be conducted not only to gather evidence but also to pressure individuals into cooperation or to facilitate corrupt motives.

Under general rules, a search requires a warrant issued by an investigating judge. However, in practice, the use of so-called “urgent searches” conducted without a judge’s order has significantly increased in recent years. Once initiated, it is exceedingly difficult to halt a search, even if it is conducted without proper authorization.

Actions to Take in Case of a Search

Investigators are not entitled to conduct a search if the warrant:

If you detect any of these defects, immediately point them out to the investigator. Should the search nevertheless proceed, demand that your objections be recorded on video. If this does not stop the attempt, call the police and insist that no search can begin until both the police and your lawyer are present.

Exception – warrantless searches: in urgent cases, investigators may conduct a search without a court order. The same basic rules apply, except that there is no warrant to review. In such situations, comply with lawful demands to enter, but – if safety permits –delay access until your lawyer arrives.

Protecting Business Assets and Property in Criminal Proceedings

Any property may be seized and subjected to arrest in criminal proceedings – from mobile phones and bank accounts to buildings and vessels.

In practice, the only effective way to secure the return of property or lift an arrest is to file motions and complaints with the court. Investigative authorities actively use seizure and arrest as pressure tools against both businesses and individuals.

Recovering such property is among the most complex aspects of criminal procedure and requires a sustained, systematic approach.

Case Snapshot

The Criminal Law Practice of Ilyashev & Partners routinely handles such matters and has successfully secured both the return of seized property and the lifting of arrests on various assets.

The Ilyashev & Partners team obtained the release of a foreign vessel from arrest imposed under the petition of the Odesa Regional Prosecutor’s Office in the interests of the State, represented by the State Environmental Inspectorate of the South-Western District (Mykolaiv and Odesa regions), in a case concerning pollution of Ukraine’s internal sea waters arising from an incident during cargo operations at Pivdennyi Port.

The team proved in court that the pre-trial investigation authority breached reasonable time limits, conducted an ineffective investigation, and excessively interfered with the shipowner’s property rights. Thanks to Ilyashev & Partners’ team, the vessel with 20 crew members onboard was able to leave the port.

Pre-Trial Detention of Foreign Citizens

Unfortunately, it is not uncommon for foreign citizens to be placed in a pre-trial detention center by a court order, meaning that a preventive measure in the form of detention has been imposed.

Such a measure is exceptional and applies only to suspects, i.e. persons against whom sufficient evidence has been collected to reasonably assert that they have committed a crime.

As a rule, the detention of foreign citizens does not occur unexpectedly; first, the person is summoned for questioning and other measures are taken to collect evidence. It is at this stage that you should provide the investigator with information and documents as much as possible, and legally influence his or her perception of a particular situation so that he or she does not come to erroneous conclusions.

In addition, you should contact qualified lawyers who will analyze the situation at an early stage and determine the degree of risk of changing from witness to suspect status. It is at this stage that you should provide the investigator with as much information and documentation as possible and lawfully influence his or her perception of the situation to prevent erroneous conclusions.

Reputation Risks and Media Exposure in Criminal Cases

In their pursuit of performance indicators, investigative authorities frequently publicize so-called “high-profile” criminal proceedings, primarily to create the image of effective anti-corruption efforts.

For these purposes, they actively use their resources, official websites and Telegram channels. At the same time, when publishing such information, the investigators often disregard the reputational risks faced by foreign companies or individuals.

Reputational risks and negative consequences can also be caused by all court decisions published in the official register. The point is not in the publication in the register of court decisions itself, which is legal, but the language used by the investigators-terminology that courts often copy verbatim into their rulings. For example:

“The pre-trial investigation has established that the head of Company A, by prior agreement with the head of Company B and other persons, intentionally evaded taxes, which led to the actual non-receipt of funds to the budget in particularly large amounts”.

However, in fact, there is not a single piece of proven evidence that would even preliminarily confirm this version of the investigation, but rather a banal version that has yet to be verified by investigative actions. Unfortunately, such irresponsible wording is commonly in Ukraine.

Thus, if the investigating authorities publish unreliable news on their website or Telegram channel, it is possible to file a complaint with senior management or initiate a defamation lawsuit to protect business reputation.

The situation is more complicated with a court decision that contains wording that has not yet been substantiated by evidence.

Transnational Investigations and Extradition Risks

Ukrainian investigative authorities, in particular NABU, are increasingly engaged in cross-border cooperation with their foreign counterparts. These so-called transnational investigations target offenses that extend beyond Ukraine’s borders, including corruption, economic crimes, money laundering, and other international matters. Such cooperation is usually based on bilateral treaties or global instruments like the UN Convention against Transnational Organized Crime, which regulate evidence exchange and joint investigative actions.

For foreign citizens and companies, this may mean facing requests for questioning, searches, or extradition-related measures initiated at the request of another state. An extradition arrest, for example, involves temporary detention in Ukraine pending a court’s review of a foreign country’s request.

In these cases, it is vital to understand that foreign citizens enjoy the same procedural rights in Ukraine as nationals, including access to legal counsel of their choice and consular support. At the same time, risks may also arise abroad – for instance, when local authorities initiate an international search via Interpol.

Exit Strategies and Settlement Options for Foreign Companies

Foreign citizens and companies operating in Ukraine should take a proactive approach if they receive any indication of potential involvement in criminal proceedings. Early preparation allows businesses to control the narrative and minimize unnecessary complications.

The most effective step is to develop a clear legal position and collect supporting evidence – such as audit reports, expert opinions, and contracts – to confirm the lawful nature of business operations. These materials can be submitted to investigators or courts to expedite the closure of unfounded proceedings.

Ukraine’s legal system also provides structured remedies: from filing complaints against procedural violations to applying for closure of cases where elements of a crime are absent. Preventive measures, where applied, range from lighter commitments to more formal restrictions, but in each case experienced counsel can help secure the most favorable outcome.

While interactions with authorities such as ESBU, NABU, SBI, police, and prosecutors can be complex, they are manageable with the right strategy. A combination of transparent business practices, timely legal responses, and active engagement with qualified local counsel ensures that foreign companies can confidently continue operations in Ukraine while effectively protecting their rights and reputation.

Executive Summary: Key Takeaways for International Counsel

Ukraine remains an important and attractive market for foreign investors, and the right legal strategy allows companies to operate here securely and confidently.

Ilyashev & Partners is a top-tier Ukrainian law firm with a strong focus on criminal law, white-collar defense, and corporate investigations. We represent foreign companies, executives, and multinational corporations in high-profile criminal proceedings involving tax fraud, economic crimes, anti-corruption investigations, compliance violations, and cross-border disputes. Our lawyers provide comprehensive defense in cases of unlawful searches, asset seizures, detention, extradition proceedings, and reputational risks, combining deep knowledge of Ukrainian criminal procedure with international standards of due process. With extensive experience in multi-agency investigations (ESBU, NABU, SBI, Prosecutor’s Office) and proven cooperation with international counsel and compliance teams, we deliver strategic, preventive, and litigation defense that protects both business continuity and personal liability of our clients in Ukraine and abroad.

To learn more, please visit the Ilyashev & Partners Law Firm website or contact Volodymyr Adonin directly.