VB PARTNERS

Ukraine's sanctions against a former top executive of a French international financial group have been cancelled The Ukrainian court supported the position of VB Partners and cancelled personal sanctions against our Client, a French citizen and former executive of one of the largest international financial groups. In February 2023, the President of Ukraine imposed sanctions on the Client. The reason: the Client's membership in the management body of a Russian bank at the time of the sanctions. The court agreed that the sanctions were imposed in error. The restrictive measures were imposed on the basis of irrelevant and unverified information. The court accepted the evidence that there was no connection between the Client and the aggressor bank. Why is it important? The erroneous application of sanctions in Ukraine is not an isolated case, as sanctions lists are drawn up in the context of the crisis and Russia's full-scale war. There is no effective procedure for lifting sanctions in Ukraine. The President and the initiator of the sanctions, even if they recognise that they are wrong, do not lift them on their own. Court proceedings in such cases last for years, and there are few positive decisions. A proper legal procedure for reviewing sanctions does not weaken the sanctions policy, but, on the contrary, helps to strengthen it, increasing its validity and effectiveness. VB Partners' team is among the few who successfully challenge sanctions. In the 10-year history of the sanctions institution in Ukraine, we have once again succeeded in satisfying a claim for a client.

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.

  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.

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.