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YouControl Is Watching: Information on Sanctions Was Updated

18 September 2020
YouControl Is Watching: Information on Sanctions Was Updated

In mid-May the National Security and Defense Council of Ukraine imposed sanctions on a number of legal entities and natural persons and lifted some of them. YouControl made appropriate changes in the system and found out what the legal entities subject to sanctions were engaged in and in which regions they operated.

 

In mid-May the National Security and Defense Council of Ukraine adopted a decision “On the Application, Abolition and Amendment of Personal Special Economic and Other Restrictive Measures (Sanctions)”. According to this decision, sanctions were imposed on 235 legal entities and 377 natural persons from the Russian Federation and Ukraine. However sanctions against some companies were lifted.

 

YouControl specialists analyzed the list of all entities and persons and made appropriate changes in the system. In particular, they have found links between the natural persons on whom sanctions are currently imposed and the legal entities in which they are founders. In addition, 171 companies and 62 individual entrepreneurs were included in the system of marking involvement in the sanctions list. There is no information about them in the official list of the National Security and Defense Council of Ukraine, but data about them were entered into the YouControl system on the basis of this analysis. Data on the lifting of sanctions were entered into the profiles of 34 companies and persons related to them.

 

It is worth mentioning that for some companies and natural persons the imposed sanctions are a continuation of the previous ones. The period of validity of the new restrictions is from one to three years.

 

Cooperation with a company that is subject to sanctions can cause financial losses and even attract the attention of the law enforcement agencies. First of all, information on the existence of sanctions against counterparties should be of interest to employees of security services, lawyers and heads of companies who check counterparties by themselves.

 

Who Is on the Sanctions Lists?

 

According to the list of the National Security and Defense Council of Ukraine and the analysis of YouControl data, 230 Ukrainian companies are currently subject to sanctions. From this list 195 companies are active, that is, they are not in the process of termination.

 

Most of them are located in Crimea and Donetsk, but 55 are registered outside the occupied territories. The largest number of active companies subject to sanctions are registered in Kyiv, namely 22, 9 in Lviv, and 5 in Kharkiv. Such organizations work also in Donetsk, Dnipropetrovsk, Zhytomyr, Zaporizhzhia, Odesa, Rivne, Sumy, Ternopil, Chernivtsi and Chernihiv regions.

 

 

Areas of their activity are also diverse, but mostly their main KVEDs (classifier of types of economic activity) relate to the field of information and communications. The rest work in trade, science and technology, logistics and post, construction and provide other services.

 

How to Find Information about Sanctions?

 

You will see in the express analysis whether a company is currently subject to sanctions, and in the section “Official notices” you will learn whether it was such before.

 

To see this information in the search, you need to enter a company name or its code according to the Unified State Register of Enterprises and Organizations of Ukraine and open a card. The marking of involvement in the sanctions list is highlighted in red.

 

 

To check the information in the “Official notices”, you need to open the appropriate link in the menu on the left.

 

 

What Are the Risks of Cooperation with Counterparties That Are Subject to Sanctions?

 

Sanctions restrict or prohibit certain types of economic activity. Companies that are subject to sanctions may have:

 

• Blocked assets;

• Limited trade operations;

• Suspended financial and economic obligations;

• Prohibited withdrawal of funds outside Ukraine;

• Fully terminated or partially limited provision of services;

• Prohibited procurement;

• Suspended issuance of licenses, permits for import and export of currency values from Ukraine;

• Limited issuance of cash by payment cards issued by foreign banks;

• Prohibited transfer of technologies, rights to objects intellectual property.

 

Cooperation with enterprises or organizations that are subject to sanctions of the National Security and Defense Council of Ukraine can be risky for your business.

 

“Activity of a company that is subject to sanctions contains certain compliance risks, as indicated by a number of factors related to the restrictions specified by the national law. It should be kept in mind that partnership with a company that is subject to sanctions can cause financial damage, negative reputational consequences and destabilization of business, and, depending on the legal qualifications of such cooperation, it can also attract the attention of the law enforcement agencies,” Danylo Hloba, the Deputy Director of YouControl on Legal Issues, says.

 

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