Ukraine’s Wartime Sanctions: In Search of Balance

Ukraine has responded to Russia’s full-scale invasion not only with traditional sanctions but also with an extraordinary legal measure: the sanction of asset recovery to the state. This sanction allows the courts to recover assets for the benefit of the state from persons deemed to support the aggressor state through a non-criminal and court-ordered procedure. Its significance lies in its transformative potential for sanctions regimes globally, showing how states may recalibrate their traditional sanctions frameworks to respond to unprecedented security threats, while managing the tension between individual rights, including principles of legal certainty and proportionality.

This article explores the legal nature of asset recovery to the state and how it was integrated into Ukraine’s sanctions regime. It also examines the evolving court practice that has emerged in response to its application and the practical challenges arising from its effect on non-sanctioned persons. The article begins by outlining the national legal framework and key features of this measure, before turning to standards of judicial review and burden of proof that distinguish court proceedings on asset recovery to the state from procedures applicable to other sanctions. Finally, the article addresses the protection of non-sanctioned asset holders, an area requiring urgent legal development to prevent disproportionate interference with property rights. Together, these issues highlight the need for a clear and principled approach to ensure the legitimacy and effectiveness of asset recovery to the state as a wartime sanction.

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