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Decision of the National Security and Defense Council of Ukraine dated October 8, 2024

Entry into Force

This decision has come into effect in accordance with the Decree of the President of Ukraine No. 698/2024 dated October 8, 2024.

Purpose of the Decision

The decision is aimed at the application of personal special economic and other restrictive measures (sanctions) in accordance with Article 5 of the Law of Ukraine “On Sanctions.”

Main Provisions

1. Support for the Proposals of the SBU:
   The National Security and Defense Council of Ukraine supports the proposals submitted by the Security Service of Ukraine regarding the application of personal special economic and other restrictive measures (sanctions).
2. Application of Sanctions:
   Decisions are made regarding the application of personal special economic and other restrictive measures (sanctions) to two categories of subjects:
   • Individuals according to Appendix 1;
   • Legal entities according to Appendix 2.
3. Implementation and Monitoring:
   The Cabinet of Ministers of Ukraine, in cooperation with the Security Service of Ukraine and the National Bank of Ukraine, is responsible for the implementation and monitoring of the effectiveness of the specified sanctions.
4. International Coordination:
   The Ministry of Foreign Affairs of Ukraine is obliged to inform the relevant authorities of the European Union, the United States of America, and other states about the application of sanctions and to discuss with them the possibility of introducing similar restrictive measures.

Attachments

Appendix 1

Contains a list of individuals to whom personal special economic and other restrictive measures (sanctions) are applied.

Appendix 2

Contains a list of legal entities to whom personal special economic and other restrictive measures (sanctions) are applied.
Secretary of the National Security and Defense Council of Ukraine O. Lytvynenko

Consequences:

Analysis of the Consequences of the Decision to Apply Sanctions

Positive Consequences

The adoption of the decision to apply sanctions may have significant positive consequences for Ukraine, particularly in the areas of national security and international relations. Sanctions serve as an important tool for protecting national interests, enabling the counteraction to threats posed by individuals and legal entities. This can create a powerful signal to the international community, emphasizing the unacceptability of certain actions and prompting other countries to take similar measures, which may strengthen international pressure on the aggressor.
Moreover, the monitoring mechanism established in the decision will provide a systematic approach to the implementation of sanctions, allowing for the identification and rectification of shortcomings in their application, as well as adapting them to changing conditions. This will undoubtedly enhance the effectiveness of responses to existing threats.
The role of international cooperation is also significant, which can be strengthened by informing partners about the sanctions introduced. This elevates Ukraine’s position on the international stage and creates conditions for coordinated actions against international crime and aggression.

Negative Consequences

However, alongside the positives, the adoption of the decision on sanctions may also have negative consequences that require serious attention. First, the introduction of sanctions may reduce the country’s investment attractiveness, as enterprises affected by the restrictions may lose access to financing and technologies, negatively impacting their competitiveness.
Second, the negative impact may extend to companies with business interests in international markets. This could lead to financial losses due to the inability to enter into contracts with partners, which may threaten the bankruptcy of not only the companies themselves but also their counterparties.
Social consequences may manifest in an increase in social tension, especially if the sanctions pertain to individuals who are not guilty of any offenses. This could lead to societal destabilization and an increase in protest sentiments.
Additionally, sanctions may complicate Ukraine’s international relations, as partners may perceive these actions as aggressive, which would hinder diplomatic efforts and could lead to Ukraine’s isolation on the international stage.
Finally, the psychological impact of the imposition of sanctions may evoke feelings of anxiety and instability in society, undermining trust in state institutions.
Thus, while sanctions may be necessary in certain situations, their implementation should be carefully weighed to avoid serious negative consequences.[:]