Confiscation of the aggressor's assets: what was confiscated and when

Confiscation of the aggressor's assets: what was confiscated and when

The property of the occupiers worth almost 1 billion hryvnias is already acting against russia

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Confiscation of the aggressor's assets: what was confiscated and when

At the beginning of April, with 305 votes Verkhovna Rada of Ukraine (the Supreme Council of Ukraine) adopted a bill, that was clarifying the procedure for nationalizing the property of the aggressor country in Ukraine, “On the basic principles of forcible confiscation in Ukraine of property rights of the Russian Federation and its residents with clarifications of a few provisions.” It was sent to get a signature from the president.

Despite the fact that the bill was formally initiated by five people's deputies led by Dmytro Natalukha, it is fully in line with the national paradigm and is not a private parliamentary initiative, but a program document.

Whose property is being confiscated? The juridical grounding for the forcible confiscation of assets belonging to individuals and legal entities – residents of the russian federation – to the budget for the future reparations.

The list of residents includes not only citizens of the russian federation, but also persons indirectly connected with the russian state, even if they don't have a russian passport. “Close connection” is interpreted as permanent residence, work or business in russia, which hasn't been terminated since February 24, 2022. An exception may be those russians who are fighting in the Armed Forces of Ukraine.

In the case of legal entities, the reason for confiscation of assets may be the founder/participant/shareholder or beneficiary, connected with the aggressor country.

Regarding a business, which is operating in Ukraine, the aggressor state may not have a share in the authorized capital or be a participant in the second level, i.e. co-owner of legal entities, which in turn are direct or indirect participants or beneficiaries of the Ukrainian company.

According to the decision of the court and/or the National Security and Defense Council, such residents may be equated with individuals and legal entities who support or deny russia's military aggression and those who continue working in russia. Thus, the possibility of avoiding nationalization through intermediary structures is completely eliminated or largely reduced.

How will it help? The formulation about reparations on the background of enormous damage caused by russians to Ukrainian citizens and the state, almost guaranteed to exclude the possibility for russians to appeal the decision on confiscation in court.

Another one bonus of the document is that foreign business, if it expects to continue operating in Ukraine, receives another incentive to leave the market of the aggressor country.

How to “pick up the “russian trail””? Some discussions are being provoked by the rule on the role of the National Security and Defense Council during nationalization, because, as an advisory body, the Council cannot have independent powers. Most likely, in order to eliminate this collision, the sanctions of the National Security and Defense Council will be supported by court decisions.

It should be noted that the process of identifying russian property in Ukraine started in the first days of the war, which didn't leave time to clarify certain provisions of the bill. This work is carried out most systematically and effectively by the State Bureau of Investigation. Probably due to the fact that the department, according to its powers, was prepared from the very beginning, in particular, to search for collaborators and detect treason.

Work on identifying russian assets in Ukraine and redirecting them to supporting the Ukrainian Armed Forces, the State Bureau of Investigation has begun on its own initiative in the first decade of March.

Are there any results? Since the beginning of the war, more than a billion hryvnias of such property has been confiscated and used for the benefit of the Ukrainian defence and the economy.

“Among other things, the State Bureau of Investigation officers, within the limits of their powers, are establishing the presence of property belonging to the occupying country in Ukraine and informing the civil-military administrations and the commanders of military units about its location,” the office reported in a statement issued on March 8.

Mind studied the dynamics of this activity and its results.

Date (period)

Identified asset

Circumstance

24.02-8.03

Large consignments of food and medicines, petroleum products, spare parts for motorvehicles, more than 65,000 pairs of shoes, ammunition for small arms, other property and military equipment

Confiscated at the border at checkpoints, redirected pledges of individuals, who are citizens of the russian federation

08.03

24 cargo vehicles with cargo for the needs of state defense (including spare parts for cars, construction materials, food, electronic equipment)

Confiscated at the western border checkpoints

10.03

Over $800,000 and an ancient icon

Confiscated by the State Bureau of Investigation officers together with Vinnytsia customs officers at the Mohyliv-Podilskyi-Otach checkpoint from a russian citizen who was secretly trying to take valuables out of Ukraine

24.03

34 million hryvnias were converted into IGLBs of the Military Bonds of Ukraine

In one of the proceedings on official negligence of the State Tax Service of Ukraine, the court arrested 34 million hryvnias of a private company. At the petition of the owner regarding money, the investigating judge lifted the arrest for the purchase of 34,100 military bonds totaling 34.1 million

26.03

276,000 kg of agricultural fertilizers with a total value of over $151,000

The State Bureau of Investigation officers, with the assistance of customs officers, stopped a train from russia to Transnistria at the Mohyliv-Podilskyi checkpoint. In particular, it delivered agricultural fertilizers, namely ammonium sulfate. The substances will go to the needs of enterprises of the National Academy of Agrarian Sciences of Ukraine

30.03

27 trucks from russia and belarus

The trucks were located in the Chernivtsi region and transported non-food items to EU countries. The State Bureau of Investigation officers found them and moved them to the customs control zone of Chernivtsi customs. The property of the aggressor was nationalized and transferred to the needs of the Armed Forces. Cargo belonging to partner countries was transferred to destination

01.04

176 railway cars and tanks, amounting to UAH 264 million

During operative measures, the State Bureau of Investigation officers found cars and tanks owned by businessmen from belarus and russia in Ivano-Frankivsk region. The State Bureau of Investigation of Lviv appealed to the head of the civil-military administrations of Lviv region with the initiative to forcibly confiscate and transfer products for the needs of the Armed Forces

02.04

Metal blanks and products worth over UAH 93 million.

During operative measures, the State Bureau of Investigation officers found and confiscated property of russian entrepreneurs which was being transited through Ukraine on the territory of the Sea Commercial Port of the Odesa region.

03.04

1400 railway cars

Employees of the Bureau found almost 1,500 cars in Poltava and Dnipropetrovsk regions. The owners of the cars are individuals and legal entities of the russian federation and the republic of belarus

05.04

650,000 euros, which were planned to be misappropriated by artificially reducing the amount of compensation for the loss of a fishing trawler in Mauritanian territorial waters in July 2019, which was owned by Ukraine

Employees of the Bureau found that officials of the state-owned enterprise, which is part of the State Fisheries Agency, conspired with representatives of foreign companies, including russian ones. They recorded the groundless transfer of 650.2 thousand euros to a transit account from a bank account opened in russia for allegedly settling a dispute over a flooded trawler, although this decision was not approved by the Ukrainian side. These funds were confiscated and transferred to the Armed Forces by a court decision

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