On 1 April 2022, Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to the Law of Ukraine ‘On the Basic Principles of Forced Expropriation in Ukraine of Property of the Russian Federation and Its Residents’ regarding Clarification of Specific Provisions” (“Amendments“) to extend the scope of the Law of Ukraine “On the Basic Principles of Forced Expropriation in Ukraine of Property of the Russian Federation and Its Residents” adopted back in March 2022 (“Expropriation Law“).  

The Amendments have not yet become effective, but will come into force with the signature of the president of Ukraine and official publication.

Affected property and entities

In addition to categories of persons whose assets were initially targeted by the Expropriation Law, the Amendments will allow expropriation of movable and immovable property, funds, bank deposits, securities, corporate rights and other property (assets) that are located (registered) in Ukraine owned by:

  1. The following individuals:
    • Citizens of the Russian Federation (except for those who defend (defended) the independence, sovereignty and territorial integrity of Ukraine, take (took) direct part in repelling and deterring (neutralizing) the armed aggression of the Russian Federation against Ukraine and ensuring its national security, eliminating the threat to Ukraine’s independence and its territorial integrity during martial law, the state of emergency or armed conflict)
    • Those who are not citizens of the Russian Federation, but have close ties with the Russian Federation, reside in the Russian Federation or whose main activity is concentrated in the Russian Federation
  2. Legal entities (their branches and representative offices) operating and registered in Ukraine, in which the founder (participant, shareholder) or ultimate beneficial owner (directly or indirectly) is an individual specified in para (a), including those who indirectly exercised managerial functions and control over the legal entity before 24 February 2022
  3. Upon the decision of the National Security and Defense Council of Ukraine or a court, individuals or legal entities (irrespective of their nationality, place of registration or main economic activity) residing outside of Ukraine or on the temporarily occupied territory of Ukraine that publicly deny or support the Russian Federation’s military aggression against Ukraine, the temporary occupation of part of Ukraine, and have not suspended or terminated their economic (business) activities in the Russian Federation during the martial law regime in Ukraine


The list of property subject to expropriation will be prepared by the Cabinet of Ministers of Ukraine with the final decision on expropriation taken by the National Security and Defense Council of Ukraine (NSDC). The NSDC decision must then be enacted by a decree of the President of Ukraine. The Expropriation Law requires the presidential decree to be ratified by the Verkhovna Rada of Ukraine within six months following the repeal or end of martial law in Ukraine.

Once the presidential decree comes into force, the property should be transferred under the management of a specialized Ukrainian state-owned enterprise established by the Cabinet of Ministers of Ukraine without compensation.


Hanna Shtepa is a Counsel heading the International Commercial & Trade (ICT) practice in the Kyiv office of Baker McKenzie. The practice is ranked Tier 1 by Legal 500 EMEA. She specializes in international trade restrictions, economic sanctions and export controls compliance, structuring international supplies of goods and services, anti-dumping investigations, public procurement regulations, trade and general compliance, legal regime and restrictions related to temporary occupied territories and business operations during the military state. She also has extensive experience in project finance, focusing on renewable and conventional energy, financial restructuring, sovereign and municipal finance, nuclear liability. Hanna is ranked as Next Generation Partner for International Trade and Energy and recommended as a Rising Star in Banking, Finance and Capital Markets by Legal 500 EMEA 2020-2022. Ms. Shtepa holds her LL.M. in International Commercial Arbitration Law from the Stockholm University, Stockholm, Sweden.