Ukraine decriminalized the crimes in the sphere of economic activity

19.12.2011

17 December 2011 the Law № 4025-VI "On Amendments to Certain Legislative Acts of Ukraine concerning the humanization of responsibility for violations in the sphere of economic activity" ("Voice of Ukraine", No. 239) was published in Ukraine. Let’s recall that the law was initiated by the President of Ukraine Viktor Yanukovych and was adopted by the Verkhovna Rada on 15 November 2011. The changes primarily affected the decriminalization of certain offenses. From the Criminal Code of Ukraine some compounds related to economic activity were excluded - now for such offenses administrative responsibility is provided, accordingly Administrative Code of Ukraine was amended. Among new articles of Administrative Code of Ukraine the following should be mentioned: art. 1351 - "Forgery of tickets and postage stamps", art. 1621 -  "Avoiding the return of proceeds in foreign currency", art. 1622 – "Illegal open, or use outside of Ukraine of foreign currency accounts", art.1623 – "Violation of the rules of putting precious metals and stones", art.16415 – "Concealment of a sound financial insolvency", art.16416 – "Taking prohibited economic activities", art. 16614 – "Failure to meet the mandatory conditions for privatization of public enterprises or public property and their future use by a person", art.16615 – "The illegal actions concerning privatization papers", art.16616 – "Illegal actions in bankruptcy", art.16617 – "Fictitious bankruptcy", art.16618 – "Compulsion to anticompetitive concerted actions", art.1712 – "Falsification of measurement means" and art.1893 – "Illegal manufacture, sale or use public hallmarks."

Like Russia, Ukraine, followes the path of humanization of responsibility for crimes in the sphere of economic activity. However, if Russia just mitigates punishment, keeping the criminal liability, Ukraine went on – the criminal liability is replaced by the administrative one, the principal sanction of which is an administrative penalty. The law will come into force by February 18 2012. Most likely, these steps were taken to establish compliance with European standards, to increase the chances for EU accession.

Expert’s opinion

“After the first reading of amendments the impression was that legislators "monetized" the prison terms. That is "price tag" on release and the rules of "pricing" - is now clear and transparent. Details - to the cost of one day of imprisonment! Well – we’ll look forward to the next replenishment, pockets of corrupt officials and the accounts of lawyers who will be able to requalify the criminal article into administrative one. The changes were in the Police Act, the Customs Code, the Criminal Code, the Code of Administrative Offences - totally seven directly changed legislative acts. 16 offenses were decriminalized – punishment now is penalty.

Actually penalties are one of the most exciting moments of these changes. On the one hand, they are enlarged and strongly tied to non-taxable minimum. Many cases that are now in procedure, will have to be closed - because it is not criminal article, but administrative one. Potentially some people will be released from prisons. On the other hand, the case is not closed completely. And the responsibility for the crimes committed will be "paid to the Motherland" in cash and property. The persons will be released from prison after paying a fine. In addition, those who are unable to pay the fine within the prescribed period (1 year) will be applicable to a penalty of community service or correctional work - depending on the severity of the offense and the penalty.

Conduct your business honestly! Let the best lawyers make your work clear!”

On the basis: www.golos.com.ua

Lomakin Yaroslav ( the managing partner of consulting Honest&Bright)