Sanctions against Poroshenko: What are the consequences for his business?

The National Security and Defense Council introduced 17 sanctions restrictions against businessman, People’s Deputy and leader of the European Solidarity Party Petro Poroshenko. The politician and businessman called this decision “anti -constitutional” and “politically motivated”. What can be the consequences for Poroshenko’s business empire? Tells the lawyer of business safety practice in juscutum Artem Kozar

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On February 12, 2025, the NSDC imposed sanctions against the fifth President of Ukraine Petro Poroshenko. The irony of the fate is that Law No. 1644-VII, which allowed it, was approved precisely for his cadence. The Security Service of Ukraine explained the decision that the restrictions were imposed because of the threats of state security, territorial integrity and economy of Ukraine.

What are the consequences of Poroshenko’s business and political career?

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Which provide sanctions NSDC has imposed 17 types of restrictions on Poroshenko, including:

Asset blocking – prohibition of managing their own financial resources and property;

Prohibition of trade operations -inability to conclude export-import agreements;

Preventing capital withdrawal – lock of money transfers abroad;

Restricting the use of electronic communications – potential problems with bank accounts and payment systems;

prohibition of privatization of state property – lost opportunity to invest in state assets;

Stopping the fulfillment of economic and financial obligations -the risk of claims from business partners through unfulfilled contracts.

Policy sanctions are extremely rigid. He was blocked by assets, which in fact deprives the opportunity to dispose of finances and property. His business will not be able to conduct trading transactions, carry out export-import agreements, as well as bring capital abroad.

In addition, Poroshenko was deprived of state awards, which, although it does not affect his finances, is a symbolic blow to his political image. And his companies were forbidden to participate in the privatization of state property.

The law requires the definition of sanctions except those that lead to termination of rights or cannot be temporary in nature. At the same time, the NSDC decisions against Poroshenko are listed only for the blocking of assets and deprivation of state awards, which are introduced indefinitely. However, the law allows for indefinite application of sanctions only to deprivation of awards, which puts the question of the legitimacy of indefinite blocking of assets.

The sanctions imposed have an individually defined nature and are applied directly to Petro Poroshenko and companies to which it exerts direct or indirect influence, including the All -Ukrainian Charity Organization “Poroshenko Charitable Fund”. However, the spread or imposition of restrictions on a wider circle of Poroshenko’s environment in the future is not excluded.

Impact on business The consequences of these sanctions can be devastating for Poroshenko’s business empire.

Asset blocking can cause some companies to collapse. In particular, it can have serious consequences for business structures that depend on access to financial resources. However, the blocking of assets is not equal to their recovery of the state income, in particular the transfer to the ARMA, since this type of sanctions is provided by another paragraph of a law that has not been applied to Poroshenko.

His companies may be on the verge of bankruptcy because of the inability to fulfill financial obligations. Particularly vulnerable are enterprises that depend on international trade and logistics.

Stopping financial obligations may cause claims of counterparties, financial penalties, termination of contracts and loss of partners’ trust. There are also possible problems with the payment of loans, which threatens bankruptcy of individual companies.

Businesses with links with Poroshenko’s companies will not be able to enter into export-import agreements, which will significantly reduce their income. For example, Poroshenko’s business may lose important export markets, which will lead to a decrease in production, fall in profits and potential staff reduction.

The complication of the transit of resources and imports of raw materials through a sanction ban can lead to contract disruption, fines from partners and significant economic losses.

Sanctions will also hit the Poroshenko Charitable Foundation, as the blocking of assets and the ban on financial transactions will make it impossible for the organization’s normal activity. Stopping trade agreements and restrictions on electronic communications may be deprived of the international support fund, which will affect its social initiatives.

Sanctions and political future Blocked accounts will make it impossible to finance party projects and media resources, which will weaken his position as an opposition leader.

But the sanctions of the form Poroshenko does not forbid Presidents. The Constitution of Ukraine does not contain provisions that would limit the participation in the elections of persons who have been sanctioned.

However, political consequences can be more noticeable than legal consequences. Restricted access to finances will complicate an election campaign, and a negative information background can affect electoral support. Sanctions can be split by the electorate: some of the supporters will perceive them as political pressure, others – as evidence of serious violations.

Interestingly, at the international level, sanctions against Poroshenko have no confirmation. No country or international organization, including the US, EU and UN, has introduced similar restrictions. This means that they have no legal force outside Ukraine. Instead, the President of the European People’s Party, Manfred Weber, has already criticized Poroshenko’s sanctions.

At the same time, Poroshenko has assets in Panama – a country known for his poor cooperation on financial monitoring. According to the Panaman Documents investigation, in 2014, during his presidency, he created an offshore company to restructure his assets. It then caused a discussion on the possible tax evasion and the ethics of such actions. It can now help him protect some of his wealth, although international pressure on offshore zones is increasing and the situation may change.

In general, sanctions significantly limit Poroshenko’s financial capabilities, undermine his political positions and create risks to his business.

The introduction of sanctions against Poroshenko will also become an important test for the Ukrainian judicial system, as their possible appeal in the Supreme Court can affect the future sanctional policy of the state.

Whether Poroshenko can maintain his influence will depend on his further actions, international reaction and general political context in the country.

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