Ukraine Imposes New Sanctions on 95 Individuals and 70 Entities Linked to Russia's Military-Industrial Complex


KYIV — Ukrainian President Volodymyr Zelenskyy signed a decree on January 3, 2026, enacting a decision by the National Security and Defense Council (NSDC) to impose sanctions on 95 individuals and 70 legal entities, primarily Russian citizens and companies accused of supporting Russia's military industry amid the ongoing war.

The decree, published on the official presidential website, targets entities involved in servicing Russia's state defense orders and contributing to its military-industrial complex. A statement from the President's Office emphasized that the measures aim to disrupt the production and supply chains for weapons and equipment used in Russia's aggression against Ukraine.

"These are individuals and companies linked to servicing Russia’s state defense order and to the activities of its military-industrial complex," the statement read. It specified that the sanctioned parties include enterprises and executives producing and supplying communications systems, electronic warfare equipment, and microelectronics for Russia's defense sector and security agencies.

The sanctions also extend to industrial enterprises in Russia's chemical, extractive, metallurgical, and fuel and energy sectors, which indirectly support military capabilities. Most of the targeted individuals are Russian citizens or residents, though some reports indicate involvement of entities registered in third countries, including China and the British Virgin Islands.

The restrictions include standard measures such as asset freezes, trade bans, prohibitions on capital withdrawal from Ukraine, and suspension of economic and financial obligations. The Cabinet of Ministers, Security Service of Ukraine (SBU), National Bank of Ukraine, and other agencies are tasked with implementation and monitoring.

Ukraine's President's Office highlighted ongoing coordination with international partners to align sanctions regimes. "Ukraine will continue working with its partners to synchronize its sanctions within partner jurisdictions," the statement noted, adding that "some of these listings will be reflected in the 20th sanctions package of the European Union, which is currently being prepared."

This move comes as the European Union prepares its 20th package of sanctions against Russia, expected in early 2026—potentially timed around the fourth anniversary of the full-scale invasion on February 24. EU leaders, in December 2025 conclusions, called for continued pressure on Russia, with the new package anticipated to target evasion mechanisms, financial sectors, and further restrictions on energy revenues.

The Ukrainian sanctions build on recent efforts to counter Russia's ability to circumvent Western restrictions. In late 2025, Ukraine synchronized multiple packages with allies, including measures against Russia's "shadow fleet" of oil tankers and suppliers of drone components. This latest package specifically focuses on disrupting technological and logistical support for Russia's defense production, where foreign-sourced microelectronics and components remain critical despite export controls.

Analysts view the timing as strategic, providing a legal and evidentiary basis for allies to incorporate similar designations. By blacklisting suppliers of electronic warfare and communications gear, Ukraine aims to complicate Russia's battlefield advantages in areas like drone operations and signal jamming.

The decree entered into force immediately upon publication. No immediate response from the Russian Foreign Ministry was reported, though Moscow typically dismisses Ukrainian sanctions as ineffective.

This action underscores Kyiv's proactive role in the global sanctions effort as the war enters its fifth year. With Western allies facing domestic political shifts—including the new U.S. administration under President Donald Trump—Ukraine has intensified unilateral and coordinated measures to maintain economic pressure on Russia.

Russia's economy, while resilient in 2025 due to high military spending and rerouted trade, faces growing challenges in 2026, including projected slowdowns in defense sector growth and tighter budget constraints from falling energy revenues.

Ukraine continues to advocate for stronger multilateral sanctions, particularly on remaining loopholes in technology transfers and third-country intermediaries.
 

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