Important Changes in Sanctions Regulations

2025 Sanctions Reform: How Will It Affect Businesses?

The Saeima has approved amendments to the Criminal Law in the first reading, introducing partial decriminalization of sanctions violations while simultaneously increasing the maximum imprisonment terms for more severe offenses. Moving forward, minor violations of European Union sanctions will be classified as administrative rather than criminal offenses.

BDO Law’s experience indicates that many entrepreneurs underestimate the serious consequences of sanctions violations. Currently, approximately 400 criminal cases have been initiated for such offenses, particularly in the import and export of goods, often involving amounts below €10,000.

Decriminalization could reduce the number of criminal cases and speed up case processing. However, businesses must remain vigilant, as even in cases of administrative violations, revenues or goods obtained may be confiscated, and fines of up to €20,000 may be imposed. For more serious offenses, the maximum imprisonment terms have been significantly increased.

To mitigate legal and financial risks, businesses are advised to implement effective internal control systems to ensure compliance with sanction regulations.

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