Sentence for former Supreme Court Chief Justice Knyazev, Defense Forces transformation project, and announcement of 21 sanctions packages

This week, former Supreme Court Chief Justice Vsevolod Knyazev was sentenced to 5 years in prison in a record-breaking bribery case, the European Commission announced the 21st package of sanctions against the Russian Federation, and President Volodymyr Zelensky reported a project to transform the Defense Forces, under which gradual demobilization is to begin.

Babel has compiled the main events of the week so that you can stay up to date with the news.

Former Supreme Court Chief Justice Knyazev Convicted

On Monday, June 8, the High Anti-Corruption Court (HACC) approved a plea agreement between the investigation and former Supreme Court Chief Justice Vsevolod Knyazev. He was sentenced to 5 years in prison with confiscation of property.

Knyazev was caught in May 2023 receiving a particularly large bribe — $2.7 million. At a closed-door hearing on June 8, he fully admitted his guilt, agreed to testify against his accomplices, and receive a real sentence.

According to Babel, Knyazev agreed to the deal by giving prosecutors the names of Supreme Court judges who had recently been indicted. He also named a number of suspects who are not being made public. According to sources close to Knyazev, he agreed to cooperate because he “did not expect a fair decision in the criminal case”.

21st package of sanctions against Russia

On Tuesday, June 9, European Commission President Ursula von der Leyen presented the 21st package of sanctions against Russia. Among the proposals is a ban on entry into the EU of all Russians who fought against Ukraine. The EU also proposes to add 30 more vessels of the Russian shadow fleet to the sanctions list. For the first time, the list will include vessels that assist the shadow fleet.

Among other suggestions:

• restrictions on the sale of tankers for transporting liquefied natural gas;
• a complete ban on transactions for another 31 Russian banks and another 20 banks, crypto firms or platforms, and oil traders in third countries that assist the Russian Federation;
• new restrictions on the export of alloys and metals to Russia;
• a ban on the import of metals, metal ores or auto parts from the Russian Federation;
• restrictions on the import of fish products from the Russian Federation.

The EC President did not name any Russians who could be subject to European sanctions. The media reported that the EU is discussing the possibility of including the head of the Russian Orthodox Church Patriarch Kirill on the sanctions list — a decision previously blocked by Hungary.

This package still needs to be approved by EU member states.

The Verkhovna Rada approved the "OLX tax"

On Tuesday, June 9, the Verkhovna Rada adopted Bill No. 15111-d on the income of digital platforms and their taxation. It became known as the “OLX tax”.

The law will require digital platforms (including marketplaces, taxi and delivery services) to exchange reports with tax authorities. Its goal is to bring out sellers who do not pay taxes. The authorities expect additional revenue to the budget of about UAH 14 billion annually.

From January 1, 2027, platforms will automatically start charging a single tax at a rate of 10%. It was introduced instead of the current 23%. Taxes will not be charged if the platform has received less than €2 000 in profit per year, the purpose of the law is precisely to tax businesses. Citizens do not need to file declarations or open special accounts. The platform itself acts as a tax agent — it calculates and withholds the tax.

The Tax Service of Ukraine will automatically exchange data on residentsʼ income on digital platforms with other countries annually. Full data exchange will start in 2028 (for the reporting year 2027).

The bill was needed to implement the memorandum with IMF and EU, harmonize Ukrainian legislation with European legislation, and receive new financial tranches. It still needs to be signed by the president.

Transformation of the Defense Forces

On Friday, June 12, President Volodymyr Zelensky presented a draft for the transformation of the Defense Forces. It provides for three new types of contracts, after the completion of each of them — a postponement of at least six months, an increase in salaries for logistics and combat units, a simplified mechanism for returning after AWOL, which will be valid for 100 days after the government adopts a corresponding resolution.

Those who have been in the military the longest and spent the most time on combat duty will begin to be gradually discharged from service by the end of the year.

Two new MPs in the Verkhovna Rada

On Thursday, June 11, and Friday, June 12, two new MPs were sworn in in the Verkhovna Rada. Political scientist Mykola Davydiuk became a member of the “Voice” faction, replacing Volodymyr Tsabal, who resigned. And Andriy Levus, head of the commandantʼs office of the Maidan Self-Defense, deputy head of the Security Service of Ukraine in 2014, and a previous MP from the “Popular Front” entered parliament from the “European Solidarity” faction, replacing the deceased Stepan Kubiv.

Elon Musk is the first trillionaire

On Friday, June 12, calculations by Reuters and Forbes showed that Elon Musk became the worldʼs first dollar trillionaire — his fortune is estimated at $1.1 trillion. Until recently, the entrepreneurʼs fortune was estimated at approximately $780 billion. However, recently his company SpaceX went public — that is, it placed its shares on the stock exchange for the first time.

Muskʼs SpaceX securities are estimated to be worth $866 billion — about 79% of his total wealth.

For more news and in-depth stories from Ukraine, please follow us on X.