In 2024, law enforcement officers registered 5139 criminal offenses in the field of economic activity. Only 1,754 cases (34%) were brought to court with an indictment. In January-April 2025, the situation did not change: the figure remained at 33%.
In other words, two-thirds of proceedings against businesses are opened but not brought to court.
To change this practice, a year ago, pursuant to a decision of the National Security and Defense Council, the Office of the Prosecutor General conducted an audit of criminal proceedings against businesses. Following the audit, the standards of prosecutors’ work in the field of investment protection were approved.
One of the key principles of the standards is that a search should be an exceptional investigative action.
Nevertheless, the number of searches has increased over the past year, especially in the agribusiness, oil trading, IT, and miltech sectors.
In this article, we have collected practical recommendations:
- on what grounds law enforcement officers come to search;
- What it can lead to;
- how to prepare the company and minimize risks.
Vyacheslav Kolomiychuk, Doctor of Philosophy in Law, attorney at law, senior associate at Miller Law Firm, has prepared a useful material on this topic.
1. Grounds for the search
A search is an unannounced investigative action that is conducted to collect evidence. What an investigator needs to conduct a search at an enterprise:
- the existence of criminal proceedings;
- justification of why the evidence cannot be obtained voluntarily through discovery or other investigative actions (temporary access);
- description of things, documents, and other property to be found, as well as their connection with the criminal offense;
- the decision of the investigating judge;
As an exception to the rule, investigators may conduct a search without a warrant, but only in urgent cases related to saving lives and property or direct prosecution of persons suspected of committing a criminal offense (part 3 of Article 233 of the CPC of Ukraine).
However, some law enforcement agencies, in particular the SBI, interpret this provision not as an exception but as an opportunity.
Important! If the investigators entered the house without a court order and without urgent grounds, such a search violates human rights and fundamental freedoms. Accordingly, the actual data of the search report and other derivative evidence are inadmissible.
The law also requires the investigator to explain why permission is needed to interfere with property rights in the form of a search.
In other words, a search may not be conducted if evidence can be collected by sending inquiries or conducting a seizure (temporary access).
The grounds for a search must be convincing and reasonable. If they are absent or contrary to the law, the actions of law enforcement officers will have negative consequences.
2. Legal and factual consequences of the search
After a search of a company, several scenarios are possible, the worst of which may be the following:
Facts:
- seizure of equipment, documents, cash, and servers;
- interruption of operating activities;
- breach of obligations to counterparties;
- leakage of confidential or commercial information;
- Deterioration of the company’s image, loss of trust on the part of banks, investors, and partners.
Legal:
- the risk of further charges against the company’s officers and employees;
- summonses for interrogations;
- seizure of the company’s accounts or property;
- initiating new criminal proceedings based on the information found.
A separate risk is that after the search, the manager may be offered a “solution” through intermediaries, which creates additional reputational and legal threats.
That is, the consequences of the search may go far beyond the criminal proceedings and affect the stability of the business. Therefore, this investigative action should be taken seriously and properly prepared.
3. How to prepare for a possible search
The worst thing is to be unprepared. Businesses should have a clear anti-crisis plan and algorithm of actions.
What you should do in advance:
- Conduct a security audit and brief the staff;
- Develop and test an algorithm of actions (“alert instruction”) for employees when they receive information about a search;
- Appoint a responsible person (and his or her deputy) to act during the search;
- Sign a contract with a lawyer and know who you can contact for prompt support;
- Organize video surveillance and data backup;
- Implement a trade secret policy (including GDPR or other personal data requirements);
- Check all contracts with IT providers, cloud services, and accountants: where your data is physically stored, who has access to it, and how to act in case of deletion;
- Simulate a search together with a lawyer: this will help identify weaknesses in preparation and relieve stress on the team
- Separately, agree on a PR strategy in case of a search: who communicates what to partners, the media, banks, and employees.
Searches are a reality of Ukrainian business, answering not the question “if?” but the question “when?”. They are not always legitimate, but they are always risky. The key is to be prepared: legally, procedurally and emotionally. A clear algorithm of actions, support from a lawyer, recording of violations and a strategic approach to protecting the company’s interests are tools that can change the course of events.