PIN-UP Global has issued a strong condemnation of what it describes as unfair sanctions imposed on its Ukrainian subsidiary, PIN-UP Ukraine (UKR Game Technology LLC). This follows accusations by the Ukrainian State Bureau of Investigation (SBI) of alleged financial ties to Russia, with the company asserting its innocence and highlighting broader concerns about Ukraine’s business climate amidst ongoing legal proceedings.

The international tech group is currently laying out its defence in the wake of continued allegations from the SBI. In February, the SBI brought charges of misconduct and high treason against PIN-UP Ukraine CEO Ihor Zotko. These allegations led to the freezing of PIN-UP’s Ukrainian assets and the suspension of its operations.

PIN-UP Global Denounces Unfounded Accusations

PIN-UP Global stated, as reported by iGaming Times, that the sanctions imposed by Ukrainian authorities, following what it describes as “unsubstantiated accusations” against its partner in Ukraine and the launch of court proceedings, were “unfortunately” to be expected. The company criticised, as reported by iGaming Times, the increasing use of Ukraine’s sanctions system as a tool to apply pressure on businesses, stating that “Regrettably, in recent years, the sanctions mechanism in Ukraine has increasingly been used as a tool to apply pressure on businesses, and this extends beyond the gambling sector.”

Marina Ilina, CEO of PIN-UP Global, has labelled the SBI’s investigation as “absurd” and “dangerous.” She warned, as reported by iGaming Times, that the case could establish a precedent in which routine commercial payments-such as royalty fees between software firms-are reclassified as national security threats. Ilina also asserted, as reported by iGaming Times, that “These accusations do not stand up to criticism,” affirming her support for Ukraine and stating that all her company’s activities are transparent and easily verifiable.

Allegations of Financial Ties to Russia

PIN-UP Global maintains that the disputed payments were part of a legitimate software licensing agreement between its European entity, GuruFlow Team LTD, and the Ukrainian firm. The company strongly denies any Russian links and asserts that no financial transfers were made to Russian entities. PIN-UP Global has previously underlined that the SBI has never been able to provide evidence or an explanation as to why it launched an investigation of its Ukrainian subsidiaries. The company has signalled its intent, as reported by iGaming Times, to use the legal process as a public test of Ukraine’s institutional integrity, stating, “We intend to show the European market, through our case, how Ukrainian law actually works-whether it truly protects businesses from raiding or facilitates it.”

Broader Critique of Ukraine’s Sanctions System

Despite operating under heightened scrutiny, PIN-UP Global has expanded significantly since the start of the war, increasing its global workforce by 350% to 4,000 staff across seven offices. Leadership views the current proceedings not only as a defence of its own reputation but also as a warning to others about the SBI potentially damaging the reputation of Ukraine’s broader business and technology sectors. PIN-UP Global stated, as reported by iGaming Times, that such practices “only undermine trust in Ukraine, its regulatory institutions, and the officials who, on the one hand, encourage investment in a country that urgently needs it to withstand military aggression, and on the other, block companies that are tax leaders and impose sanctions against them.”

Context of Ukraine’s Gambling Reforms and SBI’s Actions

Against the backdrop of war, the Ukraine government has implemented reforms to tighten oversight of its gambling sector. In March, the government established PlayCity as the new supervisory authority, with the Rada and Cabinet of Ministers pushing forward amendments to the 2020 Gambling Law. These changes aim to centralise control over gambling transactions and customer engagement, signalling a broader shift towards stricter state regulation.

The issues with the previous regulator, KRAIL, included its struggle to operate effectively during the war due to its collegial structure and criticism for allegedly weak regulatory enforcement, tax uncertainties, and the widespread presence of illegal gambling operators, some with ties to Russia. In a notable development, the State Bureau of Investigation (SBI) announced in December 2024 that it had detained KRAIL’s former director, Ivan Rudyi, for allegedly supporting the operations of a Russian-owned online casino and on narcotics charges; he has been denied bail.

In conclusion, PIN-UP Global’s strong denouncement of sanctions and SBI accusations highlights a significant legal battle that challenges not only the company’s reputation but also raises questions about Ukraine’s broader business climate and the implementation of its regulatory reforms, particularly concerning foreign investment and the fight against alleged Russian financial ties in the gambling sector. Awaiting new resolutions, PIN-UP Global concluded its statement, as reported by iGaming Times, that “We will not allow the reputation of a brand with over nine years of history as a trusted and transparent partner to be discredited.”