EU drops sanctions on Yanukovich's Ukraine security chief

By Alastair Macdonald BRUSSELS (Reuters) - The European Union has dropped sanctions imposed last year on the head of ousted Ukrainian President Viktor Yanukovich's security service, according to a legal notice published on Friday. Oleksandr Yakimenko, who ran Ukraine's SBU security service until the bloody street protests that forced Yanukovich from power, was one of four people whose assets were frozen a year ago but whose names were absent from an EU list of those on whom sanctions were renewed for a further period. An EU official said they were removed from the list of those under sanctions because the new Ukrainian authorities had not initiated formal legal proceedings against them, a necessary condition for the bloc to maintain restrictive measures. The new leadership in Kiev alleges that Yakimenko, 50, was involved in killing civilians during the Maidan protests last February and have demanded Russia send him back. His successor at the head of the SBU accused him last summer of channeling arms to pro-Moscow rebels and called him "Traitor No. 1". "Allegations are not enough," one EU diplomat said, noting sanctions could not continue without formal legal moves. Yanukovich, his elder son and his last two prime ministers were among 14 people on whom the asset freeze was extended for a further year, according to a notice in the EU's Official Journal giving details of a decision taken by member states on Thursday. All of those sanctioned have been named at least as suspects in Ukrainian cases, the EU official said. The legal notice says all are accused of misappropriating public funds or assets. The current government says Yanukovich, who is now in exile in Russia, and his allies looted the state treasury of over $30 billion during his four years in power. Four people, including Yanukovich's younger son and the businessman brother of the former president's chief-of-staff, had sanctions on them extended for three months until June 6. The EU official said this was to give Ukrainian authorities a little more time to start formal legal proceedings. Of 22 allies of Yanukovich under sanctions since last year, four were absent from the newly published list - Yakimenko, former presidency advisers Ihor Kalinin and Andriy Portnov, and Oleksiy Azarov, son of former prime minister Mykola Azarov. Yanukovich, his two sons and a Ukrainian businessman have filed suits asking the EU's top court to annul the sanctions. (Editing by Tom Heneghan)