The Euro 2012 hosts will have to play one 2018 World Cup qualifier behind closed doors and will not be able to stage any matches in Lviv after being found guilty of racist conductUkraine have been banned from playing 2018 World Cup qualifiers at the Arena Lviv due to "racist and discriminatory incidents".
The Football Federation of Ukraine (FFU) appealed against the sanctions originally made in September relating to the World Cup 2014 qualifier between Ukraine and San Marino that took place in the same month.
As well as instances of racism, Fifa also confirmed that problems were caused by "pyrotechnical devices" during the match, which the hosts won 9-0.
The world's governing body confirmed on Wednesday that the appeal had been dismissed, with Ukraine unable to play at the stadium for the duration of the next World Cup qualifying campaign.
In addition, Ukraine's next home qualifier for the competition in 2018 will also be played behind closed doors and the FFU has been fined CHF45,000 (around €36,500).
The federation has also been warned as to its future conduct.
A Fifa statement read: "After receiving a report by Fare (Football Against Racism in Europe), the committee agreed that the offensive and discriminatory actions of a group of Ukrainian supporters were shameful and a clear breach of the Fifa Disciplinary Code."