Newsletter of the main news 28.04/04.05

1️⃣ Frozen Russian assets

The Ukrainian government has approved an agreement with Japan to provide approximately $3 billion as part of the international ERA initiative — the funds will come from the proceeds of frozen Russian assets. The funding will be used for budgetary needs, reconstruction, and development of the country, with the total amount of support under this mechanism amounting to $50 billion.

For the first time in Europe, it was decided to use frozen Russian assets for compensation — but not to Ukraine, but to Western investors whose property was confiscated in Russia. Euroclear will transfer part of the €10 billion in sanctioned assets belonging to Russian companies and citizens, based on permission from the Belgian government. This does not apply to the reserves of the Central Bank of the Russian Federation, but it is an important step in increasing sanctions pressure on Moscow.

2️⃣ Sanctions, violations, and circumvention

The EU is preparing a 17th package of sanctions against Russia if Moscow does not stop its aggression against Ukraine, French Foreign Minister Jean-Yves Le Drian said, adding that the measures are to be agreed with the US in coordination with Senator Lindsey Graham's initiative on “devastating” sanctions. Barrot stressed that Vladimir Putin remains the only obstacle to peace at present and also suggested the possibility of a new economic agreement between France and Ukraine in the field of rare earth metals.

The US has finalized a new package of sanctions against Russia, which includes restrictions on the banking and energy sectors, in particular Gazprom and companies in the natural resources sector. However, it is not yet known whether President Donald Trump will sign these measures — the final decision is currently under consideration by the US National Security Council.

The Dutch Financial Investigation Service (FIOD) has for the second time seized timber stocks from two companies suspected of continuing to trade in Russian timber through Chinese intermediaries, despite ongoing investigations and previous seizures in 2024. The investigation is being conducted with the participation of the public prosecutor's office and the NVWA environmental inspectorate and concerns violations of sanctions legislation and the EU Timber Regulation (EUTR), which prohibits the import of Russian timber from April 2022.

The US Department of Justice has brought formal charges against Andriy Kostin, head of Russian state-owned bank VTB, for circumventing sanctions and laundering money through offshore companies, despite sanctions imposed on him in 2018. Along with Kostin, former banker Vadim Wolfson (Belyaev) and US citizen Gannon Bond have also been charged. The case for violating US law (IEEPA) and international fraud will be heard in the Southern District Court of New York starting on June 16.