Newsletter of the main news 08.12/14.12

1️⃣ Frozen Russian Assets

France supports a reparations loan for Ukraine, but only through assets held at Euroclear rather than funds belonging to French commercial banks, the Financial Times reports. Around €18 billion in Russian assets are frozen in France, but the government does not disclose where they are held. Paris argues that commercial banks are subject to separate legal obligations and is unwilling to involve their assets in the loan mechanism.

G7 countries are considering the use of all frozen Russian assets to support peace in Ukraine. In a statement, G7 finance ministers said the funds could be used until Russia pays reparations. The G7 also reaffirmed support for reforms in Ukraine, including anti-corruption efforts, and pledged to increase pressure on Russia if peace talks fail.

Russian companies and business figures under sanctions have filed lawsuits in EU courts seeking at least €53 billion in claims, attempting to challenge the freezing of their assets. Most cases have been brought under the ISDS mechanism, outside EU jurisdiction. The claimed amount already exceeds a quarter of the Russian central bank assets frozen in the EU.

The EU is pressuring Belgium over its blocking of a reparations loan for Ukraine, threatening political isolation, Politico reports. If Brussels does not change its position, it could effectively be sidelined in EU decision-making. An alternative discussed is approving the loan by qualified majority without Belgium’s consent, though this option is not currently considered realistic.

UK banks oppose the transfer of £8 billion in frozen Russian assets to Ukraine due to litigation risks and the lack of compensation guarantees, according to the Financial Times. Financial institutions fear they could be held liable in the event of legal disputes with Russia. At the same time, the UK government has stated it is ready to use these funds to support Ukraine.

Slovak Prime Minister Robert Fico has pledged to block EU decisions on a “reparations loan” for Ukraine and the use of frozen Russian assets. He said Slovakia would not support funding Ukraine’s military needs in 2026–2027, citing a “peace policy.” Fico also criticised Ukraine and referred to his support for Donald Trump’s “peace initiatives.”

The Central Bank of Russia has announced plans to file a lawsuit against Belgium-based депозитарій Euroclear over the freezing of its assets. This follows an EU decision enabling the indefinite freezing of Russian assets without the risk of national vetoes. Russia describes any potential use of these funds for Ukraine as “illegal.”

Italy has joined Belgium in blocking the EU plan for a reparations loan to Ukraine, Politico reports. Together with Malta and Bulgaria, Rome is calling for alternative approaches to using Russian assets. One option discussed is issuing joint EU debt, but this would require unanimity and could be vetoed.

The EU has decided to freeze the assets of the Central Bank of Russia indefinitely to prevent their unfreezing through national vetoes. This opens the way for using the funds for a reparations loan to Ukraine. The decision allows the EU to bypass resistance from individual member states and ensures Russia will not regain access to the assets “either directly or indirectly.”

2️⃣ International Sanctions Policy

EU ambassadors have approved a new sanctions package against Russia targeting the “shadow fleet.” The measures apply to nine individuals and companies, as well as 43 vessels. An additional 12 individuals and two organisations believed to be involved in destabilising the EU were also sanctioned.

The International Olympic Committee has allowed Russian and Belarusian athletes to participate in youth international competitions under their national flags. The decision also applies to the 2026 Youth Olympic Games and depends on the rules of individual federations. At the same time, the ban on hosting competitions in Russia remains in force, while adult athletes may compete only under neutral status.

Switzerland has expanded sanctions against Russia and Belarus, adding 22 individuals and 42 companies linked to the defence sector, energy, and the shadow fleet. Restrictions also apply to 116 vessels, five Russian banks, and dozens of companies in third countries. The aim is to block sanctions circumvention and the supply of critical goods to Russia.

3️⃣ Sanctions Violations and Evasion

Russia is supplying LNG to China in circumvention of US sanctions: the tanker Valera, which loaded gas at the sanctioned Portovaya facility, arrived at China’s Beihai terminal. China does not recognise unilateral sanctions and continues to increase purchases of Russian gas. During the autumn months, LNG deliveries from Russia to China rose by around 14% year-on-year. Some shipments involved ship-to-ship transfers and signs of route concealment.

Moldova has blocked a $107 million cryptocurrency fund allegedly linked to attempts to finance protests and exert political influence on behalf of Russia, Foreign Minister Mihai Popșoi said. Cryptocurrencies were used for fast, hard-to-trace transactions. Authorities describe the case as part of a broader campaign of Russian interference, despite Moldova’s increased resilience.

Kazakhstan has tightened export controls to limit the transit of sanctioned and dual-use goods to Russia. The new rules introduce export licensing and bans on the re-export of certain goods from the EU, the US, and the UK to CIS countries, primarily Russia. While Astana has not formally joined sanctions, it is narrowing Russia’s access to critical goods.

4️⃣ Ukraine’s Sanctions Policy

Ukraine’s Security Service detained a Russian shadow fleet vessel in Odesa that belonged to a sanctioned owner and regularly changed its name and beneficiaries to evade restrictions. The ship called at ports in occupied Crimea and was involved in the illegal export of grain and other cargo. The vessel has been seized and will be transferred to ARMA for management.

Ukraine has introduced its largest sanctions package to date against Russia’s shadow fleet used to circumvent energy restrictions. The sanctions target vessels flying the flags of more than 50 countries. Kyiv will share the data with partners to synchronise measures and halt the issuance of licences.