Newsletter of the main news 21.04/27.04

1️⃣ Frozen Russian assets

Ukrainian Prime Minister Denys Shmyhal met with Liechtenstein Prime Minister Brigitte Gaass on the sidelines of the Spring Meetings and thanked her for her support in the fight against Russian aggression and called for tougher sanctions against Russia and the creation of a mechanism for confiscating frozen assets. Shmyhal also noted Liechtenstein's financial assistance for Ukraine's recovery, its support for children through the construction of family homes and the opening of the ‘School of Superheroes.’

2️⃣ International sanctions policy

US Secretary of State Marco Rubio explained that Washington is refraining from imposing new sanctions against Russia, as this could prolong the war for several more years. In an interview with NBC News, he stressed the importance of dialogue with both sides of the conflict for a peaceful settlement, noting that the US remains the only party capable of negotiating with both Russia and Ukraine, and that the next few days will be crucial for reaching agreements.

The United Kingdom has introduced 150 new trade sanctions against Russia, restricting access to technology, innovative software, electronics, chemicals, machinery and metals, particularly for the military and energy sectors; Junior Minister Stephen Doughty stressed that these measures are aimed at weakening the financing of the war against Ukraine, and the new package of restrictions took effect immediately.

Switzerland has joined the new EU sanctions against Russia, extending the ban on advertising in eight Russian media outlets and updating the sanctions lists with 158 new individuals and organisations; according to the State Secretariat for Economic Affairs, these measures are aimed at increasing economic pressure on Russia and limiting its propaganda abroad.

Estonian Foreign Minister Margus Tsahkna said that Hungary's blocking of sanctions against Russia could lead to the unfreezing of €210 billion in Russian assets securing loans to Ukraine, which would place the financial burden on EU and G7 taxpayers; Tsahkna warned that the loss of guarantees on a €50 billion loan would pose a serious risk, as Hungary could exercise its veto in July and the European Commission's backup options have little chance of success.

3️⃣ Violation and circumvention of sanctions

The Dutch Public Prosecutor's Office has opened a criminal case against one of the largest shipbuilding companies, Damen Shipyards, its chairman Arno Damen and two former executives on suspicion of bribery, money laundering and violating sanctions against Russia through the supply of technology after 2022. The investigation has been ongoing for more than seven years and could result in Damen being banned from EU tenders, jeopardising contracts with the Dutch Ministry of Defence worth more than €5 billion. Systematic overpayments to agents abroad have also been uncovered, with a risk of bribery of officials.

A group of MEPs called on Greek Prime Minister Kyriakos Mitsotakis to stop the sale of Greek ships to companies linked to Russia, stressing that the transferred ships help Moscow circumvent sanctions and have brought Greek shipowners around $4 billion in profits; MEPs warned that the activities of the “shadow fleet” would provide Russia with an additional $9.4 billion in 2024 and called for restrictions on the sale of ships to unknown owners and controls on oil transhipments in Greek waters.

In Lithuania, a scheme to circumvent sanctions was exposed: searches were carried out in Vilnius at a company that organised illegal deliveries of goods to Russia and Belarus via Central Asia, seizing sanctioned goods, cash, weapons, ammunition and explosives worth around €1.5 million; the director, the owner of the company and three employees were detained, and the investigation found that the firm had also helped other companies to set up illegal exports.

4️⃣ Ukraine's sanctions policy

More than UAH 1.4 billion from the seizure of assets of the Ocean Plaza shopping and entertainment centre, following a decision by the Ministry of Justice due to the owners' links with Russian businessmen subject to sanctions, has already been transferred to the Fund for the Elimination of the Consequences of Armed Aggression; the funds will be used to restore housing, schools, hospitals and critical infrastructure, and the privatisation of Ocean Plaza is being prepared in the near future, with the proceeds also going towards Ukraine's recovery.

Oschadbank has seized Russian assets in France worth around €87 million as part of compensation for the expropriation of its property in Crimea after the 2014 annexation, made possible by a 2018 ruling by the Paris Arbitration Court; the bank has priority rights to recovery, and its chairman, Serhiy Naumov, stressed that this is the first Ukrainian state-owned company to achieve such a result, emphasising the symbolic significance of the ruling in France.