Newsletter of the main news 30.12/05.01

1️⃣ Russian assets frozen

Ukraine will receive $15 billion under the PEACE in Ukraine project, which is secured by future income from frozen Russian assets. The agreement was signed by the Ministry of Finance of Ukraine and the World Bank. Prime Minister Denys Shmyhal noted that these funds are part of the $20 billion contribution of the United States under the G7 initiative and will be used for social and humanitarian needs. He expressed gratitude for the support that makes the aggressor pay for the war.

In addition, Prime Minister Denys Shmyhal said that in 2025 Ukraine plans to develop and approve a mechanism for the full confiscation of Russian frozen assets. According to him, these funds will become the basis for financing the country's recovery and ensuring its sustainability. Shmyhal also noted that the government has a clear plan for 2025 to ensure pensions, salaries and social support, expecting additional funds from the EU, IMF and $50 billion from the G7 and EU countries, which will be secured by confiscated assets.

President of Ukraine Volodymyr Zelenskyy proposed to US President-elect Donald Trump to use frozen Russian assets worth $300 billion to purchase US weapons. According to the president, this will be economically beneficial for the US and a guarantee of security for Ukraine, as the funds will be used for military support using Russian resources. Zelenskyy also stressed the importance of strengthening sanctions against Russian energy and the shadow fleet and emphasised NATO's role as a key security guarantee for Ukraine.

2️⃣ Sanctions, their circumvention and violations

Ukraine's Foreign Minister Andriy Sybiga said that sanctions against Russia are effective, but they need to be strengthened. He called for closing existing loopholes and increasing pressure in areas such as the shadow fleet, metallurgy, liquefied natural gas, frozen assets, nuclear energy, the military industry and the IT sector. According to him, this is necessary to further undermine Russia's economic capabilities.

Finnish customs has recorded more than 900 attempts to illegally export sanctioned goods to Russia since 2022, although the number of violations decreased in 2024 due to the closure of the Finnish-Russian border. Most of these were minor violations by individuals, but planned schemes to supply goods to the Russian army were also detected. In October 2024, an investigation was launched into a company that illegally transported drones, sonar and other electronics worth hundreds of thousands of euros to Russia.

Five Russian billionaires under Western sanctions control companies that supply more than 75% of the chemical components for explosives production in Russia. These materials are transported by rail to large explosives factories, despite Western sanctions. The investigation shows that these companies avoid significant financial restrictions and continue to import critical goods from the US and EU. Meanwhile, the Kremlin is actively investing in military production, producing 2.4 million artillery shells in 2024 and importing another 3 million from North Korea.

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) entered into a $22,172 settlement with SkyGeek Logistics, Inc. to resolve potential civil liability for six sanctions violations. In 2024, SkyGeek made two attempts to make refunds and sent four shipments to UAE-based individuals who are sanctioned for their ties to Russia's aerospace and technology sectors. OFAC took into account the voluntary disclosure of the violations and their irregularity when determining the amount of the agreement.

3️⃣ Ukraine's confiscation policy

In 2024, Ukraine recovered UAH 2.5 billion of Russian assets to the budget, which was one of the key achievements of the Ministry of Justice. Other results include the documentation of thousands of war crimes, the launch of a web portal for collecting human rights violations, the creation of registers to protect deported children and to account for damages, including damaged property and forced relocation. The Ministry of Justice also noted progress in combating raiding, ratification of the Rome Statute and implementation of the sanctions policy.