Newsletter of the main news 04.08/10.08

1️⃣ Frozen Russian Assets

 

An Austrian court has authorized Naftogaz to recover over €120 million from Russia by seizing more than 20 Russian real estate properties for subsequent auction. This is part of a campaign to enforce an award of over $5 billion issued by the Hague arbitration tribunal for the unlawful seizure of the company’s assets in Crimea. Similar proceedings are ongoing in other countries where Russia holds property.

 

Between May 2022 and July 2025, the High Anti-Corruption Court of Ukraine (HACC) issued 70 rulings on transferring assets belonging to individuals supporting Russia’s aggression to the state. In total, over UAH 561 million, USD 236 million, and EUR 439,000 have been confiscated under the Law of Ukraine “On Sanctions.”

 

The United States has put up for auction the superyacht Amadea, seized from sanctioned oligarch Suleiman Kerimov. Valued at $325 million, the vessel was detained in Fiji in 2022 as part of Operation KleptoCapture. The auction will take place on 10 September, with a starting deposit requirement of $10 million, and the sale price may be significantly below the valuation. The U.S. government has already spent around $32 million on the yacht’s maintenance.

 

In Latvia, a new auction for the sale of the “Moscow House,” confiscated from the municipal property department of the Russian capital, will begin on 8 August. The starting price is €2.142 million, with bidding open until 8 September. The proceeds are expected to be transferred to Ukraine or Ukrainians. The building was seized in 2024 after evidence of support for pro-Russian activities following the full-scale invasion.

 

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2️⃣ International Sanctions Policy

 

Microsoft temporarily suspended cooperation with India’s Nayara Energy after the company was included in a new EU sanctions list targeting entities generating significant revenue for Russia. Blocking access to Teams and Outlook, Microsoft restored the services two days later following a lawsuit filed by Nayara in an Indian court. Subsequently, Nayara contracted local provider Rediff, reigniting discussions in India and the EU about the risks of reliance on foreign technology suppliers in the context of digital sovereignty.

 

Starting in August, Panama will stop registering oil tankers over 15 years old and will inspect vessels under its flag every three months—a move targeting Russia’s “shadow fleet,” with an average age of 20–25 years. Earlier, the Bahamas announced the removal from its registry of vessels linked to Russia or engaged in Russian trade.

 

The EU is considering sanctions against China over the supply of drones and components to Russia in circumvention of restrictions. A Reuters investigation revealed that Chinese engines were shipped via shell companies disguised as industrial equipment. Brussels has already sent inquiries to Beijing but has received no direct responses and has stated its readiness to apply economic pressure if support for Russia continues.

 

A report by the Institute for Strategic Dialogue found that sanctioned Russian media outlets, including RT and Sputnik, remain accessible in the EU despite the 2022 ban. In 76% of cases, providers do not block their domains due to the absence of a comprehensive list from the European Commission. Experts urge the creation of a continuously updated registry to ensure effective enforcement and to address circumvention through mirror sites.

 

Russia’s attempt to lease aircraft from Ethiopian Airlines failed after the carrier, adhering to U.S. sanctions and international regulations, refused the deal. Moscow sought a wet-lease arrangement for domestic flights, but similar negotiations with other countries have also ended unsuccessfully. Western restrictions continue to block Russian carriers’ access to aircraft and spare parts, deepening the crisis in Russia’s aviation sector.

 

The EU will introduce a new dynamic price cap on Russian oil starting 3 September 2025 as part of its 18th sanctions package. On 8 August, a ban on transactions with an additional 22 Russian banks will also take effect. The package is estimated to cost Russia at least $10 billion by year-end. Preparations are underway for the 19th package, which will target Russia’s financial infrastructure and shadow fleet.

 

U.S. President Donald Trump has imposed an additional 25% tariff on goods from India linked to Russian oil, effective in 21 days. The measure is part of a strategy to pressure countries that continue trading with Russia. India’s Ministry of External Affairs called the decision “unjust and unfounded” and pledged to take measures to protect national interests.

 

The UK has published new business guidance to counter Russia’s sanctions evasion, identifying 13 countries through which Moscow may obtain prohibited goods. The document urges enhanced client and transaction due diligence, attention to “red flags,” and monitoring of high-risk goods categories, including electronics, equipment, and vehicles. The government emphasizes that sanctions extend to indirect transactions and that due diligence must be an ongoing process.

 

Western sanctions on foreign aviation components are crippling commercial aircraft production in Russia, while high interest rates curb investment. Airlines, whose fleets mainly consist of Airbus and Boeing aircraft, are forced to import parts through complex indirect routes. Experts acknowledge that restoring Russia’s own manufacturing capacity will take years or even decades.

 

Canada will lower the price cap on Russian oil from $60 to $47.60 per barrel to increase pressure on Putin’s military apparatus and restrict war financing. The necessary legislative changes are expected in the coming weeks, with provisions for further adjustments.

 

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3️⃣ Sanctions Violations and Evasion

 

In Germany, authorities raided Spinner Werkzeugmaschinenfabrik GmbH, suspected of sending 20 machines for ammunition production worth €5.5 million to Russia via third countries. Three individuals have been charged with sanctions violations, and the investigation spans offices in Germany and abroad. One of the machines was reportedly manufactured for a plant producing shells for the war against Ukraine. Sanctions evasion in the EU is now punishable not only by fines but also by imprisonment.

 

An Italian investigation revealed that sanctioned Russian oligarchs indirectly receive EU funds, including through wineries in Italy. After sanctions were imposed, they re-registered businesses in relatives’ names, changed jurisdictions, and exploited loopholes in beneficiary control. The lack of a unified EU ownership registry enables continued access to public resources despite restrictions.

 

Ukraine has reported finding components from Indian companies Vishay Intertechnology and Aura Semiconductor in Russian attack drones and called for stronger export controls. Andriy Yermak stressed that these drones are used against civilians, and supplying parts through third countries enables Russia to circumvent sanctions. India stated that exports of dual-use goods are strictly regulated, but Ukraine and the EU insist such loopholes must be closed.

 

India’s Nayara Energy has, for the first time since sanctions were introduced, exported gasoline—its tanker Tempest Dream carrying 43,000 tons of fuel left for Oman, despite the vessel being under UK sanctions. The company is also preparing to ship diesel aboard the Sard, which is under EU sanctions, and faces sales challenges due to restrictions, pushing it to focus more on the domestic market.

 

Russia’s Biysk Oleum Plant, a producer of explosives, obtained Siemens equipment via Chinese suppliers Huizhou Funn Tek and New Source Automation, bypassing sanctions. Both companies confirmed they can purchase Siemens products without end-user checks. Siemens has announced an investigation and stressed that all clients must comply with sanctions.

 

Flemish company Campine is suspected of supplying around 300 tons of antimony to Russia in violation of EU sanctions. According to the REBUS investigation, the metal reached Russia through intermediaries despite the export ban in place since December 2023. Campine claims it stopped direct shipments in 2022 and required customer assurances against re-export to Russia, but experts stress the company must verify the end user.

 

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4️⃣ Ukraine’s Sanctions Policy

 

President Volodymyr Zelensky has imposed sanctions on the leadership of several Russian museums, including Peterhof, the Pushkin Museum, the Borodino Military History Museum, and others, as well as on 39 individuals and 23 companies in Russia and the occupied territories. According to the Ministry of Culture, these institutions are involved in the theft of Ukrainian cultural heritage and attempts to erase Ukrainian identity.

 

The Cabinet of Ministers has approved a plan to enforce sanctions against 99 entities, including captains and companies from Russia’s “shadow fleet” circumventing the oil embargo and delivering Russian petroleum products to third countries. The Security Service of Ukraine (SBU) has documented these tankers operating in the Black, Baltic, and Red Seas, engaging in ship-to-ship transfers and disabling AIS tracking systems.

 

The National Security and Defense Council (NSDC) has stated that it does not plan to impose sanctions on Russian publishers, despite an appeal from the Ukrainian Book Institute concerning Litres, Eksmo-AST, and Piter. The NSDC explained it can only consider such measures upon proposals from legally designated entities, such as the SBU or the government. Earlier, the State Committee for Television and Radio Broadcasting blocked the sale of 8,500 Russian and Belarusian publications on online platforms.

 

The President of Ukraine has signed decrees imposing sanctions on Rosatom, its subsidiaries, and 35 other individuals and legal entities involved in integrating the Zaporizhzhia Nuclear Power Plant into Russia’s energy system and seizing the Chornobyl Nuclear Power Plant. The restrictions target the energy sector, the military-industrial complex, shadow fleet companies, equipment suppliers, and networks of intermediaries in third countries, aligning with sanctions by Western partners.