Newsletter of the main news 24.02/02.03

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Date

02 Mar 2025

1️⃣ Frozen Russian assets

European leaders have not yet agreed on the confiscation of frozen Russian assets and their transfer to Ukraine. French President Emmanuel Macron stressed that international law does not allow full confiscation of these funds, but the income from the assets is already being used to finance loans at the G7 level. Also, Polish Prime Minister Donald Tusk noted that although many countries support the idea of using these funds for defence and reconstruction of Ukraine, there are concerns about the impact on the euro and the banking system. Poland is trying to convince its partners of the need to transfer funds, but its vote is not decisive because it is not a member of the eurozone. At the same time, he said, it is important to ensure that the asset freeze sanctions are extended, which may be opposed by Hungary.

Estonian Prime Minister Kaja Kallas expressed doubts that the EU will be able to reach an agreement on asset confiscation in March, as there is currently no unanimous support. She noted that work in this direction is ongoing, and some countries that were previously opposed are beginning to change their position. At the same time, France, Germany, Belgium, and Luxembourg are currently opposed to asset confiscation. Nevertheless, EU leaders agree that Russia should be held accountable for the damage caused to Ukraine, and the issue of frozen assets may become part of future negotiations after the war is over.

2️⃣ International sanctions policy

Donald Trump has extended for a year the sanctions against Russia, which were maintained under the state of emergency declared in 2014 due to aggression against Ukraine. The official notice published in the US Federal Register states that the decision was made in accordance with the National Emergency Act and applies to restrictions imposed by the decrees of previous presidents in 2014, 2018 and 2022.

Canada has imposed new sanctions on Russia, targeting 10 individuals and 21 entities, including paramilitary organisations and their leaders, to limit Russia's use of third-party structures for military and political purposes in Ukraine. Nine leaders of post-Agner groups, members of the Russian military leadership, as well as organisations operating in Ukraine and the Kremlin's African network, were subject to the restrictions. In total, Canada has already imposed sanctions on more than 3,000 individuals and companies, stressing its readiness to further increase economic pressure on Russia.

The European Union has asked India to support the strengthening of sanctions against Russia, stating that the war in Ukraine poses a threat to India as well. During her visit to New Delhi, European Commission President Ursula von der Leyen plans to discuss this issue with Prime Minister Narendra Modi, as well as raise the topic of a trade corridor between India and Europe, market access and tariff policy. No major decisions are expected as a result of the talks, but the meeting will be a preparatory stage for the India-EU summit at the end of the year.

Europol has set up a special task force on sanctions within the European Financial and Economic Crime Centre (EFECC) to coordinate investigations related to sanctions evasion. The initiative aims to improve the tracing of illicit financial flows and asset seizures by ensuring effective cooperation between law enforcement, customs and financial intelligence agencies. Europol has already received more than 300 operational requests in 90 separate investigations aimed at strengthening sanctions enforcement.

Hungary is trying to get the EU to lift sanctions on eight Russian oligarchs, including Alisher Usmanov, Mikhail Fridman, Pyotr Aven and Dmitry Mazepin, who have been under restrictions since 2022. According to European diplomatic sources, Budapest insists on removing these individuals from the sanctions list, citing its own political and economic interests. The list also includes Gulbahor Ismailova, Vyacheslav Moshe Kantor, Musa Bazhaev and Russian Sports Minister Mikhail Degtyarev, who has been under sanctions since 2014.

3️⃣ Violation and circumvention of sanctions

Over the last three years, the Netherlands has prosecuted at least 70 companies and individuals for violating sanctions against Russia, and another 40 cases are currently under consideration. The Fiscal Service is investigating 30 cases, six of which have already resulted in sentences with fines and imprisonment of up to 32 months. Customs opened 80 cases, of which 64 were settled with fines ranging from €500 to €200,000. The authorities do not disclose the exact number of people fined, as one case may involve several companies or individuals.

Since 2022, HM Revenue & Customs (HMRC) has opened 65 investigations into trade sanctions violations, of which 30 remain active. In particular, 27 of these cases are related to sanctions against Russia, which underscores the increased control over compliance with the restrictions imposed after the outbreak of the war in Ukraine.

The Polish authorities also confirmed that they are currently conducting 275 sanctions investigations, but did not provide details on their nature. It is unclear how many of these cases are related to the violation of sanctions against Russia.

US President Donald Trump said that Russian oligarchs could obtain US citizenship through a $5 million gold card programme. He noted that there are ‘very good people’ among them whom he personally knows and they can afford it, although they are no longer as rich as they used to be. The initiative provides for the possibility of buying citizenship for foreigners, including Russians who once benefited from privatisation and have influence on politics, media and key sectors of the Russian economy.

Russian businessman with Estonian citizenship Ivan Anchevsky was extradited to Estonia after being arrested in Italy on suspicion of illegally supplying equipment to the Russian military-industrial complex. His companies, Melytec and Melytec Testing, which are under US sanctions, sold strategic industrial and measurement equipment worth $50 million. The Estonian Prosecutor's Office accuses Anchevsky of violating the sanctions and keeps him in custody, while investigating the activities of two Estonian companies connected to the supply scheme.

4️⃣ Ukraine's sanctions policy

The HACC upheld the claim of the Ministry of Justice to recover assets of the Russian company Tatneft named after V.D. Shashin, which is one of the largest oil producers and refiners in Russia, into the state's revenue. The HACC ruled to transfer corporate rights to Tatneft's Ukrainian subsidiaries, including 100% of TATNEFT-ASC-UKRAINE, 92.98% of HARKOV-CAPITAL and 88.97% of POLTAVA-CAPITAL, which own oil depots, petrol stations and other assets in Kharkiv and Poltava regions. The decision may be appealed within five days after the full text of the decision is published.

The Appeals Chamber of the HACC upheld the decision to confiscate the assets of Vyacheslav Zanevsky, a former bodyguard of Viktor Yanukovych and an officer of the Russian Armed Forces, in favour of the state. The budget of Ukraine received 100% of the authorised capital of the company that manages the AmstelSki hotel complex in Bukovel, 12 land plots, real estate, vehicles, weapons and over UAH 300,000. According to the investigation, Zanevsky assisted the Russian military in searching for Ukrainian soldiers and patriots in the occupied territories. The court's decision is final and not subject to cassation appeal.

The HACC also upheld the claim of the Ministry of Justice against pro-Russian propagandist Kirill Vyshinsky, seizing his assets for the benefit of the state. Vyshynsky, who supported the occupation of Crimea and received Russian citizenship, lost two properties in Kyiv and Crimea, two vehicles, and 100% of his shares in two companies. After the prisoner exchange in 2019, he became the executive director of Rossiya Segodnya and a member of the Presidential Council. The court's decision has not yet entered into force, as the appeal period is still ongoing.

The HACC upheld the claim of the Ministry of Justice against pro-Russian propagandist Volodymyr Sergienko and imposed sanctions on him. Sergienko, who actively spread Kremlin propaganda through Russian media, lost 1/2 of his apartment in Lviv and 50% of the authorised capital of Healthcare Ukraine LLC. The court ruled on 28 February 2025, recognising his activities as a threat to Ukraine's national security. The decision has not yet entered into force, as the appeal is pending.