Newsletter of the main new 28.07/03.08

1️⃣ Frozen Russian Assets

 

The Deposit Guarantee Fund has sold the assets of the former subsidiaries of Russian banks MR Bank and Prominvestbank worth UAH 5.5 billion through online auctions. Over three years, nearly 600 lots were sold – ranging from buildings and land plots to vehicles and loan receivables. Part of the proceeds was allocated to the state budget.

 

In central London, the Russian superyacht Phi has remained impounded since 2022 under the UK’s sanctions policy. Despite the vessel’s luxurious fittings, its seizure has sparked legal disputes and millions in maintenance costs. The yacht’s owner, Russian developer Sergey Naumenko, is not under sanctions and is challenging the UK authorities’ actions in court, claiming the seizure was unlawful. Other countries that detained Russian-owned superyachts face similar challenges: maintenance costs run into tens of millions of dollars, while legal hurdles prevent their sale or use.

 

In the U.S. Senate, a new bipartisan bill has been introduced to provide $54.6 billion in aid to Ukraine, one-third of which is expected to come from confiscated Russian assets and arms sales to allies. The bill allocates $30 billion for security assistance, expands the President’s authority to transfer weapons, and reinstates the task force for locating Russian oligarchs’ assets. It requires the Trump administration either to confiscate Russian assets or to submit a plan for their investment or taxation.

 

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2️⃣ International Sanctions Policy

Serbian President Aleksandar Vučić stated that Belgrade would not impose sanctions on Russia, citing the priority of national interests. He described State Secretary Starović’s earlier remarks—which initially drew a sharp reaction from Russian media but were later interpreted as a “friendly” stance by Serbia—as “imprudent.” Meanwhile, the EU expressed disappointment over Belgrade’s refusal to align its foreign policy with Brussels despite seeking EU membership.

 

China has sharply criticized recent Ukrainian sanctions against Chinese companies supporting Russia’s military-industrial complex. On July 28, Foreign Ministry spokesperson Guo Jiakun stated that Beijing would “firmly defend the legitimate rights” of its firms, condemning the Ukrainian restrictions as having “no basis in international law.” A day earlier, President Zelensky introduced new sanctions, aligned with the EU’s 18th package, targeting suppliers of dual-use goods to Russia.

 

Gulf states are prepared to rapidly ramp up oil production if the U.S. imposes 100% tariffs on Russian crude in the event that Moscow refuses to end the war. The main buyers are India and China, though New Delhi may cut imports to avoid trade disputes with Washington. China is likely to maintain purchases. According to the IEA, Russia exports 4.68 million barrels of oil per day. Even if Chinese imports persist, Russian finances would take a significant hit.

 

The UK has rejected an appeal by Roman Abramovich’s associate, Eugene Shvidler, seeking to lift sanctions. The High Court ruled that the measures had a “rational connection” to pressuring Russian business interests and countering Russia’s war against Ukraine. Earlier, Britain had frozen Shvidler’s assets and impounded his superyacht under sanctions.

 

Latvia has restricted access to ten websites disseminating Russian propaganda, justifying Russian military actions, and legitimizing the occupation of Ukrainian territories. The media regulator NEPLP stated that these platforms undermined national security and the country’s information space. The blocked websites had also recruited for the Russian army.

 

Owners of three tankers chartered by India’s Nayara Energy are seeking to terminate contracts over risks posed by new EU sanctions against the Russian-linked company. Controlled by Rosneft, Nayara operates India’s third-largest oil refinery but is forced to reduce production due to fuel storage limitations. Sources say sanctions pressure is complicating both exports and domestic deliveries.

 

The UK’s Office of Financial Sanctions Implementation (OFSI) fined Markom Management Limited £300,000 for processing a payment of over £416,000 to a sanctioned individual whose assets were frozen under restrictions against Russia. OFSI stated that the company acted knowingly, failing to ensure proper sanctions compliance. London emphasized that financial restrictions remain a key tool of pressure on the Kremlin, with new rules potentially imposing even harsher penalties for violations.

 

Rosatom can no longer independently build nuclear power units – sanctions, funding shortages, and restrictions on international markets have left the company reliant on state support, according to Ukraine’s Center for Countering Disinformation. Despite official statements about global ambitions, including cooperation with Niger, Russia is struggling to bypass sanctions and maintain influence, while key industries survive only through subsidies.

 

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3️⃣ Sanctions Violations and Evasion

 

The Swiss State Secretariat for Economic Affairs (SECO) has recorded 77 proceedings related to sanctions breaches against Russia, 65 of which have been closed. In 26 cases, companies were fined between 300 and 5,000 Swiss francs, mostly for negligence. Most violations involved industrial goods, particularly parts for metalworking machines banned from export to Russia due to their potential military applications. Two of the most serious cases have been referred to the Federal Prosecutor’s Office.

 

Andrew Pogosyan, a 68-year-old company owner from Wisconsin, pleaded guilty to conspiracy and smuggling goods to Russia in violation of U.S. export controls. From September 2022 to October 2023, he exported diagnostic equipment components to Russia without the required licenses, using third countries – including Kazakhstan, Uzbekistan, and Turkey – to conceal the end recipient. He faces up to 10 years in prison for each violation, with sentencing set for October 7.

 

Austrian company Andritz AG has agreed to pay a $1.58 million fine in the U.S. for sanctions violations involving Russia. Its U.S. subsidiary made 36 shipments of paper industry equipment to Russia in 2023–2024 without the necessary licenses. The company voluntarily disclosed the violations and cooperated with U.S. authorities.

 

Valentina Matviyenko, Speaker of Russia’s Federation Council and under EU sanctions, was able to attend a conference in Geneva thanks to Italy and France granting her plane overflight permission. According to Bloomberg, Switzerland requested exemptions on diplomatic grounds. The flight passed over Turkey, the Mediterranean Sea, and the territories of both countries despite the EU entry ban.

 

Russia has put up for privatization confiscated assets of the Ukrainian alcohol producer Bayadera Group, including nearly 100% of the shares in the Veliky Ustyug distillery and full stakes in companies in Moscow and occupied Crimea. The total value of these assets, seized by a court in Russia’s Vologda region, is estimated at 9 billion rubles. Russian authorities accused the owners of holding an “anti-state position” and financing the Ukrainian Armed Forces.

 

An investigation by Linkiesta revealed that Sergey Matviyenko, son of Valentina Matviyenko and under U.S., Japanese, and Canadian sanctions, resides in Italy and shields assets through a network of shell companies and trusts in San Marino. By holding an Italian tax number without conducting business, he maintains residency and access to local banks, bypassing sanctions. Italian Senator Ivan Scalfarotto called the situation “intolerable” and demanded explanations from the government.

 

German engineering firm Spinner is under investigation for allegedly supplying over 20 high-precision machines to Russia worth €5.5 million in violation of sanctions. Munich prosecutors say the equipment reached Russia’s defense sector via third countries and falsified documents. Searches were conducted in company offices in Germany and Bulgaria, and three employees have been charged. According to Arte’s investigation, some of the machines may have reached Russia through Turkey and China.

 

Hungary has become a transit hub for sanctioned Russian defense companies advancing Kremlin interests in Europe. Despite NATO and EU membership, Viktor Orbán’s government reportedly allows Russian corporations, diplomats, and intelligence operatives to use the country as a base of operations. This information comes from newly obtained documents through an international cyber operation by InformNapalm and Militant Intelligence.

 

Banks in the United Arab Emirates are increasingly restricting Russian companies’ operations: about 30% of Russian firms have received notices of account closures or transaction freezes. Financial institutions have tightened compliance to avoid being placed on the FATF “grey list” and to demonstrate adherence to international sanctions. Controls intensified following the EU’s 18th sanctions package and previous UK allegations of aiding Russian sanctions evasion.

 

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4️⃣ Ukraine’s Sanctions Policy

 

President Zelensky has signed a law expanding sanctions against Russia’s “shadow fleet.” The legislation allows restrictions to be imposed on vessels and aircraft involved in transporting oil, weapons, or military cargo under Russian schemes. The Security Service of Ukraine and intelligence agencies will be empowered to record such cases, with information about these transport assets entered into the State Sanctions Register.

 

Ukraine has imposed sanctions on captains of Russia’s shadow fleet and companies transporting Russian energy resources, aligning measures with those of the EU. Restrictions include asset freezes, bans on financial and trade transactions, blocked transit through Ukraine, and prohibitions on property acquisition. The list features captains who made dozens of voyages from Russian ports to China, India, and Turkey, facilitating Russia’s sanctions evasion.