Newsletter of the main new 21.07/27.07

All news

Date

27 Jul 2025

1️⃣ Frozen Russian Assets

The court in The Hague has lifted the freeze on Gazprom's stake in the joint venture Wintershall Noordzee, established with Germany’s Wintershall Dea, which operates gas extraction in the North Sea. The freeze, imposed in May 2024 at the request of two Ukrainian companies, had blocked the sale of the Russian holding’s assets worth around €344 million. The new ruling opens the way for Gazprom to complete the deal to sell stakes in a number of European enterprises, which could alter the ownership structure in the regional energy market.

2️⃣ International Sanctions Policy

Russia has criticized the EU’s decision to impose sanctions on India’s Nayara Energy refinery, 49% owned by Rosneft, calling them “illegal.” The refinery processes about 400,000 barrels of oil per day, operates nearly 7,000 fuel retail points, and develops petrochemical production in India. The company stated that it does not receive dividends from the refinery’s profits, as all revenues are directed toward enterprise development and taxes in India. Meanwhile, India’s Ministry of Foreign Affairs emphasized that it does not recognize the EU’s unilateral sanctions against its companies, as the country’s energy sector is a matter of national security.

The EU has imposed sanctions on Iranian oil businessman Hossein Shamkhani for his role in trading Russian oil and managing Russia’s “shadow fleet,” Bloomberg reports. His companies, Admiral Group and Milavous Group Ltd, registered in Dubai, were also sanctioned. The EU noted that Shamkhani’s activities provide substantial revenue for the Russian government. Bloomberg’s earlier investigation revealed that his network became a key player in the export of Russian and Iranian oil, including via a hedge fund with offices in London, Dubai, and Geneva, though Shamkhani denies these accusations.

The UK has sanctioned 135 tankers of the Russian “shadow fleet” used to transport oil, aiming to deprive Russia of revenue to finance its war against Ukraine, stated Foreign Secretary David Lammy. According to London, since the start of 2024, these vessels have transported Russian oil worth $24 billion. The restrictions also targeted two UAE-based companies: Litasco Middle East, linked to Lukoil, and Intershipping Services, which operates under the flags of Gabon and the Comoros.

On July 22, the agreement between Russia and the UN, which since 2022 allowed unhindered export of Russian food and fertilizers to international markets, expired. The document was not extended due to “significant differences,” AFP reports. Although Western sanctions formally did not apply to these goods, insurance risks and compliance concerns complicated shipments. Moscow accused the EU and other Western countries of breaking the agreements, stating that none of the agreement’s goals were achieved, but left open the possibility of further cooperation with the UN on food security issues.

Russia announced the expansion of its “blacklist” in response to the EU’s 17th and 18th sanctions packages adopted on May 20 and July 18. Entry bans to Russia were imposed on representatives of European institutions, governments, and law enforcement agencies of EU member states and other countries that support military aid to Ukraine, advocate for the confiscation of Russian assets, support the creation of a tribunal against Russian leadership, or have engaged in “Russophobic rhetoric.” Moscow called the EU sanctions “illegitimate” and said it is acting in response to “unfriendly steps by the West.”

As part of the 18th sanctions package, the EU removed three Japanese Mitsui O.S.K. Lines LNG tankers — North Moon, North Ocean, and North Light — from the sanctions list. The vessels had been sanctioned in June over suspected transportation of liquefied gas from Russia’s Arctic LNG 2 project but were delisted after the company provided “firm commitments” not to use them for transporting energy resources from Yamal LNG and Arctic LNG 2.

Romania is preparing a law that will introduce criminal liability for companies and individuals attempting to circumvent EU sanctions against Russia. This was announced by Foreign Minister Oana Țoiu, commenting on the adoption of the 18th sanctions package, which also targeted Russia’s “shadow fleet” helping to evade oil price caps. The new measures expand the sanctions list to over 2,500 individuals and 41 organizations and ban 444 Russian vessels from entering European ports. Romania plans to criminalize any attempts to circumvent sanctions to enhance their effectiveness.

Estonia has decided to make sanctions against Alexander Lukashenko’s regime indefinite. Foreign Minister Margus Tsahkna stated that due to the lack of positive changes in Belarus, continued repression, and the regime’s involvement in the war against Ukraine, lifting restrictions is impossible. Estonia’s sanctions list includes 273 individuals, including Belarusian officials, judges, security officers, propagandists, and Lukashenko himself. The restrictions were introduced in 2020 after election fraud and repeatedly extended; they will now remain indefinitely.

Africa’s richest businessman, Aliko Dangote, criticized the supply of Russian oil products to the continent, stating that Moscow sells Africa cheap but often toxic fuel banned in the West. Speaking at a conference in Abuja, he urged African governments to establish strict standards and environmental requirements to protect the market from Russia’s dumping supplies, which have increased following international sanctions on Russian oil.

Liechtenstein has announced the expansion of its sanctions list, joining the EU’s 18th package of restrictions against Russia, adopted on July 18. The new measures target the energy, financial, and military sectors and include travel bans and financial restrictions for 14 individuals and 41 Russian organizations. Additionally, sanctions were imposed on eight organizations and one individual from Belarus, as well as seven individuals and three organizations from Moldova, to prevent sanctions evasion through these countries and to protect Moldova’s sovereignty and stability.

Western sanctions against Russia continue to isolate Kaliningrad, reports Ukraine’s Foreign Intelligence Service. Due to restrictions on transit through Lithuania, major supplies have shifted to sea routes: while in 2019 cabotage amounted to 0.4 million tons, in 2024 the company Oboronlogistics transported over 2 million tons. Overloaded ferries, capacity shortages, and administrative preferences for large operators leave small businesses without market access, exacerbating the region’s economic problems.

Serbian President Aleksandar Vučić stated that the country will not impose sanctions against Russia, calling this stance consistent with national interests. He also criticized remarks by his adviser Starović, which sparked speculation about Belgrade shifting toward the EU. Brussels expressed disappointment over Serbia’s refusal to align its foreign policy with the EU’s, despite its aspiration to join the bloc.

3️⃣ Sanctions Violations and Evasion

In Estonia, Russian citizen Pavel Kapustin was sentenced to 6.5 years in prison for espionage, providing false information, and violating sanctions. The investigation established that he cooperated with the FSB, transmitted data on public sentiment in Narva, and illegally transported sanctioned luxury goods to Russia. The court confiscated assets worth around €90,000, emphasizing that any cooperation with hostile intelligence services is a crime punishable by severe penalties.

Russia is actively using cryptocurrency exchanges registered in Kyrgyzstan to evade Western sanctions, according to a report by TRM Labs. Researchers discovered dozens of shell companies with identical contacts and signs of affiliation with the previously blocked Garantex exchange. Due to weak oversight and favorable legislation, Kyrgyzstan has become a financial hub for purchasing sensitive technologies and transferring funds. Experts stress that without immediate international intervention, Russia could scale this scheme to other countries in the region.

Chinese company Beijing Xichao International Technology and Trade is secretly supplying Russian arms manufacturer IEMZ Kupol with L550E engines for Harpiya-A1 drones despite US and EU sanctions, Reuters reports. Documents show that this allowed Moscow to triple drone production — to over 6,000 in 2025 — which are actively used for attacks on Ukraine. According to Ukrainian intelligence, the Harpiya is based on Iranian Shaheds but equipped with Chinese engines, control systems, and navigation. Beijing denies knowledge of these deliveries.

The UK’s Office of Financial Sanctions Implementation (OFSI) stated that over 90% of cryptocurrency sanctions violations since 2022 are linked to Russia, and British crypto companies “almost certainly” dealt with sanctioned exchange Garantex. The report highlights evasion risks via affiliated platforms, such as Grinex, which allegedly serves Russian clients and processed transactions exceeding $1.2 billion. OFSI recommends checking up to five transaction history steps despite no legal obligation. The report also notes cyberattack risks from North Korea, Iranian involvement, widespread abuse of stablecoins, and weak compliance by companies themselves.

Indian company Ideal Detonators Private Limited shipped two consignments of the explosive HMX (Octogen) to Russia in December, despite US warnings of sanctions risk, Reuters reports, citing customs data. Shipments worth over $1.4 million were received by Russian companies High Technology Initiation Systems and Promsintez. Washington previously classified HMX as critical for Russia’s war effort and warned foreign partners about the consequences of cooperating with the Russian defense industry, but trade between India and Russia, especially in oil, remains steady.

Russia continues to obtain US microchips for its military aircraft despite existing export restrictions, according to a new report by the Independent Anti-Corruption Commission, IPHR, and Hunterbrook Media. Components from Analog Devices, Texas Instruments, Intel, and others were found in Su-34 and Su-35 fighter jets used in attacks on Ukraine’s civilian infrastructure. The research is based on analysis of over 180,000 customs declarations and debris from downed aircraft, where over 1,100 Western parts were found, 6% of which are classified by the US as particularly sensitive. Experts emphasize ineffective supply chain controls and China’s role in helping circumvent sanctions.

Serbia has again appealed to the US Office of Foreign Assets Control (OFAC) to extend the license for Russian company NIS, which expires on July 29. Minister Dubravka Đedović Handanović stated that sanctions against NIS, controlled by Gazprom Neft, could seriously impact Serbia’s and the region’s energy security. She emphasized that Belgrade is working with American and Russian partners to find a long-term solution that will ensure stable oil supplies to the refinery in Pančevo.

The European Commission has launched proceedings against 18 EU member states, including Poland, for failing to implement the directive on criminal liability for sanctions evasion against Russia. Member states had until May 20 to report on its implementation but failed to do so, receiving formal letters requesting explanations. If responses within two months are unsatisfactory, the EC may refer the cases to the EU Court of Justice. The directive, adopted in 2022, aims to harmonize penalties for sanctions violations and make evasion more difficult within the EU.

Lithuanian company EasyStaff, founded by Russian citizens, transferred over €50 million to Russia in 2023 alone by servicing Western companies hiring Russian freelancers. According to an LRT investigation, the platform enables sanctions evasion against Russian banks via alternative payment methods — PayPal, cryptocurrencies, cards, and Skrill. Despite lacking a payment institution license and a tenfold increase in IT service imports from Russia, Lithuanian regulators found no threats in its operations, and the company denies sanctions violations.

Switzerland’s SECO has recorded hundreds of cases of non-compliance with sanctions against Russia: 77 proceedings have been opened, 65 of which have been closed, and fines ranging from 300 to 5,000 francs have been imposed in 26 cases. Violations mostly concerned industrial goods, particularly machine parts that could be used in military production. The two most serious cases have been referred to the Federal Prosecutor’s Office.

4️⃣ Ukraine’s Sanctions Policy

The Ministry of Justice has filed a lawsuit against Volodymyr Oliynyk to confiscate his assets to the state for publicly supporting Russian aggression and collaborating with the occupiers. The former mayor of Cherkasy and ex-MP left for Russia after the Revolution of Dignity, participated in propaganda shows, and in 2022 illegally crossed the border and appeared in the occupied Kyiv region, where he justified Russia’s actions. The lawsuit seeks the confiscation of seven real estate properties, a motor vessel, and a corporate share in LLC “E.S.P. TECHNOLOGIES.”

Ukraine has synchronized the EU’s 18th sanctions package against Russia and introduced additional national restrictions, including on rare earth metals critical for electronics and UAV production. Decrees No. 554 and No. 555 were signed by the President, while Sanctions Commissioner Vladyslav Vlasiuk stressed that the restrictions reduce Russia’s military capabilities. The sanctions list also added eight individuals and 45 legal entities linked to the shadow fleet, dual-use goods, and the defense industry. Ukraine has already submitted proposals to the EU for the 19th sanctions package.