Newsletter of the main news 01.09/07.09

1️⃣ Frozen Russian Assets

German MPs visiting Kyiv voiced readiness to discuss using Russia’s frozen assets to support Ukraine. Around €210 billion of the Russian Central Bank’s reserves are blocked in the EU, mostly at Euroclear. While interest proceeds are already funding weapons for Ukraine, direct expropriation remains disputed due to legal risks.

 

Ukrainian energy company DTEK is seeking the seizure of Russian assets in Jerusalem — the Serhiyivske Podvirya hotel and Ma’alot parking lot — based on a Hague arbitration ruling granting $267 million in compensation for the confiscation of DTEK Krymenergo after the annexation of Crimea.

 

The UK allocated over £1 billion from frozen Russian assets to military aid for Ukraine, including ammunition, air defense missiles, drones, electronic warfare systems, vehicles, and repair equipment. This year London will provide £4.5 billion in total support, half funded directly from Russian assets.

 

Lithuania proposed two options for the EU: issuing Ukraine a loan backed by frozen Russian assets, or transferring them into a dedicated EU-managed fund. FM Kęstutis Budrys acknowledged legal risks but stressed that Russia’s aggression requires decisive countermeasures.

 

Belgium rejected the idea of transferring frozen Russian assets to Ukraine. FM Maxime Prévot argued that confiscating about €200 billion (mostly held at Euroclear) would undermine confidence in European financial markets and damage Belgium’s reputation as a financial hub.

 

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2️⃣ International Sanctions Policy

China’s Heihe Rural Commercial Bank, sanctioned under the EU’s 18th package, has stopped processing payments from Russia. Previously, Russian SMEs relied on it after larger Chinese banks ceased cooperation with Moscow. The ban on EU-related operations took effect on August 9.

 

Australia imposed sanctions on 14 Russians linked to the death of Alexei Navalny and support for the war. The list includes oligarchs, senior officials, and media managers such as Ilham Ragimov, Andrey Kozitsyn, Maksim Liksutov, and Ksenia Yudaeva. Measures include financial restrictions and travel bans.

 

The UK sanctioned eight Russians and three entities involved in the deportation and militarization of Ukrainian children. The list includes the Akhmat Kadyrov Foundation, its president Aimani Kadyrova, and groups indoctrinating children with “Russian patriotism.” Russia has already deported over 19,500 Ukrainian children, with ~6,000 sent to “re-education” camps.

 

Hungary and Slovakia are blocking the renewal of EU sanctions, pushing to remove six oligarchs from the blacklist, including Alisher Usmanov, Mikhail Fridman, Dmitry Mazepin, and Petr Aven. The regime, covering over 2,600 individuals and entities, must be unanimously renewed by September 15.

 

Russian businessman Mikhail Fridman appealed to Spain to support lifting EU sanctions against him, highlighting his role in the Dia supermarket chain, which provides 100,000 jobs and €6.8 billion in economic impact. He has backing from Hungary, Slovakia, and Luxembourg, while Latvia remains opposed.

 

The EU Council sanctioned Vadim Bulgakov and Oleksiy Pikin, heads of Russia’s Federal Penitentiary Service in Crimea, for systematic human rights violations against political prisoners. Measures include asset freezes, financial bans, and entry prohibitions.

 

U.S. President Donald Trump announced readiness to move to a “second stage” of sanctions against Russia, including possible measures directly targeting the Kremlin and Putin. He also hinted at tariffs against Russia’s trade partners, while emphasizing the need for concessions from both Moscow and Kyiv to end the war.

 

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3️⃣ Sanctions Violations and Evasion

The Chinese container ship Heng Yang 9 made four covert calls to Sevastopol since June, spoofing AIS signals to hide its route. From there, Russia resumed container exports, reportedly including goods from occupied Donbas, violating the IMO’s 2023 resolution against calls to Crimean ports.

 

Russia set up a transit hub in Armenia to bypass G7 and EU sanctions on Alrosa and export diamonds worth hundreds of millions to EU and U.S. markets. The scheme relies on the First Diamond Company, created in 2022, formally independent but closely tied to Alrosa.

 

A Spanish court confirmed the arrest of a Georgian national who orchestrated shipments of dual-use equipment to Russia via Turkey. Goods were re-labeled as Turkish exports before reaching Moscow. The case underscores Ankara’s role as a key hub in sanctions evasion networks.

 

A Swiss court authorized Jersey to access bank records in a case against Roman Abramovich, suspected of money laundering and possible sanctions violations. The probe focuses on his 1990s acquisition of Sibneft and related offshore structures. Abramovich is sanctioned by the EU, UK, and Canada, though he denies wrongdoing.

 

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4️⃣ Ukraine’s Sanctions Policy

Ukraine confiscated 1,592 Russian railcars worth about ₴2.2 billion. Parliament approved a presidential decree on compulsory seizure of assets belonging to sanctioned Russian entities. The wagons are already being used by Ukrzaliznytsia.

 

The High Anti-Corruption Court partially upheld a Justice Ministry lawsuit against ex-MP Volodymyr Oliynyk, now hiding in Russia and spreading Kremlin propaganda. The state seized his real estate in Cherkasy and Kyiv region, as well as a motor yacht. However, the court rejected confiscation of his wife’s corporate shares.