Newsletter of the main news 06.10/12.10

1️⃣ Frozen Russian Assets

The Compensation Commission that will decide on payments for damages caused by Russia’s war against Ukraine is expected to start operating in 2027, according to Deputy Head of the Office of the President Iryna Mudra. The Register of Damage in The Hague is already functioning, and a convention to establish the commission will be signed on December 16. Throughout 2026, member states must complete internal ratification procedures, after which the formation of a Compensation Fund will begin, with funding sources still under discussion.

Belgian Prime Minister Bart De Wever outlined “red lines” on the use of frozen Russian assets, Politico reports. Belgium, home to the Euroclear clearing system holding a significant share of frozen Russian assets, demands EU guarantees that member states will share legal and financial risks, avoid measures that may be interpreted as confiscation, and ensure compensation if Russian assets must be returned. A decision is expected at the EU summit on October 23.

Rheinmetall will supply Ukraine with air defence systems worth hundreds of millions of euros, financed by one EU member state using proceeds from frozen Russian assets. The systems will be produced and integrated by Rheinmetall Italia at the company’s facility in Rome. The Skyranger 35 is a mobile anti-aircraft system mounted on a Leopard 1 chassis with a 35 mm cannon designed to destroy aircraft, helicopters and drones at a range of up to 4 km.

2️⃣ International Sanctions Policy

Lithuania will not lift sanctions against Russia and Belarus until Ukraine’s territorial integrity is fully restored and damages are compensated, Prime Minister Inga Ruginienė stated in Kyiv. She reaffirmed support for a Special Tribunal, the Register of Damage and the use of frozen Russian assets to support Ukraine.

The EU plans to restrict the movement of Russian diplomats over espionage and sabotage risks in NATO countries, Financial Times reports. The initiative, backed by Czechia, Latvia and Hungary, is included in the new sanctions package. However, Austria is delaying the decision, demanding exemptions related to assets of sanctioned oligarch Oleg Deripaska.

By 2030, Russia risks losing nearly half of its civilian aircraft fleet due to sanctions that block access to foreign maintenance and spare parts. Over 300 aircraft and 200 helicopters are expected to be grounded, while production of new aircraft significantly lags behind plans. Due to shortages, Aeroflot is dismantling aircraft for parts, and ICAO has accused Russia of destabilising global air navigation.

The EU plans to adopt legislation on October 20 to phase out Russian oil and gas, Reuters reports. The law has majority support and requires only a qualified majority. Hungary and Slovakia will be required to end Russian oil imports by 2028. Discussions continue on mechanisms to verify the origin of LNG imports to prevent disguised Russian supply.

68% of Americans support continued military aid to Ukraine and stronger sanctions against Russia if the Kremlin refuses negotiations, according to new polling. 77% back additional U.S. economic sanctions and 57% support penalties against third countries that buy Russian energy. 79% believe Europe should end dependence on Russian oil and gas in favour of U.S. supplies.

The EU failed once again to approve its 19th sanctions package against Russia due to objections from Austria and Slovakia, Euobserver reports. Austria demands a mechanism to unfreeze €2 billion in Russian assets for Raiffeisen Bank compensation, while Slovakia cited concerns over the impact of EU climate policy. A decision is expected by the EU summit on October 23.

The European Parliament condemned Russia’s hybrid provocations and labelled its actions as “state terrorism” in a resolution backed by 469 votes. MEPs called for stronger defence cooperation with Ukraine, tougher sanctions on Russia and its enablers (Belarus, Iran, North Korea), and restrictions against Chinese companies supplying dual-use goods.

U.S. sanctions against Serbian energy company NIS, partially owned by Gazprom Neft, came into full force after temporary waivers expired. NIS supplies around 80% of Serbia’s fuel market. President Aleksandar Vučić called the sanctions “a serious blow” and warned they would affect Serbia’s entire economy.

3️⃣ Sanctions Violations and Evasion
 

The EU is considering sanctions against the A7A5 stablecoin linked to Moldovan oligarch Ilan Shor and Russia’s Promsvyazbank, Bloomberg reports. The European Commission proposes banning EU persons from any transactions with the cryptocurrency and targeting banks in Russia, Belarus and Central Asia involved in sanctions evasion.

The EU plans to sanction companies that provided false flags to Russian “shadow fleet” oil tankers, Bloomberg reports. At least eight vessels under sanctions were registered with fraudulent documentation under the flags of Aruba, Curaçao and Sint Maarten. The measures will be included in the EU’s 19th sanctions package.

Poland has imposed sanctions on Belarusian nationals Andrei Karpovich, Volodymyr Liashuk and Veronika Pental, as well as companies STEELTRADE and OMNI GRP, for supplying metal products to Russia through intermediaries in China, Kazakhstan and Turkey. Over 200 shipments were re-exported to Russia for military use, according to Poland’s Ministry of Economy.
 

4️⃣ Ukraine’s Sanctions Policy
 

The Appeals Chamber of the High Anti-Corruption Court of Ukraine upheld the seizure of assets belonging to former Ukrainian official Volodymyr Oliinyk. The state confiscated six real estate assets in Cherkasy, one in Kyiv region, a motor vessel and shares in ESP Technologies LLC.

Ukraine has nationalised assets worth over ₴95 million linked to a Russian senator and the Ukrainian company Motor-Detail Konotop LLC, according to the Prosecutor General’s Office. The investigation revealed the company supplied components used in Russia’s defence industry.

Ukraine has synchronized sanctions with Japan against individuals and entities supporting Russia’s war. The list includes ALROSA CEO Pavel Marinychev, Tula Cartridge Plant director Sergei Lukin and North Korean KOMID representative Rim Yong Hyok, as well as Russian defence contractors “Staut,” the Center for Innovative Technologies and PMC “Convoy,” funded by oligarch Arkady Rotenberg.