Newsletter of the main news 13.10/19.10

1️⃣ Frozen Russian Assets
 

The United Kingdom and Canada have joined the EU’s initiative to use frozen Russian central bank assets to provide loans to Ukraine, Bloomberg reports. The funds will support weapons procurement and economic stabilization. The UK currently holds over £25 billion in frozen assets, while the EU controls about €200 billion. Allies are finalizing a legal mechanism to mitigate risks and protect participants from potential lawsuits filed by Moscow.

Finland’s Court of Appeal has upheld the seizure of millions of euros in Russian state assets in favor of Naftogaz, according to Helsingin Sanomat. The decision is based on a Hague arbitration ruling ordering Russia to pay more than €5 billion in compensation for losses from the occupation of Crimea. As Moscow refused to comply, Naftogaz is pursuing asset seizures across several jurisdictions, including Finland and Austria.

The United States sold the superyacht Amadea, confiscated from sanctioned oligarch Suleiman Kerimov, Business Insider reports. The vessel, valued at roughly $230 million, was purchased at a closed auction. Its maintenance cost U.S. taxpayers around $1 million per month. Amadea was seized in 2022 in Fiji as part of the KleptoCapture operation targeting Russian oligarchs’ assets.

According to POLITICO, the European Commission plans to extract an additional €25 billion from frozen Russian assets held in private EU accounts, supplementing the €140 billion blocked in Euroclear. The funds would finance loans to Ukraine for defense and budgetary needs. The proposal will be discussed ahead of next week’s EU summit.

As Financial Times notes, the Commission also proposed deploying the €140 billion in frozen central bank assets to create a “Reparation Loan” for Ukraine — with part of the money to be used for arms procurement, including from U.S. manufacturers, to sustain Washington’s engagement. The remainder would support the defense industries of Ukraine and the EU.

Japan’s Ministry of Finance announced that the country will allocate the first proceeds from frozen Russian assets to Ukraine in 2026. The loan — ¥471.9 billion (about $3 billion) — will be provided under the G7’s Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism to fund Ukraine’s state budget, economic recovery, and reconstruction efforts.

2️⃣ International Sanctions Policy
 

China imposed sanctions on five U.S. subsidiaries of South Korean shipbuilding giant Hanwha Ocean, Bloomberg reports, triggering a downturn in global markets. Hanwha’s stock fell 6.2%, while Chinese shipbuilders surged. The move escalates the maritime power rivalry between Beijing and Washington, affecting a sector responsible for over 80% of global trade.

In Estonia, a crypto investor who transferred funds three times to support Russian forces was ordered to pay Ukrainians thirtyfold in restitution, ERR reports. After donating €54.60 to Russia, he agreed to contribute €1,638 to the Ukrainian Cultural Center in Tallinn and perform 75 hours of community service. Failure to comply would reopen the criminal case.

The European Court of Human Rights (ECHR) ordered Russia to compensate more than 29,000 Georgian citizens for human rights violations after the 2008 war, citing systematic abuses including torture, illegal detention, and language restrictions. Georgia must establish a payment mechanism within 18 months. Despite Russia’s withdrawal from the Convention in 2022, cases predating that remain binding.

RFE/RL reports that Slovakia and Austria have delayed approval of the EU’s 19th sanctions package against Russia. Prime Minister Robert Fico demands debates on the impact of sanctions on energy prices and guarantees for Russian oil imports. Austria insists on lifting restrictions on associates of Oleg Deripaska to ease operations for Raiffeisen Bank in Russia.

Estonia also imposed sanctions on two Russian officials — prosecutor Lyudmila Balandina and judge Dmitry Gordeyev — for politically motivated prosecution of museum director Smorzhevsky-Smirnova. Foreign Minister Margus Tsahkna stated that this is a response to Russia’s ongoing repression and human rights abuses.

The United Kingdom introduced its toughest sanctions package yet against Russia, targeting 44 shadow-fleet vessels, four Chinese oil terminals, India’s Nayara Energy Limited, and eight gas tankers. The UK also banned imports of fuel refined from Russian oil in third countries and blacklisted companies from Thailand, Singapore, Turkey, and China supplying electronics for Russian drones and missiles.

According to Reuters, Austria eventually agreed to support the 19th EU sanctions package after weeks of negotiations, clearing the way for formal approval by EU foreign ministers in Luxembourg. Vienna had previously blocked the decision, demanding partial unfreezing of Russian assets to offset Raiffeisen Bank’s fines — a request rejected by other member states.

3️⃣ Sanctions Violations and Evasion

Russia has increased energy exports to Venezuela after new U.S. sanctions. Bloomberg reports that from March to October, Moscow shipped over 7 million barrels of ligroin used to dilute heavy crude oil — its first such shipments in six years. The trade helps Russia offload excess fuel stocks after losing European markets, while Venezuela prefers Russian ligroin for its lower price and higher quality compared to Iranian supplies.

Albania is emerging as a hub for illicit oil imports from Russia and Libya. Authorities discovered 600,000 liters of undeclared diesel in the Porto-Romano port, smuggled under cement labels. A BIRN investigation found the port repeatedly handled sanctioned oil, with about one-third of the region’s contraband shipments originating in Russia.

Ukraine’s Defense Intelligence (GUR) released a list of 139 ships and 142 captains involved in transporting sanctioned Russian oil and stolen Ukrainian grain. According to GUR, maritime exports from the Baltic and Black Sea regions generate billions in revenue that fund Russia’s war. The list includes shadow tankers, Iranian-owned vessels, and ships illegally entering occupied Ukrainian ports.

In Finland, a Russian student was sentenced to one year and two months of probation for violating EU sanctions, Yle reports. He admitted to smuggling drones, processors, laptops, and other dual-use equipment worth €140,000 to Russia. Police seized processors, a drone, and €740 in illicit proceeds during a raid.