Newsletter of the main news 17.11/23.11

1️⃣ Frozen Russian Assets

France has outlined the conditions under which the EU may use Russia’s frozen assets to support Ukraine. Paris insists that the mechanism must comply with international law and cannot involve confiscation, only an advance on future reparations. It also requires financial guarantees from the EU budget and G7 states, with funds directed toward procurement in the European defence industry in cooperation with Ukraine.

The European Commission has proposed that EU member states provide up to €90 billion in grants to Ukraine in 2026–2027 if the “reparations loan” mechanism based on frozen Russian assets fails to materialize. Funding would come through voluntary bilateral contributions from member states—without joint EU liabilities—but with a direct impact on national budgets. The Commission notes that contributions could be phased starting in 2026, proportionate to each country’s GNI.

Russia has stated that any confiscation of its frozen assets in the EU would constitute a violation of its “sovereign rights” and has begun preparing a response plan. Moscow threatens lawsuits, the seizure of Euroclear’s and Belgium’s property, and the use of assets belonging to “unfriendly states’” residents as compensation. The State Duma has instructed the government and the Central Bank to prepare actions in case the EU approves confiscation.

The EU has sharply criticized the U.S. “peace plan” proposing to use Russian frozen assets under American management and transfer “50% of the profits” to the United States, Politico reports. Officials in Brussels fear this could derail the final approval of the EU’s lending mechanism for Ukraine, stressing that Washington has no authority to unfreeze assets located in Europe.

2️⃣ International Sanctions Policy

Chevron is considering acquiring selected international assets of Lukoil, Reuters reports. After receiving authorization from the U.S. Treasury, the company joined other potential buyers competing for assets worth over $20 billion. Lukoil is selling parts of its foreign portfolio, including stakes in fields in Kazakhstan, Iraq, Mexico, Africa, and infrastructure in Europe and the United States.

Sweden has stated that since Russia’s full-scale invasion, the EU has imported €311 billion worth of goods from Russia—€124 billion more than it has provided to Ukraine in assistance. Foreign Minister Maria Malmer Stenergard called this “a disgrace” and urged stronger support for Ukraine and increased pressure on Russia, including through the use of frozen Russian assets.

The EU has imposed sanctions on Russian officials involved in the torture and deaths of Ukrainian prisoners of war in detention facilities in Russia’s Rostov region. Sanctions also target judges and officials responsible for politically motivated prosecutions, including cases involving journalists, activists, and associates of Alexei Navalny. The measures include asset freezes, bans on financial transactions, and travel restrictions.

3️⃣ Sanctions Violations and Evasion

The EU has appointed a coordinator to counter Russia’s “shadow fleet,” which transports Russian oil in violation of sanctions. The new role aims to improve information sharing and joint action among member states regarding old, uninsured vessels that frequently change names, registration, and flags. The issue will be a key topic at the EU Foreign Affairs Council on 20 November, alongside coordination with G7 partners.

A Latvian court has fined a company €10,500 and sentenced its representative to 100 hours of community service for providing tourist services in Crimea in violation of EU sanctions. A previous acquittal was overturned on appeal, and the case has moved to cassation. In Latvia, sanctions violations carry criminal or administrative liability.

In Finland, the Teboil fuel station network—owned by Lukoil—will shut down once fuel stocks run out, Reuters reports. The company operates 430 stations, about 20% of the market. Authorities say fuel supply is not at risk, as Teboil only distributes fuel produced by Neste. This is the first Lukoil-owned international asset to wind down operations due to sanctions.

Europol has strengthened efforts to counter sanctions evasion by launching a dedicated unit to identify criminal networks and illicit trade routes supporting Russia. The unit is already assisting investigations across the EU and, together with OLAF, is implementing the “Transporter” project to control vehicle exports to third countries that may re-export them to Russia or Belarus. These initiatives are part of the EMPACT platform.

In Germany, a former company director will stand trial for allegedly sending high-tech machinery to Russia in violation of sanctions—five units worth €1.7 million. Shipments were routed through third countries to conceal their destination. The suspect remains in custody while authorities assess the full scope of violations.

The EU is preparing new measures against Russia’s shadow fleet, Bloomberg reports. At the 20 November meeting of foreign ministers, member states are discussing enhanced cooperation with flag-registering countries and additional tools to stop tanker operations. Poland proposes new rules, including authorizing authorities to board vessels. The measures may be included in the 20th EU sanctions package.

The UK has uncovered an international money-laundering network linked to Russian sanctions evasion. Funds from drug and weapons trafficking were converted into cryptocurrency to finance criminals and Russian intelligence operatives. The network is connected to operations through the sanctioned Keremet Bank, which supported Russian defence companies. As part of Operation “Stabilisation,” 128 individuals were arrested, and the UK seized over £25 million.

British politician Nathan Gill received a 10-year prison sentence for accepting bribes from pro-Russian actors, including Oleg Voloshyn and networks linked to Viktor Medvedchuk, in exchange for promoting Kremlin narratives and influencing other politicians. Gill pleaded guilty to eight charges. This is the first case of its kind in the UK, and police continue investigating a broader foreign-influence network.

4️⃣ Ukraine’s Sanctions Policy

The High Anti-Corruption Court (HACC) has transferred 52.76% of shares in JSC “Kirovohrad Mining Administration” to the state. The stake belonged to Russian businessman Serhii Kabargin, co-owner of Titan-2, a strategic partner of Rosatom. The company extracts secondary kaolin from the Oboznivske deposit. The Ministry of Justice acted based on information provided by Ukraine’s Defence Intelligence and the Security Service (SBU).