Newsletter of the main news 20.10/26.10

1️⃣ Frozen Russian Assets

 

The United States has not yet supported the EU’s initiative for a “reparations loan” to Ukraine worth €140 billion, Bloomberg reports. During IMF meetings, Washington cited market stability risks and avoided commitments. EU officials expressed disappointment, as the plan to use frozen Russian assets is already in its final stage and awaits approval by EU leaders this week.

 

Belgian Prime Minister Bart De Wever outlined three conditions for supporting the “reparations loan” — shared legal liability, guarantees in case of compensation claims, and participation from all countries holding Russian assets. He warned Belgium could block the decision without these safeguards, citing countermeasure risks from Russia and the absence of a clear legal basis.

 

Danish Prime Minister Mette Frederiksen called the idea of using frozen Russian assets to support Ukraine “brilliant,” stressing that Russia must pay for the destruction of Ukrainian infrastructure and for weapons for Ukraine’s defense. Denmark supports creating a “credit line” from these assets to finance Ukraine’s needs in 2026–2027 without burdening EU budgets.

 

Dutch Prime Minister Dick Schoof also backed the use of frozen Russian assets, emphasizing the need for a coordinated risk-sharing mechanism between the EU and G7 countries. He said the funds should go toward Ukraine’s immediate needs and reconstruction, stressing the importance of a technically feasible and collective approach.

 

Swedish Prime Minister Ulf Kristersson announced that his government is considering using frozen Russian assets to fund Gripen fighter jets for Ukraine. He underlined that Europe cannot allow these funds to return to Russia and expressed hope for a unified EU stance despite Belgium’s reservations.

 

The EU confirmed that it will finance Ukraine through 2027 using profits generated from frozen Russian assets. President Volodymyr Zelenskyy thanked the EU for this signal of support, while European Council President António Costa emphasized that these funds will serve as the foundation for Ukraine’s financial needs in 2026–2027.

 

At the same time, the EU has not reached a final decision on the direct use of frozen Russian assets for Ukraine. The summit’s conclusions state that the assets will remain blocked until Russia ends its aggression and compensates the damages. EU leaders instructed the European Commission to prepare proposals for further financial support and to revisit the issue at the next summit.

 

UK Prime Minister Keir Starmer urged allies to accelerate the unfreezing of Russian assets to fund Ukraine’s defense, noting that London is ready to cooperate with the EU to implement this mechanism as quickly as possible.

 

Slovak Prime Minister Robert Fico opposed the EU’s plan to use frozen Russian assets for Ukraine, saying Slovakia would not join any financial schemes related to Kyiv’s military expenditures and warning of potential international legal disputes. He added that Bratislava will provide only humanitarian and technical — not military — assistance to Ukraine.

 

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2️⃣ International Sanctions Policy

Twenty-five EU member states will join a special tribunal on Russia’s crime of aggression against Ukraine, to be based in The Hague. Estonian Prime Minister Kaja Kallas stressed that Putin’s regime must be held accountable. The European Commission is advancing a €140 billion “reparations loan” plan using frozen Russian assets and is preparing the EU’s 20th sanctions package. The bloc also plans to tighten control over Russia’s “shadow fleet.”

 

The EU Council approved a gradual ban on Russian gas imports by 2028, covering both pipeline and liquefied gas. The ban will take effect on 1 January 2026, with transition periods until June 2026 for short-term contracts and January 2028 for long-term ones. Hungary and Slovakia opposed the decision, but it passed by qualified majority.

 

The United States imposed sanctions on Rosneft, Lukoil, and 34 of their subsidiaries, the Treasury Department announced, citing Russia’s refusal to end the war. Treasury Secretary Scott Bessent called the firms “financial pillars of the Kremlin’s war machine” and urged allies to follow suit. The European Commission welcomed the move as a sign of joint Western pressure on Moscow.

 

The EU formally adopted its 19th sanctions package against Russia, which includes a ban on LNG imports, measures targeting Rosneft, Lukoil, and 117 “shadow fleet” tankers, restrictions on five banks and the crypto sector, and new export bans on technology and industrial goods. It also limits Russian diplomats’ movement and sanctions those involved in abducting Ukrainian children.

 

The EU sanctioned the rector of a Russian university that teaches how to circumvent sanctions. An EU Commission official quipped that this would let him “share personal experience” with students. The university’s program trains participants to “operate under sanctions” and “manage sanction risks” based on Russian and foreign corporate case studies.

 

EU officials are discussing possible exemptions or temporary licenses for Lukoil assets in Europe following U.S. sanctions, fearing disruptions at refineries in Romania, Bulgaria, and the Netherlands, as well as at hundreds of gas stations across the bloc. Talks with Washington aim to ensure a controlled withdrawal of the company from the European market without energy instability.

 

U.S. Treasury Secretary Scott Bessent told CBS News that Russian envoy Kirill Dmitriev is a “Kremlin propagandist” and dismissed claims that oil sanctions would harm the U.S. economy. He said restrictions on Rosneft and Lukoil would force Putin to negotiate, as Russia’s oil revenues have already dropped 20% and may fall by another 30%.

 

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3️⃣ Sanctions Violations and Evasion

Russia delivered crude oil for processing to Georgia for the first time — the tanker Kayseri carried over 105,000 tons of Siberian Light from Novorossiysk to the Kulevi terminal, Reuters reports. The refinery began operations in October with an annual capacity of 1.2 million tons and plans to expand to 4 million tons by 2028, despite the absence of diplomatic relations between the two countries since 2008.

 

According to The Washington Post, Russia spent years acquiring Western technology to protect its nuclear submarines. Through front companies, Moscow obtained hydroacoustic systems, underwater drones, and sensors for its “Harmony” surveillance network in the Arctic. The scheme involved Cyprus-registered Mostrello Commercial Ltd., linked to Russia’s Advanced Technologies Directorate, which has long cooperated with the FSB, SVR, and GRU.

 

Hungarian Prime Minister Viktor Orbán said his government is working on ways to bypass U.S. sanctions against Rosneft and Lukoil. He discussed the issue with MOL, whose refineries depend on Russian crude via the Druzhba pipeline. Orbán’s remarks come amid tensions with Poland over Budapest’s stance on importing Russian energy.

 

Serbia’s only oil refinery, NIS in Pančevo, may halt operations due to U.S. sanctions against its Russian owners, Reuters reports. President Aleksandar Vučić warned that without new supplies the plant will shut down after November 1, though current reserves should last until year’s end. Belgrade and Moscow are seeking ways to circumvent the restrictions to avoid an energy crisis.

 

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4️⃣ Ukraine’s Sanctions Policy

The State Property Fund of Ukraine announced the sale of Atlantis-Pak Ukraine, a company confiscated from Russian-Greek oligarch Ivan Savvidis, with a starting price of ₴37.88 million. The company specializes in wholesale trade of food and beverages. The buyer must settle debts and retain employees. Earlier, the Fund sold Savvidis’s other asset — PentoPak PJSC, one of Ukraine’s largest packaging manufacturers.

 

The High Anti-Corruption Court (HACC) confiscated over ₴400 million in assets belonging to former Interior Minister Vitaliy Zakharchenko, according to the State Bureau of Investigation. The assets include apartments in Kyiv, corporate rights, and bank accounts. The measure aims to prevent use of these assets by individuals posing a threat to national security. Zakharchenko, wanted since 2014, is accused of treason and crimes against Euromaidan protesters.