Newsletter of the main news 29.09/05.10

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Date

05 Oct 2025

1️⃣ Frozen Russian Assets

A group of U.S. Senators led by John Kennedy proposed a resolution calling for the confiscation of $300 billion in frozen Russian assets and their transfer to Ukraine for defense purposes. The senators believe that using these assets to support Ukraine will make the war too costly for Russia. The resolution also proposes the creation of an international fund to redistribute the assets, paying Ukraine monthly installments of $10 billion.

Denmark supports the idea of a "reparations loan" to Ukraine from frozen Russian assets, calling it a good way forward, although acknowledging the legal issues that need to be addressed. Prime Minister Mette Frederiksen stated that Europe needs to do more to support Ukraine, particularly in terms of funding.

Ukraine received an additional €4 billion in loans from the EU using frozen Russian assets, according to the Ministry of Finance of Ukraine. In total, within the ERA instrument, Ukraine has raised €14 billion out of the €18.1 billion planned by the end of 2025. The funds will be allocated for social, military expenses, and reconstruction.

Latvian Prime Minister Evika Siliņa stated that frozen Russian assets are "suitable for use" to support Ukraine. She emphasized that Latvia has long called for these assets to be directed towards helping Ukraine, which needs significant financial resources to strengthen its military and meet its defense needs.

Sweden and Finland are calling for the use of frozen Russian assets to assist Ukraine, noting that around €130 billion will be needed to support Ukraine by 2027. They propose using these assets as collateral for a loan to Ukraine, with repayment deferred until Russia pays reparations.

The Parliamentary Assembly of the Council of Europe supported the creation of an International Commission to review Ukraine's claims against Russia. This mechanism aims to hold Russia accountable and compensate for the damages caused to Ukraine, its citizens, and legal entities. PACE also called for the creation of an international compensation fund, particularly funded by frozen Russian assets.

The G7 countries are discussing the possibility of using frozen Russian assets to finance Ukraine's needs. The G7 finance ministers are considering various measures, including the possible "coordinated use" of frozen Russian assets to end the war. The EU's plan includes using around €140 billion as an interest-free loan to Ukraine.

Belgium set a condition for using frozen Russian assets to support Ukraine, demanding solid guarantees on the distribution of risks. Prime Minister Alexander De Croo, leading a group of countries skeptical about this step, emphasized the importance of legal issues, as more than half of the frozen funds are stored in the Brussels clearing company Euroclear. Belgium is willing to support the plan only after receiving satisfactory responses to its questions.

2️⃣ International Sanctions Policy

The European Union plans to ban imports of Russian liquefied natural gas, EU Commission President Ursula von der Leyen announced, as part of a strategy to increase economic pressure on Russia. Sanctions are expected to slow Russia’s GDP from 4.3% in 2024 to 0.9% in 2025. The EU is also considering replacing Russian LNG with American supplies.

Estonian football clubs are demanding an end to “solidarity payments” to Russian clubs and Russia’s expulsion from UEFA, citing continued support for Russian teams despite the aggression against Ukraine. Since the full-scale invasion, UEFA has allocated €10.8 million for these payments, while Russia continues to receive points in club coefficient rankings.

The EU may approve the 19th sanctions package in the coming weeks, which would include measures to halt Russian LNG supplies. However, as a top EU diplomat noted, there are still issues to resolve, including member states like Hungary and Slovakia that continue to import Russian oil, indirectly financing Russia’s military campaign. The EU is also considering sanctions against ports that facilitate Russian oil exports via the shadow fleet.

China has banned the use of “shadow vessels” for transporting oil from Iran and Russia, which have been used to circumvent international sanctions. Ports are now restricting tankers older than 31 years or with falsified registration numbers. At the same time, China, as the largest buyer of Iranian oil, seeks to protect its imports from the impact of sanctions.

G7 ministers have agreed to intensify pressure on Russian oil exports, targeting those who continue to buy Russian oil or help circumvent sanctions. They plan to implement trade measures, including tariffs and import-export bans, to block Russia’s revenue streams.

The Parliamentary Assembly of the Council of Europe adopted a resolution noting that Russia is not only waging war against Ukraine but also conducting hybrid attacks against Europe, including cyberattacks, disinformation, and election interference. PACE calls for international accountability for Russia’s crime of aggression against Ukraine and for strengthening sanctions against Russia and its allies, including expanding restrictions to financial officials, Russian banks, and the shadow fleet.

France detained the oil tanker Boracay, linked to Russia’s shadow fleet. The vessel, transporting Russian oil, was stopped after the crew failed to provide proof of nationality. Such tankers are used to evade sanctions, and Boracay had previously been sanctioned in 2024–2025. Two crew members were arrested, but the tanker later resumed its journey to the Suez Canal.

The European Union extended sanctions for one year against Russia for “hybrid actions,” targeting 47 individuals and 15 entities responsible for destabilizing activities abroad, including information interference, cyberattacks, and sabotage. Their assets are frozen, and EU citizens and companies are prohibited from providing them financial resources or entry.

The EU postponed the adoption of the 19th sanctions package due to Austria’s position, which sought the unfreezing of part of Russia’s assets to cover fines for Austria’s Raiffeisen Bank International. The package review was delayed to the following week after Austria’s amendment was rejected.

3️⃣ Sanctions Violations and Evasion

Latvian citizen Oleg Chistyakov pleaded guilty to conspiring to illegally export U.S. aviation technologies to Russia, bypassing U.S. export laws. Along with U.S. citizens, he continued supplying aviation equipment to Russia even after sanctions were imposed, using fake documents and third countries to conceal his actions. Chistyakov faces up to five years in prison, with the sentence to be announced in March 2026.

The stock market regulator CONSOB is investigating the activities of luxury goods manufacturer Brunello Cucinelli after reports about the company's stores operating in Russia caused a drop in its stock prices. Share sellers claimed that the stores continued selling banned goods, although the company denied these allegations.

Since 2022, four EU countries have spent €34.3 billion on Russian LNG imports, surpassing their bilateral aid to Ukraine, which totaled €21.2 billion, according to a Greenpeace report. These countries account for 95% of the EU’s Russian LNG imports. Despite a shift away from pipeline gas, LNG imports from Russia have increased, with routes through France, Spain, and Belgium complicating the tracking of final recipients.

Taiwan became the world's largest importer of Russian liquefied petroleum gas (LPG), importing $1.3 billion worth in the first half of 2025. This contradicts Taiwan’s official position, which joined sanctions against Russia and provided Ukraine with $50 million in aid. Private companies, particularly Formosa Petrochemical Corporation, have significantly increased their purchases of Russian LPG. Taiwan also violated sanctions on price caps as prices for LPG exceeded the set limit.

Chinese company Yangzijiang canceled the construction of tankers after suspicions of circumventing U.S. sanctions, reported Andriy Yermak, head of the Ukrainian President's Office. The agreement was signed by three subsidiaries, with the buyer suspected of using the company to evade U.S. restrictions.

The Latvian Security Service has filed a request with the prosecutor’s office regarding possible violations of EU sanctions against Russia. The investigation, initiated in January 2025, concerns individuals providing project management services to companies registered in Russia.

Russia has developed a plan to confiscate Western assets in response to the potential confiscation of its assets in the EU. In the event of the confiscation of Russian assets in the European Union, Moscow plans to take "symmetrical actions." Meanwhile, hundreds of Western companies continue to operate in Russia, including UniCredit, Raiffeisen Bank, PepsiCo, and Mondelez.

Russia is bypassing sanctions on Ukraine via Armenia by using import-export operations. According to analytical data, Armenia's foreign trade turnover increased 4.2 times over the past five years, coinciding with the intensification of international sanctions against Russia. Armenia imports precious metals and stones from Russia, which are mostly not consumed locally but are re-exported to third countries under the guise of domestic products.

At the TOKEN2049 conference, one of the largest events in the crypto industry, it was revealed that the company A7A5, linked to Russia's "shadow fleet," was one of the platinum sponsors. This company, which issues a stablecoin pegged to the ruble, was sanctioned by the U.S. and the UK for helping to bypass sanctions. A7A5 is actively used for cross-border payments, particularly by Russian companies.

Lithuanian citizen Stanislovas Tomas was fined €3,100 for receiving more than €7,000 from the Russian "Pravfond," which has been under EU sanctions since 2023. Tomas received the funds through the Panamanian bank Banistmo, despite not having an attorney status in Lithuania, although he represented former Lithuanian President Rolandas Paksas at the European Court of Human Rights.

As a result of Russia's attack on October 5, over 100,000 foreign components were used in drones deployed by Russian forces. Zelensky emphasized that these components were supplied from Western countries, including the U.S., China, Taiwan, the UK, Germany, Switzerland, and others.

4️⃣ Ukraine’s Sanctions Policy

The Ministry of Justice of Ukraine filed a lawsuit against Russian businessman Sergey Kabargin, co-owner of the holding company "Titan-2," demanding the confiscation of 52.76% of the shares in JSC "Kirovograd Mining Company." The holding is a strategic partner of "Rosatom" and is involved in the construction of energy blocks for Russian nuclear power plants.

The Ministry of Justice of Ukraine filed a lawsuit against former Minister of Internal Affairs under Yanukovych, Vitaliy Zakharchenko, demanding the confiscation of his property. The lawsuit concerns six real estate properties, including apartments in Kyiv, corporate rights, and money in bank accounts. Zakharchenko, who supported aggression against Ukraine after fleeing to Russia, is currently under sanctions lasting until 2034.

Volodymyr Zelensky instructed to continue sanctions, the term of which is expiring. During a meeting on sanctions policy, the president reported that five new sanctions decisions were introduced in September, targeting individuals and companies supporting Russian aggression. In total, 166 individuals and 127 entities were sanctioned.

The Ministry of Justice of Ukraine filed a lawsuit to confiscate the assets of former Kharkiv City Council deputy from the "Party of Regions," Konstantin Kevorkyan, for the benefit of the state. Kevorkyan, who is currently a columnist for the Russian propaganda outlet "Ukraine.ru" and spreads anti-Ukrainian propaganda, is involved in the case.

Volodymyr Zelensky signed several new sanctions decisions against Russia aimed at weakening Russia’s military-industrial complex and oil sector. The first decree imposes sanctions on 33 individuals and 27 legal entities, including drone and aviation engine manufacturers, as well as suppliers of technologies that bypass sanctions. The second decree extends sanctions imposed in 2023 on companies linked to Russian oligarchs. The third decree targets companies financing the war and attempting to infiltrate Ukraine's financial system.