Newsletter of the main news 30.06/07.06

1️⃣ Frozen Russian Assets

Finland has signed an agreement with the European Commission to supply Ukraine with heavy ammunition worth €90 million, financed through revenues generated from frozen Russian assets via the European Peace Facility. The ammunition will be procured from Finnish manufacturers, simultaneously boosting Ukraine’s defense capabilities and supporting domestic employment. Finnish Defence Minister Antti Häkkänen emphasized that this is not only an effective example of asset utilization but also a clear demonstration of Finland’s steadfast support for Ukraine.

Ukraine has received an additional $1.7 billion from Canada derived from frozen Russian assets, as announced by Prime Minister Denys Shmyhal on 30 June. In total, Ukraine has secured approximately $17.6 billion this year through such mechanisms. “We insist on the full confiscation of Russian funds. This is not only a vital source for reconstruction, but also a matter of justice,” Shmyhal said.

The Paris Court of Appeal has upheld a 2018 arbitral ruling awarding Oschadbank more than $1.5 billion in compensation for losses incurred due to Russia’s annexation of Crimea. The court also ordered the Russian Federation to pay an additional €300,000 in legal fees. The ruling has already been recognized in France, enabling Oschadbank to freeze over €87 million in Russian assets within French jurisdiction. This marks the first such legal victory for a Ukrainian banking institution and sets a precedent for holding the aggressor state accountable under international law.

2️⃣ International Sanctions Policy

The European Union has unanimously extended its sectoral sanctions against Russia. The decision was formally adopted by all 27 member states on 30 June through a written procedure, following a political agreement reached at the 26 June summit. European Commission Vice-President Kaja Kallas stated, “Every sanction weakens Russia’s ability to wage war.”

The United States has imposed sanctions on the Russian company Aeza Group and its affiliated entities for involvement in cybercriminal activity. Based in St. Petersburg, Aeza Group provided hosting services to ransomware groups targeting critical infrastructure in the U.S. and allied countries. Sanctions were also applied to its leadership and to the company’s UK-based subsidiary, in coordination with the British government.

Meanwhile, the administration of Donald Trump has lifted sanctions on a number of Russian entities, including the state-owned arms exporter Rosoboronexport. According to The Moscow Times, the rollback also affects several Russian banks, companies, and individuals previously sanctioned over Syria, including former Kalmykia leader Kirsan Ilyumzhinov. The executive order maintains restrictions only for close affiliates of Bashar al-Assad, raising concerns over the potential easing of pressure on Russia’s defense sector.

Slovakia and Hungary have blocked the adoption of the EU’s 18th sanctions package against Russia following a meeting of EU ambassadors on 4 July. Slovakia opposed the package due to concerns over the RePowerEU initiative, which calls for a complete phase-out of Russian gas by 2028. Prime Minister Robert Fico warned of potential economic harm. Hungary also rejected the package but did not specify its conditions. Further discussions are postponed pending a European Commission delegation visit to Bratislava.

3️⃣ Sanctions Evasion and Violations

As of 1 July, Germany has introduced new regulations targeting Russia’s so-called "shadow fleet," requiring all tankers passing through its territorial waters to carry verified oil pollution insurance. This measure is expected to hinder vessels that circumvent sanctions through opaque insurance arrangements. According to the German Foreign Ministry, the move is part of broader European efforts to combat sanctions evasion and protect the Baltic Sea.

The EU continues to receive Russian-origin fuel despite sanctions. Between March and April 2025, Spanish ports received 123,000 tonnes of diesel fuel from Morocco—more than in the previous four years combined, according to El País. It is likely that Morocco imported Russian diesel and re-exported it under a different label. Spain has launched an investigation, though proving origin may prove difficult due to the fuel’s similarity with other sources.

Ukraine’s National Security and Defense Council (NSDC) has imposed sanctions on 60 companies involved in Russian cryptocurrency schemes that helped circumvent international restrictions. The sanctioned entities include major mining firms, crypto exchanges, and financial intermediaries based in Russia, the UAE, Cyprus, and Kazakhstan. Sanctions also target 73 individuals—executives and officials from the Russian Central Bank. According to President Zelenskyy, just one of the listed companies processed billions of dollars to support Russia’s military industry.

In Liechtenstein, approximately 800 “zombie trusts” linked to Russian assets have been identified in a dormant state, following the resignation of their trustees and directors due to the risk of U.S. secondary sanctions. These structures—holding billions in yachts, real estate, and cash—now pose a financial stability risk to the principality. A dedicated task force has been established, but legal constraints and the fear of further sanctions are complicating efforts to resolve the crisis.

4️⃣ Ukraine’s Sanctions Policy

A Ukrainian court has ordered the Russian Federation to pay ₴83.75 million to the Ukrainian company URD Ukrainian Roads for property losses sustained in the temporarily occupied town of Nova Kakhovka, Kherson region. In 2022, the company—owned by MP Serhiy Labaziuk—lost a mineral powder plant and 33 vehicles. The court declined to award an additional ₴291 million in lost profits due to insufficient evidence.