Newsletter of the main new 14.07/20.07

All news

Date

20 Jul 2025

1️⃣ Frozen Russian Assets

A Helsinki court upheld the seizure of Russian state property in Finland worth over €40 million — including cultural and administrative buildings such as the Russian Center for Science and Culture. The ruling was issued at the request of Naftogaz, which is seeking €4 billion in compensation based on a Hague arbitration decision for damages caused by Russia's aggression in Crimea. The court rejected Russia's arguments about sovereign immunity, deeming the seizure lawful.

Euroclear has criticized the EU’s plans to invest profits from frozen assets. CEO Valérie Urbain warned that shifting from secure deposits to risky instruments could threaten financial stability and amount to de facto expropriation. She emphasized that Euroclear will not assume responsibility for any future compensations to Russia and called for a separate risk coverage mechanism.

Belgium, France, Italy, and Germany remain the strongest opponents of confiscating Russian assets in Europe, said Deputy Head of the Presidential Office Iryna Mudra. These assets, totaling around $300 billion, are primarily central bank funds held in Euroclear, Clearstream, and national central banks. European countries fear setting a precedent that could endanger their own assets. Ukraine proposes creating a fund to manage these assets and compensate for war damages, now estimated at $586 billion and potentially reaching one trillion. Other funding options include special duties on trade with Russia.

2️⃣ International Sanctions Policy

The EU imposed sanctions on pro-Russian politicians and organizations in Moldova linked to oligarch Ilan Shor. The restrictions target seven individuals and three entities, including the “Victory” political bloc, A7 company, and a cultural-educational center. Sanctions were introduced over attempts to manipulate elections and an EU membership referendum, political bribery, and disinformation. The sanctions list now includes 23 individuals and five organizations.

The EU also expanded sanctions on Russia and Iran for human rights violations and transnational repression. New targets include Russian judges involved in the sentencing of activist Oleksii Horinov for anti-war speech, eight Iranians, and one organization — members of the “Zindashti” criminal network and Quds Force militants responsible for killing dissidents and journalists. Measures include asset freezes and EU travel bans.

Further EU sanctions hit Russia for destabilizing activity in Ukraine and Europe. The list includes the state broadcasting network RTRS, an electronic warfare unit, propaganda outlets linked to Prigozhin and Dugin, and IT company Tigerweb. Sanctions now apply to 47 individuals and 15 entities — with frozen assets, EU entry bans, and financial restrictions.

The UK unveiled a new sanctions package against Russia, targeting four individuals, six companies, and 20 ships — mostly oil tankers and electronics suppliers. The UK government says these actors threaten Ukraine’s sovereignty or profit from cooperation with the Russian regime. Since 2022, the UK has sanctioned over 2,300 individuals, companies, and vessels.

On July 18, the EU approved its 18th sanctions package against Russia, after delays from Slovakia and Malta. EU foreign policy chief Kaja Kallas called it one of the toughest yet: it includes restrictions on over 100 “shadow fleet” vessels, a new oil price cap, sanctions on non-Russian banks (including Chinese ones), and measures against companies aiding the Russian military-industrial complex. For the first time, the package targets a ship registry and a Rosneft refinery in India, as well as ideological influence on Ukrainian children.

The EU has also begun drafting its 19th sanctions package. Estonian Foreign Minister Margus Tsahkna stated that the EU will not settle for “half-measures” and that each step signals solidarity with Ukraine and accountability for Russia.

Additionally, the EU has for the first time imposed sanctions on Chinese banks for aiding Russia. The Suifenhe and Heihe rural commercial banks near the border with Russia are now sanctioned. China has strongly protested, likely securing a review of the sanctions in six months. This move marks a new phase of pressure on Beijing, accused of supporting Russia's war machine. The issue will be addressed at the EU–China summit on July 24.

3️⃣ Sanctions Violations & Evasion

In the US, Interactive Brokers LLC agreed to pay over $11.8 million to settle potential civil liability for multiple sanctions violations. According to OFAC, the firm provided financial services to individuals from sanctioned jurisdictions such as Iran, Cuba, Syria, Crimea, and also processed transactions involving the Chinese military-industrial complex, Russia, Venezuela, and persons sanctioned under the Global Magnitsky Act. OFAC emphasized that IB voluntarily disclosed the violations and cooperated with the investigation.

Greece is investigating a potential import of Russian birch plywood in violation of sanctions. NGO Earthsight reported the issue to Greek authorities in January, citing a shipment from Tianma Lvjian — a company allegedly laundering Russian-origin products. Customs officials have since detained several batches and are investigating further.

Spain is also probing potential sanctions violations. The Ministry for Ecological Transition is reviewing a Basque company suspected of importing 54 shipments of Russian birch plywood via China. Details remain confidential.

German customs authorities are investigating a car dealer accused of exporting luxury vehicles to Russia despite EU sanctions. Valued at over €3.4 million, the cars were allegedly rerouted via third countries but ended up registered in Russia. Following a tip from a manufacturer and the financial intelligence unit in 2024, officials uncovered the scheme and conducted raids. Cash and documents were seized, and the investigation continues under the Hanover prosecutor’s office.

Russian universities have launched educational programs on countering international sanctions. The Higher School of Economics has introduced a two-year master’s in “anti-sanctions compliance,” training students to identify sanction-related risks. Tuition is $6,280 annually, with no state-funded seats. A short-term certification course is also available for 84,000 rubles. The programs are tailored to help Russia adapt its economy to long-term isolation.

Russia has denounced EU sanctions against India’s Nayara Energy refinery — 49% owned by Rosneft — calling them “illegal”. The company claims it reinvests all profits in India without paying dividends. India’s foreign ministry responded that it does not recognize unilateral EU sanctions and views energy as a matter of national security.

4️⃣ Ukrainian Sanctions Policy

Ukraine has listed for privatization a confiscated plant formerly owned by Russian senator Sergey Kalashnikov — Motordetal-Konotop — with a starting price of UAH 268 million. It is one of Europe’s largest manufacturers of cylinder liners for engines and supplies brands like Scania, MAN, and Mercedes-Benz. Proceeds will go to the state budget and the Fund for Eliminating the Consequences of Armed Aggression.