Newsletter of the main news 07.09/13.09

1. Frozen Russian Assets

 

PACE has proposed a mechanism for transferring frozen Russian assets to Ukraine through the European Court of Human Rights (ECHR). The PACE Legal Affairs Committee considers that ECHR judgments in interstate cases brought by Ukraine against Russia could provide a legal basis for directing Russian assets toward compensation for damages caused by the war.

 

More than 120 Members of the European Parliament have called for the EU to revisit the use of frozen Russian assets. They propose establishing a mechanism to share legal risks among EU Member States and transferring the funds to Ukraine as a loan against future Russian reparations.

 

The EU Court of Justice has rejected Hungary’s challenge to the use of proceeds generated by frozen Russian assets. The Court dismissed Budapest’s request to annul the mechanism allowing proceeds from Russian Central Bank assets to be used to finance military assistance to Ukraine.

 

The EU is developing a mechanism for using frozen Russian assets aimed at addressing Belgium’s concerns. The initiative seeks to distribute the associated legal and financial risks among Member States rather than leaving them primarily with Belgium, where a significant share of the assets is held.

 

2. International Sanctions Policy

 

The EU is preparing its 22nd package of sanctions against Russia. According to Vladyslav Vlasiuk, the President of Ukraine’s Special Representative for Sanctions Policy, the new measures could target Russia’s military-industrial complex, trade, the financial sector and specific manufacturers. The package is expected to be presented in the autumn.

 

Canada has imposed sanctions on eight Russian individuals involved in the deportation of Ukrainian children. The list includes Russian officials, representatives of youth organisations and other individuals linked to the transfer of Ukrainian children from occupied territories to Russia.

 

The EU Court has upheld sanctions against Roman Abramovich. The Court rejected another legal challenge by the Russian businessman against his inclusion on the EU sanctions list, confirming the measures imposed on his assets.

 

The French government has warned CNews over plans to bring a Russian commentator back on air. The case concerns Kseniya Fedorova, former head of the French branch of RT, who was ordered to leave France in August over the dissemination of pro-Kremlin propaganda. French authorities stated that reinstating her could breach the measures imposed against her and potentially lead to criminal proceedings.

 

Latvia plans to introduce a 300% tariff on grain imports from Russia and Belarus. Riga aims to restrict the transit of such grain through its territory and strengthen checks on its origin, including amid concerns that agricultural products originating in occupied Ukrainian territories could enter the market.

 

Latvia may fully suspend passenger bus services to Russia and Belarus from 2027. The proposed changes would prohibit both regular and irregular international bus services to these countries, as well as transit through Latvia.

 

Germany’s AfD plans to use its victory in Saxony-Anhalt to push for the lifting of sanctions against Russia. AfD co-leader Tino Chrupalla said the party intends to use its representatives in the Bundesrat to pressure the federal government to change Germany’s sanctions policy.

 

Russia is closing Germany’s Consulate General in St Petersburg and Goethe-Institut offices. Moscow described the move as a reciprocal response to Berlin’s decision to shut down Russia’s cultural centre in Germany and close a German consulate.

 

Russia’s Arctic LNG 2 operator is seeking around $1 billion from South Korean shipbuilder Hanwha Ocean. The legal dispute is linked to the termination of contracts for the construction of three LNG carriers following Russia’s full-scale invasion of Ukraine and the subsequent imposition of sanctions.

 

International sports federations continue to review restrictions on Russian athletes. UEFA has provisionally allocated four potential places for Russian clubs in European competitions for the 2027/28 season should the current suspension be lifted.

 

World Aquatics is requiring tournament organisers to guarantee the possibility of participation for Russian and Belarusian athletes.

 

FIDE has barred Russia from voting in the upcoming presidential election. The Russian Chess Federation remains suspended until 2029 over activities involving occupied Ukrainian territories.

 

The ISU has rejected Kamila Valieva’s appeal against the withdrawal of her neutral status. The decision also affects other Russian figure skaters, who may challenge it before the Court of Arbitration for Sport (CAS).

 

YouTube has blocked another 31 channels belonging to Russian artists and propagandists in Ukraine. The affected channels include those of Philip Kirkorov, Grigory Leps, Sergey Lazarev and Valeriya, among others who support Russia’s war and are subject to Ukrainian sanctions.

 

3. Sanctions Violations and Evasion

 

The EU is proposing to give the European Public Prosecutor’s Office (EPPO) a greater role in investigating sanctions violations. EU High Representative Kaja Kallas has proposed granting EPPO powers to investigate companies and individuals that help Russia evade sanctions or engage in prohibited financial transactions.

 

China may have supplied Russia with tens of tonnes of materials used in the production of attack drones. Documents obtained by journalists indicate that 46 tonnes of polyacrylonitrile were supplied to a company in Tatarstan linked to Shahed-type drone production. The material can be used to manufacture carbon fibre.

 

Russia is increasing production at Arctic LNG 2 as its shadow fleet expands. Gas production at the project nearly doubled year-on-year in July-August, while the number of vessels with opaque ownership structures increased to at least 20.

 

Russia is seeking to lease passenger aircraft from Vietnam amid Western sanctions. Moscow has proposed providing the aircraft to Russian airlines under wet-lease arrangements, including crews and maintenance services.

 

Several foreign airlines continue to operate flights to Russia despite sanctions. These include Turkish Airlines, Pegasus and Air Serbia, as well as carriers from the Middle East, Central Asia, the Caucasus and Asia.

 

Ukraine’s military intelligence has identified 155 Russian companies manufacturing components for weapons. Nearly half of the companies belonging to the Roselectronics holding are not currently subject to sanctions by Ukraine’s partner countries. Ukrainian intelligence has stressed the need for tighter controls on the supply of components through intermediaries.

 

4. Ukraine’s Sanctions Policy

 

Ukraine has imposed sanctions on 20 vessels linked to Russia’s shadow fleet, as well as Rostec enterprises and Russian propagandists. The measures also target 29 Russian individuals and 29 companies connected to the production of missiles, drones, electronics and other equipment for Russia’s military-industrial complex.

 

The Register of Damage has opened the final three claim categories for businesses. As of 10 September, legal entities can submit claims for business relocation costs, other economic losses and humanitarian expenses. Applications are submitted through Ukraine’s Diia digital government portal.

 

The International Register of Damage has added new categories of claims. The mechanism is expanding to document costs and losses caused by Russia’s aggression, including those related to humanitarian needs and the demining of territories.