Newsletter of the main news 14.09/20.09

1. Frozen Russian Assets

The Central Bank of Russia has challenged EU measures concerning frozen assets. The Russian central bank filed a lawsuit with the General Court of the EU, arguing that the sanctions interfere with its legal dispute with Euroclear. The bank may also seek to seize Euroclear’s assets in jurisdictions considered friendly to Russia.

A Belgian court ruled that the Treasury lacked the legal authority to reject a request to unfreeze Russian assets. Belgium’s Council of State found that the Treasury’s General Administrator did not have the necessary powers to decide whether the assets should be released. However, the ruling does not automatically mean that the frozen funds will be unblocked.

Sergey Lavrov said that Russia expects to recover its assets frozen in the EU. The Russian foreign minister said Moscow would seek the return of its foreign exchange and gold reserves frozen at Euroclear and criticised EU plans to use the assets to support Ukraine.

2. International Sanctions Policy

The US President has signed a bill imposing sanctions on Russia. The legislation, sponsored by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal, provides for tariffs on countries purchasing Russian energy resources. The bill was signed on 18 September after being passed by the Senate and the House of Representatives.

The US House of Representatives passed the Graham-Blumenthal bill imposing new sanctions on Russia. The legislation was approved by 262 votes to 159 and proposes tariffs of up to 100% on the five largest buyers of Russian energy resources.

The EU extended its personal sanctions against Russia for another week. Restrictions covering more than 3,000 individuals and entities, which were due to expire on 15 September, were temporarily extended to 22 September while EU member states continued consultations on their further extension.

The European Commission announced plans to strengthen sanctions pressure on Russia. European Commission President Ursula von der Leyen said the EU would tighten sanctions and stressed that existing restrictions must be properly enforced and loopholes closed.

The European Parliament called for sanctions against those involved in Russian hybrid operations. MEPs proposed extending restrictions to financial and technical intermediaries facilitating Russian disinformation, cyberattacks, election interference and sanctions evasion.

The US is to lift sanctions on two Belarusian state-owned companies. The decision concerning Lakokraska and Bellesbumprom was announced following the release of 25 political prisoners by the Belarusian authorities and is part of Washington’s efforts to improve relations with Minsk.

Latvia has blacklisted Russian oligarch Umar Kremlev and ice hockey player Alexander Ovechkin. Both have been banned from entering Latvia for an indefinite period.

The International Biathlon Union will not lift sanctions against Russian and Belarusian athletes. Russia and Belarus will remain excluded from international biathlon competitions during the 2026/27 season, including the World Cup and IBU Cup, as well as the Olympic Games.

The International Hockey Federation has lifted all sanctions against Russia. Russian athletes and teams will be allowed to compete under the national flag and with the national anthem and other state symbols. Russia will also be allowed to host international field hockey tournaments.

Lithuania will block 12 websites broadcasting programmes from the Russian state-funded broadcaster Sputnik. Lithuanian authorities identified the websites through which users could access sanctioned Sputnik content and ordered internet providers to block them.

Luxembourg may demand that sanctions against Mikhail Fridman be lifted if the EU makes concessions regarding Alisher Usmanov. According to the Financial Times, Luxembourg supported extending EU personal sanctions against Russia but indicated that if Usmanov were removed from the sanctions list, it would demand that Fridman be removed as well.

3. Sanctions Violations and Evasion

Raiffeisen Bank’s Russian subsidiary has been accused of facilitating sanctions evasion. Researchers from Grizzly Research alleged that Raiffeisenbank Russia may have been used as a channel for foreign trade transactions involving sanctioned goods. Raiffeisen Bank International rejected the allegations and said the report contains factual errors and misleading claims.

Finland is investigating a suspected €5.9 million breach of sanctions against Russia. According to customs authorities, companies in eastern Finland declared shipments to Kazakhstan and Turkey, while the goods – including hydraulic pumps, motors and valves – may have actually been exported to Russia.

Luxembourg is to launch an investigation into four former Gazprombank executives. The Luxembourg Ministry of Finance asked the prosecutor’s office and financial regulator to investigate possible sanctions violations and insider trading involving Gazprom bonds in 2022. The alleged scheme may have generated more than €9 million in illegal profits.

The Russian defence industry is using US and Finnish components for sniper ammunition. According to an investigation, the Russian Promtechnologia factory uses American Peterson cartridge cases and Hornady bullets, as well as Finnish Lapua bullets. Some Western components reportedly reach Russia through third countries.

Ukraine’s Main Intelligence Directorate has identified foreign equipment used to manufacture Geran UAVs in Russia. The equipment includes machinery from Chinese, German, Japanese, Swiss and Iranian manufacturers used at a production facility in Tatarstan. Ukrainian intelligence called on manufacturers to strengthen controls over end users and intermediaries.

Ukraine’s Main Intelligence Directorate has disclosed details of Russia’s largest radio-electronic holding company, KRET. The intelligence service identified 54 enterprises linked to the holding, 19 of which are not subject to sanctions imposed by any country in the sanctions coalition. The enterprises produce electronic warfare systems, navigation equipment and components used by Russia’s defence industry.