Newsletter of the main news 17.08/23.08

1. Frozen Russian Assets

Belgium remains the main obstacle to using frozen Russian assets for Ukraine’s benefit. Brussels is concerned about the legal and financial risks associated with assuming liability for assets that are predominantly held through the Belgian-based Euroclear system.

2. International Sanctions Policy

The United States has extended until 19 September the deadline for transactions related to the sale or transfer of Lukoil’s foreign assets. The extended OFAC licence gives potential buyers additional time to complete negotiations, although any transaction will require separate approval from U.S. authorities.

Russian assets belonging to Nestlé are at risk of being placed under temporary Russian state administration. A Russian company has asked Vladimir Putin to take control of five Nestlé entities, potentially putting the company’s assets in Russia at risk of losing effective corporate control.

Germany is considering the closure of the “Russian House” in Berlin amid allegations that the institution is being used for Russian propaganda and intelligence activities. The German government is reviewing the legal basis for its operations against the backdrop of growing Russian hybrid activity.

Australia is facing criticism over what are described as insufficiently stringent sanctions that allow Russia to continue generating significant revenues from oil exports. Gaps in the country’s restrictions and enforcement mechanisms leave room for Russian crude to remain on international markets.

World Triathlon has lifted all restrictions on Russian athletes. Russian competitors will be allowed to participate under their national flag and with national symbols, marking another step toward the easing of international sporting restrictions.

The International Biathlon Union (IBU) will not allow Russian athletes to compete in international competitions during the 2026/27 season. The decision shows that while Russian athletes are gradually returning to some sports, restrictions remain in place in biathlon.

Russian technology company VK has filed a lawsuit against Apple in a Moscow arbitration court after its apps were removed from the App Store. VK is seeking the restoration of access to its services and compensation for the consequences of their removal, which Apple attributed to its need to comply with sanctions requirements.

Latvia’s Prime Minister has criticised the decision not to impose an entry ban on Russian military personnel. He argued that, on security grounds, Latvia should restrict entry for members of Russia’s armed and security forces.

3. Sanctions Violations and Circumvention

Latvia has begun publishing a list of companies that continue to trade with Russia and Belarus. The initial list includes around 170 businesses and is expected to be updated monthly, increasing transparency around companies maintaining commercial ties with the two countries.

A woman was detained at the Estonian-Russian border for carrying a frying pan subject to sanctions restrictions. The case highlights the broad range of goods that can fall under export controls and be subject to border enforcement.

The cost of shipping sanctioned goods from Europe has risen by around 25% due to disruptions affecting maritime traffic in the Black Sea. Increased logistical risks and tighter controls are adding to the costs faced by companies handling restricted goods.

4. Ukraine’s Sanctions Policy

President Volodymyr Zelenskyy has signed new sanctions against Russia. The measures are intended to further increase economic and political pressure on Russian entities linked to the war against Ukraine.

The International Register of Damage Caused by Russia’s Aggression Against Ukraine has expanded the categories of claims it accepts. The move will allow additional forms of damage to be documented and help build the evidentiary basis for future compensation mechanisms.