Newsletter of the main news 18.05/24.05

1️⃣ Frozen Russian Assets

Kazakhstan’s court has authorized the enforcement of a $1.4 billion arbitration award in favor of Naftogaz against Gazprom. This marks the first publicly known recognition of such an award in a foreign jurisdiction, opening the way for asset recovery efforts against the Russian energy giant beyond Russia’s borders.

The Court of Justice of the EU confirmed the legality of freezing assets linked to sanctioned Russian individuals, even when ownership is structured through trusts. The Court emphasized that ownership and control may be established not only through direct legal ties but also through actual influence, the role of founders or beneficiaries, and overly complex ownership structures designed to obscure control.

2️⃣ International Sanctions Policy

The International Gymnastics Federation has allowed Russian and Belarusian athletes to return to international competitions under their national flags and anthems. The decision applies across all major gymnastics disciplines, although participation in the Olympic Games will still require separate approval from the IOC.

The U.S. Treasury will extend for another 30 days the sanctions waiver for transactions involving Russian oil already loaded onto vessels. Washington cites requests from vulnerable countries facing supply disruptions amid tensions around Iran and the Strait of Hormuz, though the move temporarily creates additional room for Russian energy exports.

The International Federation of Muaythai Associations lifted restrictions on Russian and Belarusian athletes, allowing them to compete again under national symbols and country abbreviations. The ban had been in place since March 2022, while athletes previously participated only under neutral status.

Slovakia is preparing a 10-year gas agreement with Azerbaijan as part of its gradual phase-out of Russian gas imports in line with EU policy. State energy company SPP is negotiating with SOCAR, following earlier pilot deliveries of Azerbaijani gas.

G7 finance ministers agreed to maintain sanctions pressure on Russia. Following their meeting in Paris, the group reaffirmed a common position that Moscow should not benefit financially from the war against Ukraine or from broader geopolitical crises.

According to Bloomberg, the United States is pressing Ukraine and regional partners to ease restrictions on Belarusian potash exports. Washington believes this could reduce Minsk’s dependence on Moscow, although Lithuania has ruled out reopening transit routes and the EU shows no signs of revising its sanctions regime.

The European Commission stated that it does not plan to ease sanctions against Russia despite temporary exemptions introduced by the U.S. and the UK for Russian oil-related transactions. Brussels reiterated its commitment to limiting Russian oil and gas imports and preventing Moscow from profiting from the Middle East crisis.

The UK authorized imports of diesel and aviation fuel produced from Russian crude in third countries and temporarily allowed LNG supplies from the Sakhalin-2 and Yamal projects to third markets. London says the exemptions are aimed at stabilizing energy prices, though the move triggered criticism over the risk of indirectly supporting Russian revenues.

Ukraine will challenge the International Gymnastics Federation’s decision to fully lift restrictions on Russia and Belarus. The Ukrainian federation is calling for an extraordinary congress, arguing that the return of athletes under national symbols creates unequal conditions for Ukrainian competitors.

Lithuania plans to ban nearly 600 additional Russian servicemen involved in the war against Ukraine from entering Lithuania and the Schengen Area. The restrictions will last up to 10 years nationally and up to 5 years across Schengen, bringing the total number of identified Russian combatants on such lists close to 900.

The United States has officially approached Ukraine, Lithuania and Poland regarding the possible easing of transit restrictions on Belarusian potash. Washington argues this would support alternative routes that bypass Russia, while the EU continues to maintain sanctions against Belaruskali and Belarusian fertilizers.

Switzerland expanded sanctions against Russia and Belarus by adding 115 individuals and entities to its lists. The measures target actors linked to the Russian defense and energy sectors, those involved in the deportation of Ukrainian children, and introduce tighter export controls for another 60 companies.

3️⃣ Sanctions Violations and Evasion

German authorities uncovered a supply network delivering sanctioned technologies to Russia’s defense industry through a German company and transit routes via Türkiye. The scheme involved around 16,000 shipments worth more than €30 million, including microelectronics, sensors and dual-use equipment reaching Russian defense enterprises.

Russia imported another Airbus aircraft via Oman in circumvention of aviation sanctions. According to The Insider, the Airbus A320 changed ownership structures, registration and transit routes before arriving in Moscow, highlighting the use of third countries to sustain Russia’s access to Western aircraft.

The UK fined Deutsche Bank’s London branch £165,000 for violating Russian sanctions. In 2022 the bank processed two payments linked to a Russian entity associated with a sanctioned structure, although the penalty was reduced after self-reporting to OFSI.

Finland is investigating three individuals over suspected sanctions circumvention involving truck and trailer exports to Russia. Authorities say a Finnish company moved 135 trucks and 29 trailers worth €17.5 million, formally routing exports through Kazakhstan and Türkiye while customs clearance ultimately occurred in Russia.

Kyrgyzstan suspended the registration of 50 companies potentially linked to trade with Russia and sanctions evasion. The move follows pressure from Western partners and growing EU concerns over the country’s role as a transit hub for electronics, radio equipment and machine tools reaching Russia’s military sector.

Russian “Shahed” drones were intercepted in Mali for the first time, equipped with Chinese components, confirming the expansion of Russian military technologies into the Sahel region. The UAV contained commercially available microchips, transistors, diodes and relays similar to those used in attacks against Ukraine.

The sanctioned vessel ZAID exported nearly 36,000 tonnes of grain from occupied Sevastopol. During the voyage it switched off AIS tracking, used spoofing techniques and entered Russia’s Port Kavkaz to obtain falsified cargo documentation.

4️⃣ Ukraine’s Sanctions Policy

President Volodymyr Zelenskyy imposed sanctions on 127 Russian military personnel involved in missile strikes against Ukraine and 29 vessels used to transport cargo supporting Russia’s war effort. Ukraine will also continue coordinating with partners to synchronize sanctions against additional vessels linked to Russian logistics networks.