Newsletter of the main news 28.09/04.10

1. Frozen Russian Assets

PACE has called on member and observer states of the Council of Europe to redirect frozen Russian state assets toward compensation for Ukraine and Ukrainian victims. The Parliamentary Assembly also urged states to ensure that national legal frameworks allow the enforcement of European Court of Human Rights judgments.

2. International Sanctions Policy

Hungary’s OTP Bank is reviewing its strategy in Russia and considering a complete withdrawal from the market by the end of the year. The bank has already significantly reduced its Russian operations, including its workforce, branch network and international payment activity.

The EU has imposed sanctions on Russian and occupied-territory institutions and officials involved in the deportation, ideological indoctrination and militarisation of Ukrainian children. The measures include asset freezes, an entry ban and a prohibition on EU citizens and companies providing funds or economic resources to those listed.

Estonia has banned the transit of Russian and Belarusian grain through its territory. The measure covers cereals including wheat, rye, barley, oats, maize and rice and is intended to prevent Estonian ports from becoming an alternative route for Russian grain exports.

Lithuania has approved restrictions on property purchases by Russian and Belarusian citizens without residence permits, subject to parliamentary approval. The government has also proposed restricting performances by Russian and Belarusian cultural figures who have worked in occupied Ukrainian territories or supported Russia’s war.

The UK has introduced 31 new sanctions measures targeting Russia’s shadow fleet, disinformation networks and individuals involved in the torture of Ukrainian civilians and the ideological indoctrination of children. The package also targets vessels acquired to help Russia circumvent sanctions on energy exports.

Japan has expanded its sanctions against Russia, targeting individuals and companies linked to the Russian military-industrial complex. The measures also cover four companies from Turkey and the UAE and 35 vessels associated with Russia’s shadow fleet.

The EU is facing growing difficulties in adopting additional sanctions against Russia as the bloc’s member states increasingly weigh their own economic and foreign-policy interests. Experts cited by Euractiv say the easier targets have largely been exhausted, leaving more complex measures against shadow-fleet operators, financial structures and third-country companies involved in sanctions circumvention.

Putin has placed Metro’s Russian assets under temporary administration. The measure covers the Russian retail business and related entities previously owned by German and Dutch Metro companies, with a newly registered Russian company appointed as administrator.

An Estonian court has sentenced pro-Kremlin activist Oleg Besedin to seven years in prison following a plea agreement over activities directed against Estonia and repeated sanctions violations. His assets worth more than €77,000 will also be confiscated; prosecutors accused him of participating in Russian influence operations and distributing sanctioned Russian television content.

A bank in Tajikistan is restricting services for certain Russian customers whose cards were opened remotely. Humo Bank reportedly required affected customers to undergo biometric identification in Tajikistan or withdraw their funds, reflecting the growing difficulties faced by Russians using financial infrastructure in Central Asia after Western sanctions on Russian banks.

3. Sanctions Violations and Circumvention

Ukraine’s Main Intelligence Directorate has identified 14 banks and payment systems that, according to Ukrainian intelligence, are being used by Russia to bypass restrictions on its financial sector. The mechanisms include digital currencies, cross-border payment networks and financial infrastructure in countries outside the sanctions coalition, helping Russia maintain access to components and technologies needed for weapons production.

Ukraine’s Main Intelligence Directorate has published information on 23 Russian companies involved in producing 95Ya6 missiles for the Pantsir air-defence system. Ukrainian intelligence noted that around one-third of the identified companies have not yet been sanctioned by any country in the sanctions coalition.

Searches have been conducted in Germany and Austria as part of an investigation into the alleged illegal export of vehicles to Russia. Investigators say 53 passenger cars and six tractor units were exported in breach of sanctions between late 2022 and 2024, with the vehicles allegedly routed through Belarus, Kyrgyzstan and Georgia; assets worth around €7 million were seized.