Newsletter of the main news 31.08/06.09

 1. Frozen Russian Assets

 

Belgium remains cautious about using frozen Russian assets to support Ukraine. Brussels is concerned about potential legal and financial consequences and is calling for a common EU approach to sharing the associated risks.

 

2. International Sanctions Policy

 

The United States is refusing to offer Russia economic concessions before the war ends. Washington stresses that any easing of sanctions pressure could only be considered in the context of ending Russia’s aggression, rather than as an advance concession in exchange for potential future agreements.

 

The EU has backed further tightening of visa restrictions on Russian citizens. The measures include a ban on entry to the EU for former Russian military personnel who took part in the war against Ukraine, as well as stricter rules for issuing tourist visas to Russian nationals.

 

Bulgaria has agreed to an exemption from the sanctions regime, allowing the import of equipment and metal products from Russia required to operate the Kozloduy Nuclear Power Plant. Sofia argues that a significant share of the plant’s systems is of Russian origin.

 

Russia is closing all Goethe-Institut offices in the country in retaliation for German measures. Moscow announced that the institutes in Moscow, St Petersburg and Yekaterinburg would cease operations following Berlin’s decision to close Russia’s cultural centre in Berlin and its consulate in Bonn.

 

Germany is preparing a response to what it describes as a Russian hybrid attack following a drone incident in Leipzig. Berlin has linked the incident to Russian activity, while the developments have intensified EU discussions on sanctions, counterintelligence measures and restrictions targeting Russian nationals.

 

Ireland has so far stopped short of committing to sanctions against Aughinish Alumina, owned by Russia’s Rusal. The plant exports most of its output to Russia, while Ukraine argues that the aluminium raw materials may have been reaching Russia’s defence industry.

 

Slovakia has blocked the extension of EU sanctions against Russia for another 12 months, demanding that other outstanding issues in its relations with Brussels be addressed. The move creates additional uncertainty over the timely renewal of the EU’s existing sanctions regime.

 

Slovakia has reported Russian threats over its decision to join the International Claims Commission for Ukraine. According to the Slovak opposition, Moscow warned that signing the Convention establishing the International Claims Commission would be viewed as a “hostile step.” Despite this, the Slovak government approved accession to the Convention on 2 September.

 

Latvia is calling for a ban on the transit of Russian grain and animal feed through its territory. Supporters of the restrictions argue that even the transit of Russian agricultural products enables Moscow to generate revenue and retain access to European logistics infrastructure.

 

Norway has detained the Russian vessel Professor Molchanov at the request of Naftogaz. The vessel is prohibited from leaving the port of Barentsburg in Svalbard. The detention is intended to help enforce an arbitration award requiring Russia to compensate the Ukrainian company.

 

The International Federation for Equestrian Sports (FEI) has lifted all restrictions on Russia. From 5 October, Russian athletes, horses and officials will be allowed to compete under the Russian flag, while Russia will once again be eligible to host international competitions under FEI auspices.

 

Russia is challenging its exclusion from the 2027 World Championship. Moscow is using legal mechanisms within international sports organisations to seek the return of Russian athletes to competition, despite restrictions remaining in place in a number of disciplines.

 

Russian and Belarusian athletes have been cleared to compete in international skiing events. The decision is another example of the gradual easing of sports-related restrictions following a shift in the international Olympic movement’s approach to the participation of athletes from the two countries.

 

FIBA has eased restrictions on Russian and Belarusian basketball players. However, national teams have not been fully reinstated in international competitions: some restrictions remain in place, while certain exemptions apply to youth teams and 3x3 basketball.

 

3. Sanctions Violations and Evasion

 

Russia has nearly doubled its “shadow fleet” of gas tankers to around 25 vessels. Moscow is expanding the fleet ahead of the EU’s forthcoming ban on imports of Russian LNG, creating alternative channels for maintaining gas exports.

 

Russia is using the Maldives as a new transit route for goods subject to Western export restrictions. According to an investigation, microchips, optical equipment and aviation components are being routed through Malé before being shipped onwards to Moscow.

 

Lithuania has tightened inspections of Russian grain amid suspicions that some shipments may have been stolen from occupied Ukrainian territories. The enhanced controls are intended to help identify Ukrainian grain illegally removed from occupied areas and subsequently presented as Russian produce.

 

Albania has denied port entry to a tanker linked to Russia’s “shadow fleet.” The decision highlights efforts by individual European countries to strengthen scrutiny of vessels that may be used to circumvent oil sanctions.

 

A London-based bank has been fined in the UK for sanctions violations related to Russia. The case underscores that enforcement is increasingly targeting not only those directly involved in sanctions evasion, but also financial institutions that fail to comply with restrictive measures.

 

The UK has increased penalties for sanctions violations involving Russia: the maximum fine imposed by the Office of Financial Sanctions Implementation (OFSI) has been raised from 50% to 100% of the value of the relevant transaction. London has also warned businesses about risks associated with Russia’s A7 financial network, which is suspected of facilitating sanctions evasion.

 

4. Ukraine’s Sanctions Policy

 

Ukraine has secured the removal of neutral status for a prominent Russian figure skater. The decision follows Ukrainian diplomatic and sanctions-related efforts aimed at preventing Russian athletes from being presented as apolitical participants in international competitions.

 

The International Register of Damage has opened new categories for claims related to damage to or loss of cultural heritage. This expands the mechanisms available for documenting harm suffered by Ukraine and its citizens as a result of Russia’s aggression.