Day: April 19, 2023

The U.S. Justice Department is pressing Congress for additional authority to funnel seized Russian assets to Ukraine.

In December, Congress authorized the Justice Department to transfer assets seized from sanctioned Russian oligarchs to the State Department for Ukrainian reconstruction. But the power applies only to assets confiscated in connection with violating U.S. sanctions under certain presidential executive orders.

As a result, millions of dollars' worth of Russian properties confiscated in violation of U.S. export controls and other economic countermeasures cannot be transferred.

Now, the Justice Department is urging Congress to expand the range of forfeited assets that it can transfer to Ukraine for rebuilding.

“We’re leaving money on the table if we don’t expand our ability to use the forfeited assets that we gain from enforcement of our export control violations and expanding the sanctions regimes that that transfer authority is applicable to,” Deputy Attorney General Lisa Monaco said during a Senate Judiciary Committee hearing on Wednesday. “So, I urge the Congress to give us the additional authority so we can make the oligarchs pay for rebuilding Ukraine, as well.”

Since Russia’s invasion of Ukraine in February 2022, the Justice Department, led by Attorney General Merrick Garland, has been cracking down on Russian oligarchs as part of the Biden administration’s response to the incursion.

The law enforcement agency set up a task force shortly after the invasion to enforce sweeping U.S. sanctions and export controls imposed on Russia.

Task Force KleptoCapture has since seized more than $500 million in assets owned by Russian oligarchs and others who support Moscow and dodge U.S. sanctions and export controls, Monaco said.

The seized assets include a $300 million super yacht owned by Russian billionaire Suleiman Kerimov and a $90 million yacht belonging to Viktor Vekselberg, another Russian oligarch.

The Justice Department has used its congressional authority to transfer seized Russian assets only once.

In February, Garland authorized the transfer of $5.4 million taken from a Denver-based bank account of sanctioned Russian oligarch Konstantin Malofeyev.

Last year, Malofeyev was charged by the Justice Department with violating U.S. sanctions imposed on him following Russia’s first incursion into Ukraine in 2014.

He is one of more than 30 Russian oligarchs and others to face U.S. charges of sanctions evasion, export control violations, money laundering and other crimes.

In addition to seizing the yachts and luxury homes of pro-Moscow oligarchs, Western governments have frozen more than $300 billion in assets of Russia’s Central Bank.

Despite calls by U.S. lawmakers and others that the assets be transferred to Ukraine, the U.S. and other G-7 countries have agreed that they will remain “immobilized” until Russia ends its invasion.

Ukraine’s reconstruction is projected to require more than $400 billion.

Democratic Senator Richard Blumenthal said “the real money” was in the frozen Russian funds and asked Monaco if the Justice Department needed more power to transfer them to Ukraine.

Monaco noted that most of the funds were held abroad and that using them for Ukraine posed thorny legal questions, but she insisted that Russia must ultimately pay for Ukraine’s rebuilding.

Source: Voice of America

The European Commission has sent a letter of formal notice to Cyprus calling on the country to implement a 2020 ruling of the Court of Justice of the European Union concerning the insufficient implementation of the urban waste treatment directive. The process could result to financial sanctions against Cyprus if the situation is not remedied within two months. The procedure is part of the Commission's April package of infringement procedures, which also include reasoned opinions to Cyprus and other member states regarding the obligation to establish Maritime Spatial Plans and the full transposition of EU rules on work-life balance for parents and carers. Also included in the package are letters of formal notice to Cyprus on the correct transposition of the Seasonal Workers Directive correctly and of the Euratom Basic Safety Standards Directive. More specifically, the European Commission has decided to send a letter of formal notice to Cyprus (INFR(2017)2046) for its failure to swiftly and effectively implement the ruling of the Court of Justice of the European Union of 5 March 2020 (C-248/19), concerning the insufficient implementation of the urban waste water treatment Directive (Directive 91/271/EEC). This Directive requires towns and cities to collect and properly treat urban waste water before being discharged into the environment. In 2020 the Court of Justice ruled that in 31 agglomerations, Cyprus failed to ensure that all urban water was collected or that urban waste water entering collecting systems was subject to appropriate treatment before being discharged. In order to comply with the ruling, Cyprus has committed to build collection networks or new treatment plants for all agglomerations. According to the Commission there has been progress for two agglomerations, where urban waste water is now collected and treated. However, the remaining 29 agglomerations still do not conform to EU rules. Construction works have only started for 13 agglomerations (with compliance expected to be achieved by the end of this year) while for the other 16 agglomerations, compliance is expected to be reached by 2029. Cyprus has two months to remedy the situation, otherwise, the Commission may decide to refer the back case to the Court of Justice of the European Union, with a proposal to impose financial sanctions to Cyprus. A letter of formal notice is usually the first step in an infringement procedure, followed by a reasoned opinion if the member state does not comply. The final step in the procedure is to refer the case to the Court of Justice of the European Union. April's infringement package also includes a decision by the Commission to close seven infringement procedures against Cyprus on issues related to Home Affairs, Financial stability, Financial services and the Capital Markets Union, Taxation and Customs Union, Justice, Fundamental Rights and Citizenship and Employment, Social Affairs and Equal Opportunities. An infringement procedure on the Cyprus Investor Citizenship Scheme that begun in October 2020 with a letter of formal notice and proceeded with the sending of a reasoned opinion in June 2021 remains open. Maritime spatial planning Cyprus is also one of five member states (along with Bulgaria, Greece, Italy and Romania) to receive a reasoned opinion (INFR(2021)2227) on failure to ensure proper implementation of Directive (EU) 2014/89 establishing a framework for maritime spatial planning. The Directive sets out a common approach for EU countries to plan their maritime areas. Maritime spatial planning aims to organise human activities in marine areas to meet various ecological, economic and social objectives. Amongst these objectives there are the development of a sustainable blue economy, the sustainable use of marine resources, and the conservation of healthy marine ecosystems and biodiversity. Coastal EU Member States are required to draw up maritime spatial plans no later than 31 March 2021, and to submit copies of the plans to the Commission and other Member States concerned within three months of their publication. Bulgaria, Greece, Italy, Cyprus and Romania have still not established and sent copies of their maritime spatial plans to the Commission. Therefore, the Commission has decided to send them reasoned opinions. They now have two months to respond and take the necessary measures to address the shortcomings identified. Otherwise, the Commission may decide to refer the case to the Court of Justice of the European Union. Work-life balance The Commission has decided to send a reasoned opinion to 11 countries including Cyprus (INFR(2022)0341) for failing to notify national measures fully transposing EU rights on Work-Life Balance for parents and carers (Directive (EU) 2019/1158). The other affected countries are Belgium, Czechia, Ireland, Greece, Spain, France, Croatia, Luxembourg, Austria and Slovenia. The Directive aims to foster equal participation of men and women in the labour market, by encouraging equal sharing of care responsibilities between parents. It ensures that fathers have the right to take at least ten working days of paternity leave around the time of birth of the child. The Directive also establishes a minimum of four months of parental leave, with at least two out of the four months paid and non-transferable from one parent to another. It establishes five working days per year of carers' leave for workers providing personal care or support to a relative or person living in the same household. In addition, it gives all carers and working parents of children up to eight years old the right to request flexible working arrangements. The transposition deadline for the Directive was 2 August 2022. On 21 September 2022, the Commission sent letters of formal notice to 19 Member States for failing to communicate measures to transpose this Directive. After having analysed their replies, the Commission found that the Directive is still not fully transposed in 11 Member States, and therefore decided to take a further step in the infringement procedures by sending a reasoned opinion. Member States now have two months to take the necessary measures to comply with the reasoned opinion. Otherwise, the Commission may decide to refer them to the Court of Justice of the European Union. Seasonal Workers Directive The Commission has opened infringement proceedings by sending letters of formal notice to a number of countries including Cyprus (INFR(2023)2018), for failing to transpose in a fully conform manner all provisions of the Seasonal Workers Directive (Directive 2014/36/EU). The other member states are Belgium, Bulgaria, Germany, Estonia, Greece, Italy, Latvia, Lithuania and Luxembourg. The Directive aims at ensuring fair and transparent rules for the admission of third-country seasonal workers to the EU. It also aims at granting decent working and living conditions, equal rights and sufficient protection from exploitation. Ensuring the full respect of the Seasonal Workers Directive is an important prerequisite for attracting the workforce needed for seasonal work to the EU and it could also contribute to reducing irregular migration, according to the Commission. The Commission considers that the Member States mentioned have incorrectly transposed and/or implemented some obligations under the Directive. They now have two months to respond to the arguments raised by the Commission. In the absence of a satisfactory response, the Commission may decide to send them a reasoned opinion. Radiation protection The Commission has opened three infringement procedures by sending letters of formal notice to Cyprus (INFR(2023)2033), as well as to Ireland and France, for failing to correctly transpose the revised Basic Safety Standards Directive (Council Directive 2013/59/Euratom). The Directive, which modernises and consolidates EU radiation protection legislation, lays down basic safety standards to protect members of the public, workers and patients against the dangers arising from exposure to ionising radiation. It also includes emergency preparedness and response provisions that were strengthened following the Fukushima nuclear accident. In those three Member States, the transposition was found to be non-conforming in certain areas covered by the Directive. The conformity issues identified by the Commission are different for each Member State and concerns specific requirements of the Directive, including in relation to non-medical and medical exposures and emergency preparedness and response; to building materials that are of concern from a radiation protection point of view; the management of orphan sources and the powers assigned to their competent authorities; and concerning the provision of information to workers and occupational exposures. These Member States now have two months to reply and address the shortcomings identified by the Commission. Otherwise, the Commission may decide to send them a reasoned opinion.

Source: Cyprus News Agency

Russian state property in Helsinki which was temporarily seized has been released, the head of the Finnish Bailiff Department, Aki Virtanen, told the media. The Finnish authorities confiscated a Russian cultural center and apartments of diplomats last week, in a move that prompted Moscow to intervene.

Helsinki found no reasons for the seizure, Virtanen told Finnish YLE TV. Initially, the authorities imposed a three-week restriction on the cultural center building, the surrounding plot of land, and the apartments of diplomats who work there.

According to Virtanen, the time was needed to check if any of the facilities were linked to entities or individuals blacklisted by the EU. The newspaper Helsingin Sanomat reported on Tuesday that the seven apartments in question are owned by Rossotrudnichestvo, a Russian federal agency for foreign cooperation which was sanctioned by the EU last year.

The Russian Foreign Ministry demanded an explanation from Helsinki and insisted that the facilities enjoy diplomatic immunity. The Russian Embassy in Helsinki also said that it was in “contact with the Finnish authorities over the issue.” The Finnish Foreign Ministry confirmed that it had received the note from Russia. Neither Finland nor Russia have officially commented on the release of property so far.

The US and its allies, including the EU, imposed sweeping sanctions on Russia over its military operation in Ukraine. The restrictions include asset seizures and sanctions on numerous Russian officials, as well as governmental and non-governmental entities. Moscow has denounced the seizure of its assets abroad as “theft.”

Source: Russia Today

NATO countries have no choice other than supporting Ukraine in its war with Russia since not doing so would mean victory for Moscow, the Czech Republic's president said on Wednesday. There is "no alternative to supporting Ukraine because the alternative to it is the success of Russia," Petr Pavel said at a joint news conference with NATO Secretary General Jens Stoltenberg. After talks at the alliance headquarters in Brussels the two discussed Prague's contribution to NATO and the security challenges involved in the war in Ukraine, along with China's more assertive foreign policy. Paval said his country would meet NATO's defense spending target of 2% of gross national product next year and revealed that they were ready for "discussions on spending more if necessary if linked to capabilities." NATO leaders are expected to adopt a more ambitious defense investment target at their upcoming July summit in Vilnius, Lithuania. Pavel acknowledged that public opinion in NATO countries had started to tire of the news on the Russia-Ukraine war, but noted that it was the duty of politicians to maintain support for Kyiv. For his part, Stoltenberg said "the will in Europe to continue supporting Ukraine is enormous," adding that it was a moral duty and a security interest for NATO countries. He said he believed people care when they see that "civilians are killed, that women are raped, and that children are forcibly abducted, taken away from the parents."

Source: Anadolu Agency

The Federal Security Service (FSB) has announced the arrest of a Russian-Ukrainian citizen in the city of Kerch in Russia’s Crimea on suspicion of intending to plant an explosive device at a power system facility.

The 52-year-old man, whose name has not been disclosed, has been accused of illegal acquisition and possession of an explosive device and intent to carry out an act of sabotage. He now faces 20 years to life in prison.

According to an FSB press release, authorities discovered an improvised explosive device (IED) when searching the man’s apartment and found correspondence with representatives of the special services of Ukraine on his mobile phone. The security service claimed that Ukrainian operatives were coordinating the suspect's activities.

A video shared by the FSB from the man’s phone appears to show him filming some sort of energy facility and explaining in Ukrainian what he sees to his handlers in Kiev.

Last month, a 45-year-old Ukrainian citizen in Moscow Region was arrested on suspicion of setting fire to railway equipment. The man, who stands accused of sabotage, is believed to have been acting as part of an organized group and faces up to 20 years behind bars if convicted.

Meanwhile, FSB director Alexander Bortnikov warned last week that Western and Ukrainian intelligence services had launched an “aggressive brainwashing and recruitment [campaign]” in an attempt to involve Russian youths in sabotage, extremist activities, and terrorist attacks against their own country.

Ukraine grooming Russian youth for terror attacks – FSB

According to Bortnikov, since Russia launched its military operation in Ukraine in February 2022, security services have prevented some 118 terrorist attacks in the country, many of which were being prepared by young people and minors.

The FSB director also pointed to “a serious threat” stemming from attempts by some students who are influenced by various “destructive subcultures” to lay the groundwork for attacks on Russian schools and other educational institutions. “Some of [these subcultures] are coordinated from Ukrainian territory,” he added, according to the statement.

In late February, Russian President Vladimir Putin warned that the West had “never hesitated to use both radicals and extremists for their own interests.” “They always use against us whatever is at hand,” he said at the time.

Source: Russia Today