This week, sanctions came from both Ukraine’s partners and Kyiv itself, while Russia, squeezed by global restrictions, kept losing ground — both in the oil fields and in orbit.
Russia Prepares to Reduce Oil Production Due to Sanctions and Ukrainian Drone Strikes
Russia may be forced to cut oil production in the coming months as U.S. and EU sanctions complicate access to tankers for shipments to Asia, while regular Ukrainian drone attacks disrupt the operation of oil refineries in border regions. According to Reuters, due to sanctions, the cost of shipping cargo from Russia’s Pacific port of Kozmino to China has increased fivefold, and some ports have closed to Russian tankers.
Three executives at Russian oil companies told Reuters that the reality is clear: Russia will have no choice but to slow down oil production. They note that Russia has a growing surplus of crude due to declining exports and reduced refinery production. Russia has limited storage, and in recent weeks Ukraine has targeted some of these facilities with drones.
Sanctions Hamper Russia’s Space Industry
Due to restrictions on importing high-tech equipment, Russia’s space program is facing a shortage of necessary components, leading to delays and failures in several Roscosmos projects. The lack of access to Western microchips, electronics, and composite materials complicates the assembly of satellites and rockets, while the rising cost of import substitution hinders the development of new spacecraft.
Against this backdrop, Putin dismissed Roscosmos chief Yury Borisov, who had led the agency since 2022. As The Moscow Times reports, the reason for his removal was "serious shortcomings" and the failure to fulfill key objectives in developing Russia’s space infrastructure. Analysts believe the Kremlin is seeking a scapegoat for failures caused less by personnel mistakes and more by the impact of sanctions and the inability to fully cooperate with Western space agencies.
Switzerland Fully Joins the 15th EU Sanctions Package Against Russia
The Swiss Federal Council has confirmed its full synchronization with the European Union’s 15th sanctions package, which affects Russia’s financial, transport, and energy sectors. These restrictions include freezing assets, controlling the export of dual-use goods, and additional bans on trading Russian energy resources.
Since the start of Russia’s full-scale invasion of Ukraine, Switzerland has been increasingly abandoning its traditional neutrality and aligning with EU sanctions. This step significantly complicates Russian companies’ attempts to bypass sanctions via Swiss banks and legal entities.
Ukraine Imposes Sanctions for the Destruction of National Culture
The National Security and Defense Council (NSDC) of Ukraine imposed sanctions on 55 Russian citizens involved in spreading the "Russian World" ideology and destroying Ukrainian cultural heritage in temporarily occupied territories. The decision was initiated by the Ministry of Culture and Information Policy and specialized experts.
Deputy Minister of Culture Andriy Nadzhos, in his Facebook, thanked the Economic Security Council of Ukraine and the Regional Center for Human Rights for cooperation.
Sanctions Against Ukraine’s Fifth President
President Volodymyr Zelenskyy approved an NSDC decision imposing indefinite personal sanctions, including against the fifth President, Petro Poroshenko.
Also subject to restrictions are oligarch Ihor Kolomoyskyi, billionaire Kostiantyn Zhevago, former PrivatBank co-owner Hennadiy Boholiubov, and Viktor Medvedchuk, who is accused of high treason.
Nuclear Weapons in Belarus
A document regulating the security guarantees of the Union State of Russia and Belarus has appeared on the Russian parliament’s website. It provides for the possibility of using nuclear weapons in the event of "aggression" against either party, which may include both nuclear strikes and conventional arms deemed a critical threat to sovereignty or territorial integrity.
Additionally, Article 5 of the agreement stipulates the deployment of Russian military bases and units on Belarusian territory to "prevent and repel acts of aggression." However, implementing this clause requires separate agreements between Moscow and Minsk and is not automatic.
Turkish Visa Cards for Sale on Russian Online Marketplaces
Russian online platforms are offering Turkish Visa bank cards for sale. These allow Russian citizens to make online and offline payments in foreign stores and services, despite sanctions against Russian banks.
Buyers are offered Visa cards issued by Turkish banks, typically arranged through intermediaries, raising concerns about the security and legality of such transactions. Questions also arise about the effectiveness of Russia’s import substitution policy, which forces Russians into precarious financial dealings to access basic services of the developed world.
Stay tuned to our resources to get the next Sanctions Digest next week.