February 12, 2025 Ukraine and the World – Against russia’s Aggression. Sanctions in Action

Japan will provide Ukraine with $58 million to rebuild infrastructure.

US Secretary of State Marco Rubio has said that the main issue at the Munich Security Conference on February 14-16 will be russia's war against Ukraine.

“The fundamental question of this war is what kind of world do we want to live in: in a world where military force dictates the fate of other nations, or a world built on rules, where free nations can make decisions about their own future. The courage and resilience of Ukrainians have inspired the world. But admiration alone is not enough. This is not just Ukraine's fight. It is a fight for the values that define all of us. And for Europe's very own security,” said European Commissioner for Enlargement and European Neighborhood Policy Martha Kos, emphasizing that the EU should ensure that Ukraine is in a “position of strength” before potential peace talks.

Minister for European Union Affairs of Poland presiding on the EU Adam Szłapka has pointed out that russia's full-scale aggression against Ukraine poses a direct threat to Europe's security. That is why the EU will continue to support Ukraine for as long and as intensively as it takes for Ukraine to win this war. “russia's aggressive war is a direct threat to Europe and to the wider international system. It has polarized international relations, undermined the rules-based international order, and is fueling a global crisis, especially in the spheres of food and energy,” said the Minister.

German arms manufacturer Rheinmetall has handed over to Ukraine five more Caracal air assault vehicles.

The Ukrainian diaspora in Canada will donate a Sikorsky S-76A medical helicopter worth over $700,000 to Ukraine.

After the start of russia's full-scale invasion of Ukraine, the Austrian insurance group UNIQA provided support to the Ukrainian people in the form of humanitarian aid and donations worth about EUR 6 million.

Lithuania has appointed Darius Skusevičius as Ambassador-at-Large for coordination of the recovery and reconstruction of Ukraine at the Ministry of Foreign Affairs.

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The European Union intends to adopt 16th package of sanctions against russia to mark the third anniversary of the rf's full-scale invasion of Ukraine.

The Intelligence Service of Denmark warns that the military threat from russia will increase in the coming years, and under certain circumstances, in about five years russia may be ready for a large-scale war in Europe.

Prime Minister of Japan Shigeru Ishiba has reaffirmed his commitment to resolving the issue of the Kuril Islands and concluding a peace treaty with the rf. “We will firmly adhere to the course of resolving the issue of returning the four northern islands and concluding a peace treaty,” he said.

Germany does not intend to return to gas supplies from russia. This was stated by Germany’s Chancellor Candidate from the CDU/CSU bloc Friedrich Merz.

Tbilisi has “no possibility” of restoring diplomatic relations with russia because of the latter’s position on Abkhazia and South Ossetia, – said Prime Minister Irakli Kobakhidze. He reminded that authorities of Georgia consider the current status of the quasi-republics to be an “occupation” and added that the country will continue to defend its national interests in this regard.

rossotrudnichestvo's representative office in Azerbaijan – the russian information and cultural center – is shutting down. The decision was made at the request of the Ministry of Foreign Affairs of Azerbaijan. The dismantling of the sign on the russian house has begun in Baku. The part of the sign written in russian has already been removed from the building.

The European Court of Human Rights has upheld the lawsuit filed by the russian newspaper “novaya gazeta” against the rf and concluded that the russian authorities did violate the right to freedom of expression by banning deviations from the kremlin's official narrative in its coverage of the russian-Ukrainian war. The ECHR judges unanimously concluded that the actions of russian authorities violated Article 10 of the European Convention on Human Rights on freedom of expression.

In the first month of 2025, the federal budget deficit of the rf increased almost 14 times compared to the same period last year due to a sharp jump in spending, exceeding the plan for the whole year. In January, expenditures were higher than revenues by 1.71 trillion rubles, or 0.8 % of GDP, compared to the budgeted deficit for the year of 1.17 trillion rubles, or 0.5 % of GDP. A year ago, in January, the budget was executed with a deficit of 124 billion rubles, or 0.1 % of GDP. Treasury expenditures in January amounted to 4.38 trillion rubles and jumped by 73.6 % compared to the same period last year. Thus, in the first month of the year, the ministry of finance fulfilled 10.6 % of its annual spending targets, which were set at 41.47 trillion rubles.

russia's foreign trade surplus in December 2024 decreased to $5.575 billion from $6.018 billion a month earlier. In December 2023, the surplus was almost twice as large – $10.933 billion.

As of January 1, 2025, russian banks held 38.1 tons of gold, the lowest since July 2022. In the past, such a sharp decline in reserves was observed in 2020 amid the crisis and pandemic. Over the past year, the balances on precious metals accounts in money decreased by 23.6 %. In terms of physical gold, the decline was larger – 46.4%, or more than 33 tons.

The drop in sales of new buildings in the rf also affected the volume of new properties being put on the market. Over the past two months, the number of lots offered decreased by 7 %, although this figure has been steadily growing since July last year.

By the end of 2025, the commercial real estate market in russia may face a 34-60 % reduction in investment volumes to RUB 550-600 billion.

Interest rates on soft loans to russian agricultural producers have been doubled. The measure affected existing investment loans. Initially, the 5 % per annum specified in the agreement rose to 50 % of the central bank’s key rate, which is 21 %.

The federal tax service of the rf has started checking sales and purchase transactions between russians and foreigners, issuing fines of 20-40 % of the amount if the payments were made in foreign currency in cash.

As Chinese refiners have cut back on purchases due to sanctions and logistical problems, and freight rates for vessels not under restrictions have increased significantly, russian suppliers have to reduce oil prices. Deliveries of ESPO crude oil from the far eastern port of kozmino on tankers that are not on the blacklist, loading in March, are being made at a premium to Brent of $2-3 per barrel. Buyers are also offered to accept oil delivered on a sanctioned tanker at an even lower price.

One of the most popular registrars of trusts and companies for russian billionaires in the Bermudas – Meritus Trust – was fined $600,000 by the Isles’ financial regulator in December 2024. The regulator’s investigation of the company began after the massive imposition of sanctions against russian billionaires and in the midst of the seizure of their assets – in June 2022.

The government of the rf is discussing a moratorium on paying dividends by the hydroelectric generating state company rusgidro until 2028 to stabilize its financial condition. Instead of dividends, the funds are proposed to be used for investments and repayment of borrowings raised as part of refinancing loans to a subsidiary of the far eastern power generation company.

nornickel's financial performance has fallen to multi-year lows amid negative market conditions and pressure from sanctions. In view of this, management will recommend to the board of directors not to pay dividends for 2024. Revenue decreased by 13 % year-on-year to $ 12.5 billion, while net profit fell by 37 % to $1.8 billion. Revenue was the lowest since 2018, and net profit was the lowest since 2015.

The coal industry in kuzbass – russia's main mining region, which accounts for 60 % of all hard coal in russia and about 80 % of coking coal, is on the verge of survival. This was stated by the governor of kemerovo region on February 10. According to him, the coal industry is “experiencing enormous difficulties.” “Many companies ended last year with losses. There is a question of the survival of the industry as a whole,” he said.

Under the pretext of “protecting national security”, russian lawmakers intend to simplify criminal prosecution for “discrediting the army” and “calling for sanctions” against russia “for mercenary motives or for hire”. This refers to the abolition of the so-called principle of prejudice proposed by the members of the state duma, when criminal liability for a crime occurs only after an administrative punishment.

In 2024, the index of russians' need for psychological help reached 30 points out of 100. This figure was 1.3 times higher than in 2022, when russia started the full-scale war with Ukraine (23 points). It was also the highest since 2009, when a record of 32 points was recorded.

The authorities have recognized the shortage in education, including a shortage of 33 % of teachers of mathematics and over 37% of teachers of physics, as well as the issuance of “fake diplomas”.

The rf’s government did not support a draft law providing for administrative liability for promoting polygamy.

members of the state duma of the rf have prepared a draft law aimed at restricting the use of non-standard names during the registration of newly born children. The initiative proposes to introduce a list of permitted names, which parents will not be able to go beyond.

speaker of the state duma vyacheslav volodin has suggested that russian politicians, human rights defenders and civic activists who received money from the US Agency for International Development (USAID) should “publicly confess and repent on red square.” According to the speaker, russian authorities should request from the US Congress a list of russians who have been funded by USAID. “If they have recognized the organization as a hostile organization, let them give us the lists. If the Congress sends the lists, we will give them to the fsb,” he added.

Transparency International has published its annual Corruption Perceptions Index. russia is 154th out of 180. Last year, russia was ranked 141st. The rf scored 22 points, exactly as Lebanon and Honduras did. 154th place is the worst result for russia in the history of the Index. The ranking is based on how experts and businesses perceive corruption in a country. The lower the score, the higher the level of corruption, and the higher the score, the lower the level of corruption.

belarus also dropped in the ranking. In 2024, belarus received 33 points out of 100 and was ranked 114th. Compared to the 2023 ranking, the country dropped four positions.

The balance of foreign trade in the rb last year was minus $1.3 billion.

In the first half of 2022, one in three residents of minsk was ready to leave the country for some time or permanently. This data is contained in the report on the socio-economic development of minsk in January-May 2022.

The Dead Head image was recognized as “extremist material” in the rb. The prosecutor's office pointed out that “a partial image of a skull with bones crossed behind it and the inscription “Never lose your smile” on top was often associated among young people with the emblem of the 3rd Tank Division of the SS “Dead Head” and leveled the populations’, especially young people’s, intolerance to Nazism.