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Latvia shares experience on the implementation and effectiveness of sanctions
01.10.2025.

Paulis Iļjenkovs, Deputy Head of the Financial Intelligence Unit (FIU) for Sanctions, spoke at a public hearing of the European Parliament's Committee on Economic and Monetary Affairs (ECON) on the implementation and effectiveness of European Union (EU) financial sanctions against Russia. The discussion was also attended by John Berrigan, Director-General for Financial Stability, Financial Services and Capital Markets Union of the European Commission.

"Currently in force, financial sanctions are strong, but member states need to improve their implementation in practice. Without a more uniform application of sanctions, their impact on Russia will be less than possible," emphasized Paulis Iļjenkovs.

Photo: from left: John Berrigan, Director-General of the European Commission for Financial Stability, Financial Services and Capital Markets Union, and Paulis Iļjenkovs, Deputy Head of the Financial Intelligence Unit for Sanctions.

In his speech, the FIU representative emphasized three important aspects:

  • The EU's financial sanctions against Russia are strong and influential – they include an asset freeze of approximately €25 billion, the immobilization of the Russian Central Bank's reserves of approximately €210 billion, as well as capital market restrictions, transaction bans and other measures.
  • Their impact directly depends on a unified and coordinated implementation. Latvia has established a centralized approach: unified sanctions enforcement, a verified register of frozen assets, close monitoring of payments and trade flows, extensive guidelines for entrepreneurs, and already around 600 criminal proceedings, mostly for violations of trade sanctions.
  • Regularly assess which financial sanctions are most effective and focus the activities of customs, financial intelligence units, law enforcement and compliance teams on those areas where results are strongest.

The discussion also raised the risks of circumventing sanctions, including through third countries and cryptocurrencies. P. Iļjenkovs pointed out that, thanks to the EU's 19th sanctions package, it is also possible to target cryptocurrency service providers located outside the EU that help Russia evade sanctions.

The possibility of using frozen Russian assets as collateral for loans to Ukraine was also discussed, as well as strengthening measures to confiscate funds related to criminal activities of Russian oligarchs.

More information and a recording of the discussion can be found here.

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