EU countries agreed to remove Alisher Usmanov and Mikhail Fridman from the sanctions list and at the same time extend restrictions against the remaining nearly 3,000 Russia-linked individuals and legal entities for three years.
Extending the entire sanctions package required unanimous consent from all bloc countries, so negotiations took place against the backdrop of a dispute between France, Luxembourg, and Latvia.
According to Reuters and the Financial Times, France and Luxembourg insisted on removing the two billionaires, while Latvia opposed it until the very end. One EU ambassador called the outcome “an utter disgrace” and said the bloc countries were faced with a choice between removing two billionaires and derailing the extension of the entire list.
France had previously explained its position with national security considerations. A representative of the French diplomatic service told The Washington Post that Paris wanted to “respond positively to requests from our international partners” regarding Usmanov.
According to WaPo sources, France’s demand was also linked to efforts to secure the release of French citizens held in Azerbaijan, and two European diplomats told the publication that Baku was pressuring Paris on the Usmanov issue.
Luxembourg sought a similar decision on Fridman, who filed a $15.8 billion arbitration claim against the country. The Financial Times writes that some diplomats fear a dangerous precedent, in which EU countries could use the common sanctions policy for their own interests and seek concessions by pressuring European governments.
Alexander Kirk of the human rights organization Urgewald called this development “a dangerous precedent”. Sanctions against Usmanov and Fridman were imposed after Russia’s full-scale war against Ukraine began, and the decision to extend the restrictions still requires unanimous approval from all EU countries.
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