EU Lifts Sanctions on Usmanov and Fridman Amid Controversial Diplomatic Deal

The European Union has lifted sanctions on two prominent Russian billionaires, Alisher Usmanov and Mikhail Fridman, as part of a diplomatic compromise reached on September 21. This controversial deal has drawn significant backlash from Ukraine and has divided opinions among EU member states.

The agreement involves removing Usmanov and Fridman from the sanctions list while simultaneously locking in restrictions on approximately 3,000 other individuals and entities for a period of 36 months, extending the sanctions until autumn 2029. This extension marks a notable departure from the EU’s typical practice of renewing sanctions every six or twelve months.

Background of the Sanctions

France played a key role in advocating for Usmanov's removal, citing national security interests linked to negotiations for the release of French nationals detained in Azerbaijan. Slovakia supported this move as well. In contrast, Luxembourg pushed for Fridman's delisting due to a substantial $16 billion arbitration claim he filed against the country, which posed a significant financial risk given Luxembourg's GDP of around $80 billion.

Both oligarchs had been contesting their sanctions through EU courts since the restrictions were imposed in early 2022, following Russia's invasion of Ukraine. Fridman had previously achieved a partial legal victory in 2024, which likely increased the urgency for a negotiated resolution.

Political Reactions

The decision has faced strong opposition, particularly from Latvia and other Baltic states, which perceive a heightened threat from Russia. Ukrainian President Volodymyr Zelenskyy condemned the delistings, urging the EU to maintain and strengthen its sanctions against Russia.

As the EU navigates the complexities of its sanctions framework, the implications of this deal will be closely monitored, particularly regarding the balance between diplomatic negotiations and the need for a unified stance against Russian aggression.

New Developments

• The EU reached a compromise deal on September 22, 2023, that resulted in the removal of Alisher Usmanov and Mikhail Fridman from its sanctions list.
• Latvia initially blocked the compromise but ultimately chose to abstain, allowing the deal to pass.
• The EU's sanctions renewal cycle has changed from every six months to every three years, extending the current sanctions package until approximately September 2029.
• Ukraine has reacted strongly against the delisting, viewing it as a dangerous concession that undermines the EU's commitment to its sanctions regime.
• The delisting of Usmanov and Fridman could lead to the unfreezing of their European assets and renewed access to banking systems within the EU.