EU Extends Sanctions Regime While Delisting Two Russian Oligarchs

The European Union first sanctioned Alisher Usmanov and Mikhail Fridman in 2022 after Russia invaded Ukraine. The bloc cited their business contributions to Kremlin revenue. Previously, the EU renewed these sanctions every six months. This process required unanimous approval from all member states. The cycle often created diplomatic friction as individual nations used their veto power to negotiate specific interests. The EU now extended the sanctions for 36 months until September 22, 2029. This shift creates a longer-term framework to provide predictability for economic measures against Russia.

The EU agreed to remove both individuals from the blacklist to secure this compromise. France advocated for Usmanov's delisting to facilitate a potential prisoner release deal involving French nationals held in Azerbaijan. Luxembourg pushed for Fridman’s removal while he pursues a €15 billion lawsuit against the country over frozen assets. Latvia initially opposed these exemptions. The country eventually dropped its veto. This allowed the broader sanctions regime to proceed.

1. The European Union extended sanctions on approximately 3,000 Russian individuals and entities for 36 months. These measures remain in effect until September 22, 2029. Kaja Kallas, the European Union High Representative for Foreign Affairs and Security Policy, announced the decision. Kallas stated the bloc required stability by settling the future of these sanctions. The 36-month term replaces the previous six-month renewal cycles. This change creates a more predictable sanctions framework.

2. France requested the delisting of Alisher Usmanov to facilitate a prisoner release deal. The agreement involves French nationals currently detained in Azerbaijan. The French government seeks the release of these citizens to address humanitarian and diplomatic concerns. This move illustrates the use of sanctions as a tool for specific diplomatic goals.

3. Luxembourg requested the removal of Mikhail Fridman from the sanctions list. Fridman is pursuing a €15 billion ($17 billion) lawsuit against the country regarding frozen assets. Government officials stated that settling the legal dispute would reduce the administrative burden on the Luxembourg legal system. The move addresses a liability that the state identified as a potential long-term cost.

4. Latvia dropped its veto on the exemptions after days of negotiations. This decision allows the broader sanctions package to move forward. The deal maintains unity among European Union (EU) member states on the sanctions regime.

1. Ukrainian Foreign Minister Andrii Sybiha and President Volodymyr Zelenskyy criticized the European Union's decision to remove sanctions from two Russian oligarchs. Both leaders described the delisting as "shameful and unjustifiable." This disagreement exposes tensions between the EU and Ukraine over the enforcement of sanctions against figures linked to the Russian economy. The decision affects the perceived unity of the bloc's support for Ukraine.

2. An anonymous EU diplomat criticized the decision on May 22, 2024. The diplomat stated that the move signals that entities can use diplomatic pressure to secure removal from sanctions lists. The diplomat argued that these exemptions reward the use of legal and diplomatic leverage to bypass established measures. This official expressed concern that such concessions undermine the integrity of the broader sanctions program.

3. The Kremlin publicly supported removing Alisher Usmanov and Mikhail Fridman from European Union sanctions lists. Moscow officials also urged the EU to lift all sanctions against Russian business figures. This position from the Russian government reflects ongoing debate regarding the impact of EU sanctions. Analysts continue to evaluate the long-term effectiveness of these economic measures against Russian interests.

4. France cited 'national security' concerns to justify the delisting of Usmanov. Some diplomats argue this rationale contradicts sanctions criteria linked to Kremlin ties.