Nicolai Haugsted
EU sparks anger in Ukraine after lifting sanctions on two Russian oligarchs
Keeping 27 countries on exactly the same page is rarely the European Union’s easiest trick.
Throw Russia, billions of dollars, a looming deadline and competing national interests into the mix, and the job becomes considerably less comfortable.
EU governments have now managed to preserve sanctions against nearly 3,000 people and companies accused of supporting Russia’s war against Ukraine. Getting there required a concession that has already infuriated Kyiv and caused unease inside the bloc.
Russian billionaires Alisher Usmanov and Mikhail Fridman are being removed from the sanctions list, can The Guardian confirm.
Ireland’s EU presidency described the final agreement rather diplomatically as “a difficult compromise.”
Two billionaires get their names crossed out
Tuesday’s agreement came with the clock ticking.
EU sanctions require unanimous approval from the 27 member states, meaning failure to reach an agreement could have jeopardized the wider blacklist.
Usmanov and Fridman ultimately became the price of securing a much broader extension.
Both men will lose the asset freezes and travel restrictions imposed on them under the EU sanctions regime. Meanwhile, restrictions covering thousands of other Russian-linked individuals and entities will remain in place for another 36 months.
Previously, individual sanctions had generally required renewal every six months.
“Until now, these listings have been reviewed and assessed on a six-monthly basis; today’s decision to renew on a 36-month basis enhances the durability and predictability of the EU sanctions framework,” a spokesperson for Ireland’s EU presidency said.
Vladimir Putin and Russian Foreign Minister Sergey Lavrov remain among the prominent names covered by the restrictions.
France surprised its European partners
Usmanov’s escape from the blacklist began with an intervention from Paris that reportedly caught several other EU governments off guard.
France requested that the Russian-Uzbek billionaire be delisted on “national security” grounds.
Reports have linked the French request to efforts involving the release of French nationals detained in Azerbaijan, although the precise diplomatic arrangements have not been publicly detailed by Paris.
Luxembourg subsequently pushed for Fridman to receive similar treatment.
Fridman, a Russian-Israeli businessman, has launched a roughly $16 billion claim against Luxembourg over assets frozen under the sanctions regime.
Several governments were unhappy with the logic behind the exemptions, according to reports from Brussels. Their concern goes beyond the fortunes of two billionaires: allowing individual governments to seek delistings for national reasons could encourage similar demands whenever the sanctions come up for negotiation.
Agreement still wasn’t guaranteed as Tuesday approached. Latvia objected at the eleventh hour, with parliamentary elections scheduled for October 3 adding another layer to an already delicate political negotiation.
Prime Minister Andris Kulbergs initially rejected the proposed arrangement and instructed his foreign minister to continue discussions with Paris and Brussels.
“As long as Russia continues the war, Europe’s pressure must become stronger, not more convenient for the Kremlin,” Kulbergs said while opposing Usmanov’s removal.
Latvia eventually opted for a constructive abstention, clearing the way for the necessary agreement without actively supporting the two delistings.
Brussels had its deal.
Kyiv was considerably less enthusiastic.
Ukraine calls the decision shameful
Ukrainian President Volodymyr Zelenskyy publicly criticized the decision shortly after details emerged.
“No name on the sanctions list is there by accident: each one represents a reason why this war started and continues to this day,” Zelenskyy wrote.
Foreign Minister Andrii Sybiha went considerably further.
Calling the decision “shameful and unjustifiable,” Sybiha argued that Moscow would regard the outcome as a victory.
“Moscow is celebrating because it got what it wanted: a sense of impunity, the humiliation of the EU, and division among Europeans,” he wrote.
Kyiv’s frustration reflects a broader concern surrounding the compromise.
Extending thousands of sanctions for three years gives the EU significantly more stability than the old six-month system. Removing two wealthy Russian businessmen because individual member states demanded exemptions, however, has raised questions about how united the bloc really is when national priorities collide with collective policy.
Tuesday’s deal does not mean EU diplomats can put the Russia sanctions files back in the drawer.
Senior officials are preparing roughly 1,600 additional designations targeting individuals and organizations linked to Russia’s military-industrial complex, with proposals expected to reach foreign ministers next month.
