Two Russian billionaires removed from sanctions list as EU extends measures for nearly 3,000 targets for three years

The European Union removed Alisher Usmanov and Mikhail Fridman from its sanctions list related to the war in Ukraine on Tuesday, while extending measures against nearly 3,000 other individuals and entities for three years. The compromise, reached in Brussels just hours before the expiration of the sanctions regime, prevents the collapse of the asset freezes and travel bans in question.

Latvia, the last country to oppose the agreement, ultimately abstained, allowing the decision to pass. France advocated for Usmanov’s removal from the list, while Luxembourg sought Fridman’s exit. European individual sanctions require unanimity among member states for renewal.

Kiev reacted strongly. Ukrainian Foreign Minister Andrii Sybiha described the removal of the two men as “shameful and unjustifiable” and urged European states to consider their own restrictions. Latvian Prime Minister Andris Kulbergs also indicated that Riga might adopt national sanctions.

Usmanov and Fridman were added to the European sanctions list in 2022 following Russia’s large-scale invasion of Ukraine. The measures include freezing assets held within the European Union and travel restrictions. The compromise adopted on Tuesday breaks from the usual practice of renewing sanctions every six months by extending the bulk of the regime for three years.

A compromise reached before the deadline

The disagreement had already forced the Twenty-Seven to grant only a technical extension of one week on September 14, until September 22. A previous standoff over European sanctions had already highlighted the fragility of these decisions, which are subject to power dynamics among capitals. Several high-level meetings in Europe and on the sidelines of the UN General Assembly in New York were necessary to prevent the regime from expiring.

Paris cited national security considerations to support Usmanov’s removal. European diplomats quoted by Reuters also mentioned pressure from Azerbaijan, where two French nationals are detained, a claim rejected by Baku. Luxembourg, for its part, was facing arbitration proceedings initiated by Fridman, who is demanding $16 billion.

The European regime is based on Council Decision 2014/145/CFSP, adopted after the annexation of Crimea and expanded since 2022. It targets individuals and entities deemed to support or benefit from actions undermining Ukraine’s territorial integrity, sovereignty, or independence.