The European Union agreed to remove Russian billionaires Alisher Usmanov and Mikhail Fridman from its sanctions list while extending restrictions on nearly 3,000 other individuals and entities for three years, overcoming a last-minute diplomatic standoff and provoking fierce criticism from Kyiv.
A Difficult Compromise to Save the Sanctions Blacklist
Faced with an end-of-Tuesday deadline to preserve the Russia blacklist, the EU’s 27 member states hammered out an agreement that delisted the two oligarchs in spite of very few countries wanting this outcome. Because EU sanctions require unanimous approval among member states, the holdouts forced a bitter negotiation process that threatened to let the entire sanctions regime lapse.
To secure the unpalatable delistings, diplomats agreed to roll over the broader sanctions package for 36 months rather than the traditional six-month reviews. A spokesperson for Ireland’s EU presidency, which brokered the talks, explained that the bloc had reached a difficult compromise designed to enhance durability and predictability.
“The compromise will involve an extension of the regime for 36 months, until 22 September 2029,”
spokesperson for Ireland’s EU presidency, via The Guardian
A spokesperson added: The decision was also taken to delist certain individuals under the regime. EU top diplomat Kaja Kallas insisted that the bloc needed “stability” by settling the future of its sanctions.
Pressure From Paris and Luxembourg Spark Diplomatic Friction
The push for exemptions stunned European capitals. France demanded that Usmanov, a Russian-Uzbek metals tycoon, be removed from the blacklist on national security grounds. Officials in Paris have cited national security
concerns for their request on Usmanov, but refused publicly to give details. A senior diplomat in Brussels disclosed that Paris linked the demand to a potential prisoner release deal involving French nationals held in Azerbaijan.
Luxembourg quickly followed suit, seizing upon the demand by Paris to insist that if sanctions were lifted on Usmanov, then they should be lifted for Fridman as well. Fridman, a Russian-Israeli banking magnate, is suing the Grand Duchy for $16bn (£12bn) for freezing his assets under EU measures. Other diplomats cited the figure as 15 billion euros ($17 billion).
The maneuver infuriated other member states who argue that granting carve-outs for political leverage establishes a dangerous precedent.
“It really sends the signal that you can blackmail your way to delisting,”
an unnamed EU diplomat, via Yahoo
Another diplomat added: It’s shocking that France is the one blocking it all. The Kremlin seized on the EU standoff to say it backed taking Usmanov and Fridman off the blacklist, and that the bloc should lift sanctions on all Russian businessmen
.
Last-Minute Opposition From Latvia and Immediate Outcry From Kyiv
The diplomatic wrangling nearly collapsed at the finish line. Latvia, facing parliamentary elections on October 3, mounted a last-minute objection to the exemptions on Monday, with its prime minister announcing the opposition. Latvia’s prime minister, Andris Kulbergs, said late on Monday night that he could not accept the proposed compromise and instructed his foreign minister to enter talks with Paris and Brussels to find a solution. Diplomats said Latvia had finally agreed to drop its veto after days of bitter opposition.
Ukrainian officials condemned the decision immediately. Ukrainian President Volodymyr Zelenskyy took to social media to criticize the concessions.
“No name on the sanctions list is there by accident: each one represents a reason why this war started and continues to this day.”
Volodymyr Zelenskyy, President of Ukraine, via The Guardian
The Ukrainian foreign minister, Andrii Sybiha, called the decision shameful and unjustifiable
on X, adding: Moscow is celebrating because it got what it wanted: a sense of impunity, the humiliation of the EU, and division among Europeans.
Broadening the 19th Package Against Moscow’s War Economy
While the oligarch exemptions dominated political discourse, the European Commission welcomed the adoption by EU Member States of its 19th package of sanctions against Russia. The sweeping new measures substantially increase economic pressure on the Russian war economy, targeting key sectors such as energy, finance, the military industrial base, special economic zones, as well as enablers and profiteers of its war of aggression.
- A total ban on imports of Russian Liquified Natural Gas (LNG) as of 1 January 2027 for long-term contracts, and within six months as of the entry into force of the sanctions for short-term contracts.
- Full transaction bans on major companies Rosneft and Gazprom Neft, eliminating the exemption for Rosneft’s and Gazprom Neft’s oil and gas imports into the EU.
- The addition of 117 vessels to Russia’s shadow fleet list, bringing the total subject to a port access ban and a ban on receiving services to 557.
- Measures targeting financial services and infrastructure (including for the first time crypto), as well as trade, alongside additional sanctions imposed across the shadow fleet value chain, including on Litasco Middle East DMCC.
The EU continues conducting outreach to flag states to ensure that ship registers do not allow these tankers to sail under their flag, signaling that friction over enforcement mechanisms will likely persist.