EU member states were unable to finalize a deal on Monday that would have lifted sanctions against Russian oligarchs Alisher Usmanov and Mikhail Fridman, with talks set to continue in Brussels.
Earlier, several diplomats indicated that member states had provisionally agreed to remove the two from the EU blacklist as part of a compromise to extend sanctions on roughly 3,000 other persons and entities linked to the Ukraine conflict.
However, the agreement failed to secure final approval, as a diplomat told AFP that Latvia lodged a last‑minute objection.
Diplomats said EU ambassadors would reconvene at 06:00 GMT on Tuesday to attempt to reach a settlement.
The 27‑member bloc has been racing to extend its sanctions regime before a late‑Tuesday deadline, after France and Slovakia advocated for Russian‑Uzbek billionaire Usmanov’s removal from the blacklist.
Luxembourg seized on Paris’s demand that any sanction relief for Usmanov must be extended to Fridman as well.
Parisian officials have cited national‑security concerns to justify their request concerning Usmanov, though they have declined to disclose details publicly.
The Financial Times reported that the demand may be tied to a possible prisoner‑exchange deal involving French nationals detained in Azerbaijan.
Luxembourg has advocated for Fridman’s removal, diplomats said, noting that he is suing the country for roughly €15 billion ($17 billion) over the freezing of his assets under EU sanctions.
More hawkish EU members, such as Poland and the Baltic states, vehemently opposed easing the sanctions, arguing that pressure on Russia should be intensified.
In exchange for supporting the compromise, they secured an agreement to keep the sanctions in force for three years, rather than the earlier six‑month extensions.
Ukraine reacted angrily to the prospect of the EU lifting sanctions on the two prominent Russian businessmen.
Stability Remains Crucial
Foreign Minister Andriy Sybiga condemned the move as unacceptable and warned it would send the wrong signal to Moscow when pressure should be heightened.
He added that, conversely, sanctions should be tightened.
Several EU diplomats stressed that, despite the dispute over Usmanov, there is broad consensus that EU sanctions must not be allowed to expire.
EU foreign policy chief Kaja Kallas urged member states on Monday to keep sanctions targeting Russia in place amid the Ukraine war.
She told reporters in New York that sanctions are a core pillar of the EU’s response to Russia’s war, aimed at depriving Moscow of funding.
She added that officials hope to conclude negotiations on extending the sanctions quickly and have the rollover take effect promptly.
Kallas noted that stability requires sanctions to remain in place for a longer period, she said on the sidelines of the UN General Assembly.
The EU sanctions list includes prominent figures such as Russian President Vladimir Putin and Foreign Minister Sergei Lavrov.
Metals tycoon Usmanov and banking magnate Fridman were among dozens of Russian businessmen filing lawsuits against the EU over the sanctions.
Both were placed on the sanctions list shortly after Russia’s 2022 invasion of Ukraine, based on allegations that their enterprises funneled substantial revenue to the Kremlin.
