EU drops sanctions for Russian oligarchs Usmanov and Fridman

The European Union on Tuesday reached a compromise to prolong sanctions for around 3,000 Russian individuals, entities and companies — but it also resulted in the lifting of sanctions on two Russian oligarchs, Alisher Usmanov and Mikhail Fridman.

It all comes after lengthy negotiations ahead of a Wednesday deadline to extend the sanctions, which required unanimity among EU countries to be approved.

"The compromise will involve an extension of the regime for 36 months, until 22 September 2029," a spokesman for Ireland, which holds the EU's rotating presidency, said. 

"The decision was also taken to delist certain individuals under the regime," it added.

Previously, the sanctions were subject to six-month extensions, so Tuesday's agreement allows the EU to avoid another squabble over the sanctions for three years.

Ukraine denounced the EU's removal of oligarchs Usmanov and Fridman from its Russia sanctions list as "shameful and unjustifiable."

"Moscow is celebrating because it got what it wanted: a sense of impunity, the humiliation of the EU, and division among Europeans," Ukrainian Foreign Minister Andrii Sybiha said on social media.

"Wars end through resolve and strength, not concessions to the aggressor's entourage," Ukrainian President Volodymyr Zelenskyy wrote on social media. 

Zelenskyy did say he was "grateful" to EU Commissioner Ursula von der Leyen for "her readiness to work on adding more Russian names to the EU sanctions list".

Kyiv has called on EU countries to impose "national" sanctions on the two oligarchs.

France and Luxembourg sought exemptions

France was one of the countries demanding the removal of Russian-Uzbek billionaire Usmanov from the sanctions list.

Officials in Paris explained the decision as having to do with "national security" concerns. The French government has not provided any additional details.

According to AFP, diplomatic sources say the demand was linked to a potential prisoner release deal involving French nationals held in Azerbaijan, whose regime is close to Usmanov. 

Meanwhile, Fridman's sanctions exemption was put forth by Luxembourg.

Sources say the move comes as Fridman sues Luxembourg for €15 billion ($17 billion) over his frozen assets, due to EU sanctions.

Who are Usamov and Friedman?

Usmanov and Fridman are two of Russia's best-known oligarchs, and both have a net worth of $14 billion and 16 billion respectively. They both are known to have close ties to Vladimir Putin.

The Uzbek-born Usmanov made his fortune in the metals industry and in telecom. He currently owns the USM holding company, as well as MegaFon, one of Russia's main mobile phone operators.

For his part, Fridman, has made his fortune as founder and one of the shareholders of Alfa Group, which includes Alfa Bank, Russia's largest and most important private commercial bank.

Fridman also co-founded investment firm LetterOne in Luxembourg and stepped down from its board of directors in 2022 after being targeted by European Union sanctions.

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