EU talks stall over French and Luxembourg push to exempt Russian tycoons from sanctions

Deadline pressure in Brussels

European Union ambassadors will resume negotiations in Brussels at 06:00 GMT on Tuesday to resolve a dispute over renewing the bloc's sanctions list before a late Tuesday deadline. The sanctions regime imposes travel bans and asset freezes on nearly 3,000 individuals and corporate entities linked to the Russian military campaign in Ukraine. Under EU treaty rules, any extension or modification of sanctions requires the unanimous approval of all 27 member states. A provisional compromise emerged on Monday afternoon, but it failed to receive formal confirmation after Latvia lodged a late objection. Diplomats must secure an agreement during Tuesday's morning session to prevent the legal framework of the sanctions package from lapsing.

French and Luxembourg delisting demands

The diplomatic rift centres on demands from France and Slovakia to remove Russian-Uzbek billionaire Alisher Usmanov from the sanctions list. French representatives invoked unspecified national security grounds during closed-door discussions with EU partners. A French diplomatic source stated that Paris is addressing a specific national security matter and intends to respond positively to international partners who approached France regarding Usmanov. The Financial Times reported that the French initiative connects to negotiations aimed at securing the release of French nationals detained in Azerbaijan. Following the French proposal, Luxembourg demanded the removal of Russian businessman Mikhail Fridman. Fridman is currently pursuing a 15 billion euro ($17 billion) legal claim against Luxembourg for freezing his assets under EU regulations.

Objections from Baltic and eastern nations

Several member states, led by Poland and Baltic governments, objected to removing the two tycoons, arguing that sanctions against Moscow should be tightened rather than weakened. In earlier talks on Monday, these governments agreed to the exemptions on the condition that the entire sanctions regime be extended for three years rather than the traditional six-month intervals. Latvia subsequently withheld its approval on Monday evening, halting the agreement before the 21:00 deadline. EU foreign policy chief Kaja Kallas addressed the dispute during a press briefing in New York on the sidelines of the United Nations General Assembly, stating that sanctions remain central to European strategy.

Sanctions are a core pillar of our response to Russia's war.

Kallas stated that European governments face an increase in Russian airspace violations and sabotage incidents, requiring continued economic pressure.

Ukrainian reaction and next steps

The Ukrainian government strongly condemned the proposed removal of the two Russian businessmen from the blacklist. Ukrainian Foreign Minister Andrii Sybiga warned that exempting the billionaires would compromise Western pressure on Moscow and called instead for expanded measures.

Their removal from the list is unacceptable and would send the wrong signal to Moscow at a time when pressure needs to increase.

Ukrainian President Volodymyr Zelensky had also cautioned against the move during the prior week, stating that it is not the time to rescue Russian oligarchs from penalties or offer concessions to Russia. Talks in Brussels will continue among the 27 EU ambassadors on Tuesday morning, with envoys seeking unanimous approval before the sanctions expire at the end of the day.