EU talks stall over French and Luxembourg push to delist Russian oligarchs Usmanov and Fridman

Negotiations stall over individual exemptions

European Union ambassadors failed to finalize an agreement on Monday night to renew the bloc's sanctions regime against Russia over the war in Ukraine. A provisional compromise had emerged on Monday afternoon to extend asset freezes and travel bans covering nearly 3,000 individuals and entities. That arrangement required unanimous backing from all 27 member states before entering into force. Latvia submitted a last-minute objection during the evening session, preventing the agreement from receiving final approval. With the existing sanctions regime facing an expiration deadline late on Tuesday, ambassadors agreed to resume deliberations in Brussels at 06:00 GMT.

Demands from Paris and Luxembourg

The diplomatic deadlock followed specific delisting requests submitted by France, Slovakia, and Luxembourg. France and Slovakia asked fellow member states to remove Russian-Uzbek billionaire Alisher Usmanov from the sanctions list. French representatives cited unspecified national security considerations to European diplomats without providing detailed explanations in public. A French diplomatic source stated that Paris sought to respond positively to international partners who had approached France regarding Usmanov. According to reporting by the Financial Times, the French request connects to negotiations for a prisoner release involving French nationals detained in Azerbaijan. Luxembourg subsequently demanded that Russian businessman Mikhail Fridman also be removed from the blacklist if Usmanov received an exemption. Fridman is currently pursuing a 15 billion euro (17 billion dollar) lawsuit against Luxembourg over assets frozen under the European Union sanctions framework.

Compromise terms and regional opposition

Hawkish member states, including Poland and Baltic nations, resisted easing the restrictions, arguing that economic pressure on Moscow must not be diluted. To secure a broader compromise, diplomats structured a deal that would extend the remaining sanctions list for three years rather than the standard six-month renewal cycle.

Ukrainian officials strongly rejected any individual exemptions for the businessmen. Ukrainian Foreign Minister Andriy Sybiga stated that removing individuals from the blacklist undermines the broader sanctions policy.

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

Ukrainian President Volodymyr Zelenskyy had also warned the previous week against easing measures or granting concessions to Russian oligarchs.

Diplomatic response and next steps

European Union foreign policy chief Kaja Kallas addressed the sanctions negotiations from New York on the sidelines of the United Nations General Assembly. Kallas emphasized that asset freezes and financial curbs remain central to limiting Moscow's revenues while European officials prepare a separate, additional sanctions package.

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

Kallas noted that European countries face an increase in sabotage attacks and airspace violations aimed at discouraging support for Ukraine. She told reporters that Russia's economy represents one of its weakest points, requiring higher costs from European allies. Because European Union rules require unanimity among all 27 member states for sanctions policy, envoys in Brussels must resolve Latvia's objection on Tuesday morning before the rollover deadline expires.