The EU agreed on September 22 to extend sanctions on roughly 3,000 Russian individuals and entities for three years, after Latvia dropped its veto in exchange for removing oligarchs Alisher Usmanov and Mikhail Fridman from the list. Ukraine condemned the delistings as a dangerous concession.
The European Union narrowly avoided a lapse in its Russia sanctions regime after Latvia withdrew its opposition to a compromise deal. The agreement removes two high-profile oligarchs, Alisher Usmanov and Mikhail Fridman, from the bloc's sanctions list in exchange for locking in restrictions on about 3,000 other individuals and entities tied to Russia's war in Ukraine.
Why Usmanov and Fridman came off the list
Usmanov and Fridman had both been sanctioned since early 2022, shortly after Russia's full-scale invasion of Ukraine. France pushed for Usmanov's removal, and the Financial Times reported the delisting was tied to a secret prisoner release deal involving Azerbaijan. Luxembourg, meanwhile, backed Fridman's removal after he sought $16 billion in damages from the Grand Duchy over sanctions-related losses.
In return, the EU secured a structural change to the sanctions regime itself. The renewal cycle shifts from every six months to every three years, meaning the current package now runs until approximately September 2029.
Latvia's abstention broke the deadlock
Latvia had stood as the lone holdout blocking the compromise. According to a statement published by the Latvian government, France promised Riga closer cooperation on air defence and access to its nuclear deterrent to overcome the opposition. Latvia then chose to abstain rather than veto, clearing the unanimity threshold EU sanctions decisions require.
Kyiv and Moscow react
Ukraine's reaction was swift. Kyiv views the delistings as a concession that signals the EU's resolve can be chipped away through persistent legal challenges and bilateral diplomacy.
Russia, by contrast, welcomed the move. According to Financial Times: "We consider these sanctions to be illegal", Kremlin spokesperson Dmitry Peskov told reporters ahead of the EU decision.
Diplomats told the Financial Times that France's push generated considerable ill will in other capitals, warning that exempting Usmanov sets a precedent for other sanctioned Russians to challenge their listing. It marked the first time sanctions tied to the full-scale invasion had been explicitly linked to a prisoner release, and the first time France had pushed for an exemption.
Sources: Crypto Briefing, Financial Times
Trading involves risk.
Risk Disclaimer
