EU compromise on lifting sanctions on two Russian oligarchs while extending others

Consensus Summary

The European Union reached a contentious compromise to lift sanctions on two Russian oligarchs, Alisher Usmanov and Mikhail Fridman, while extending restrictions on nearly 3,000 other individuals and entities for three years (36 months) until 22 September 2029. The decision came after intense negotiations, with France and Luxembourg securing the delistings of Usmanov and Fridman, respectively, in exchange for the longer sanctions extension. Both oligarchs were added to the sanctions list after Russia’s invasion of Ukraine in 2022, and their removal has drawn sharp criticism from Ukraine, which argues the move undermines pressure on Moscow.

The impasse arose as the EU faced a deadline to renew its sanctions regime, with Latvia initially blocking the agreement due to domestic political considerations, including upcoming elections on 3 October. France justified its demand for Usmanov’s removal by citing national security concerns tied to a potential prisoner exchange involving French nationals in Azerbaijan. Luxembourg followed suit by requesting Fridman’s delisting, as he is suing the country for freezing his assets, with claims of 15 billion euros ($17 billion) in damages. The compromise was brokered by Ireland, which holds the EU’s rotating presidency, to avoid a collapse of the sanctions framework entirely.

Key figures in the debate included Ukrainian President Volodymyr Zelenskyy, who condemned the decision as unacceptable, and EU top diplomat Kaja Kallas, who emphasized the need for 'stability' in the sanctions regime. The Kremlin welcomed the delistings, framing them as a victory that could encourage further reductions in sanctions. Meanwhile, EU diplomats expressed frustration, warning that France’s actions set a precedent where sanctions could be weakened through political pressure. Both Usmanov and Fridman, who are suing the EU over the sanctions, were described as benefiting from the compromise, though their legal battles continue.

While both ABC and the Guardian agree on the core details of the compromise, they differ slightly in their reporting of financial figures and additional context. The Guardian highlights the EU’s plan to introduce 1,600 new designations targeting the Russian military industrial complex in the coming month, a detail not emphasized by ABC. Additionally, the Guardian provides more explicit criticism from Ukraine’s foreign minister, Andrii Sybiha, who called the decision 'shameful,' whereas ABC focuses more on the diplomatic maneuvering behind the scenes. Both outlets, however, underscore the tension between national interests and the collective EU stance on sanctions.

The resolution of this standoff does not mark the end of disputes over sanctions. The Guardian notes that the EU’s 21st round of sanctions, agreed in July, faced difficulties, suggesting future rounds may encounter similar challenges. Meanwhile, the extended 36-month timeline for sanctions is intended to provide predictability, but the precedent of delisting individuals for political reasons could complicate future negotiations. Ukraine’s condemnation and the Kremlin’s celebration indicate that the decision has deepened divisions, with one side viewing it as a step toward impunity and the other as a necessary compromise to maintain unity within the EU.