Berliner Boersenzeitung - EU agrees to lift sanctions on Russian oligarchs Usmanov, Fridman

As time ticked down to a deadline, diplomats said that Latvia agreed to drop its veto after days of bitter opposition to efforts to secure the exemptions led by France.

Ukraine has lashed out against the push to remove the asset freezes and visa bans on the two billionaires, arguing the European Union should instead be ratcheting up pressure on Moscow.

The agreement sees the EU's sanctions on some 3,000 other individuals and entities over the war in Ukraine extended for three years. The list includes President Vladimir Putin.

"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."

EU countries had been wrangling furiously after France joined Slovakia in demanding Russian-Uzbek billionaire Usmanov be removed from the blacklist.

Luxembourg then seized upon the demand by Paris to insist that if sanctions were lifted on Usmanov, then they should be lifted for Fridman as well.

Officials in Paris have cited "national security" concerns for their request on Usmanov, but refused publicly to give details.

A senior diplomat in Brussels told AFP that Paris explained the demand was linked to a potential prisoner release deal involving French nationals held in Azerbaijan.

Luxembourg has pushed for Fridman to be removed. Diplomats said the move comes as he is suing the country for 15 billion euros ($17 billion) for freezing his assets under EU sanctions.

The demand from France in particular riled other EU member states who argue that removing people for political reasons sets a dangerous precedent.

"It really sends the signal that you can blackmail your way to delisting," said one EU diplomat talking on condition of anonymity.

"It's shocking that France is the one blocking it all."

The Kremlin seized on the EU standoff to say it backed taking Usmanov and Fridman off the blacklist, and that the bloc should lift sanctions on "all Russian businessmen".

- 'Need stability' -

Without the agreement, the EU risked seeing the sanctions lapse.

Now the agreement to prolong the sanctions for 36 months -- up from the previous six-month extensions -- means the EU should skip this particular headache for the forseeable future.

EU top diplomat Kaja Kallas insisted that the bloc needed "stability" by settling the future of its sanctions.

Metals tycoon Usmanov and banking magnate Fridman are among dozens of Russian businessmen suing the EU over the sanctions.

Both were added to the sanctions list after Russia's invasion of Ukraine in 2022 over allegations that their businesses provided significant revenues to the Kremlin.

(B.Hartmann--BBZ)