# Diplomatic Tensions Flare as European Union Delists Two Prominent Russian Billionaires From Sanctions Roster

> Ukraine has strongly condemned the European Union's move to delist two influential Russian businessmen from its sanctions regime, a compromise reached after intense diplomatic maneuvering and concessions within the bloc.

**Type:** article · **Category:** Europe · **Published:** 2026-09-22 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/europe/european-union-ki-pabndiyon-ki-suchi-se-do-rusi-arabapatiyon-ko-hatane-para-ukraine-ne-jatai-kari-apatti-36721 · **Language:** English
**Tags:** European Union, Russia Ukraine War, Alisher Usmanov, Mikhail Fridman, Sanctions Relief, Latvia, Ukraine Diplomacy

The European Union has moved to lift sanctions on two prominent Russian business figures who were originally targeted in the wake of Russia's full-scale military invasion of Ukraine in 2022. The decision, which emerged following intense closed-door negotiations among member states, has triggered immediate condemnation from officials in Kyiv, who argue that loosening restrictions undermines collective Western resolve and rewards Kremlin-aligned figures.

## French and Luxembourgish Interventions Drive Delisting
The push to remove the two businessmen from the sanctions register was spearheaded by France and Luxembourg, each presenting distinct rationales. Paris actively campaigned for the delisting of Russian-Uzbek billionaire Alisher Usmanov, citing national security concerns as the driving justification. Diplomatic reporting has additionally linked the French position to sensitive, ongoing negotiations involving a potential prisoner exchange arrangement with Azerbaijan. When Brussels originally froze Usmanov's assets in 2022, European authorities designated him as a pro-Kremlin figure with exceptionally close links to Russian President Vladimir Putin. Usmanov has contested that characterization from the outset, publicly condemning the punitive measures as fundamentally unfair.

Concurrently, Luxembourg pushed for the removal of Russian-Israeli financier Mikhail Fridman. Fridman, who was born in Ukraine, is widely recognized as the principal founder of Alfa Group, a major investment conglomerate boasting significant assets in the banking and energy domains. The European Union had identified him as a pivotal financier who actively facilitated the operations of Putin's inner circle. Throughout the conflict, Fridman has refrained from making any direct, unequivocal condemnation of Putin regarding the hostilities in Ukraine. Facing frozen holdings across Europe, Fridman initiated formal litigation against Luxembourg seeking the restitution of his blocked assets, a factor that added legal and diplomatic pressure on the Grand Duchy.

## Latvian Resistance Yields Multi-Year Sanctions Package
The proposed delisting initially faced fierce resistance within the European bloc, primarily from Latvia. During a preliminary session of EU ambassadors on Monday, Latvian representatives exercised their veto power to block the arrangement. Riga's skepticism was deeply rooted in prior regional experience with Fridman's long-time business partner, Russian-Latvian entrepreneur Pyotr Aven. In 2022, Latvian authorities stripped Aven of the country's highest state decoration after he refused to condemn the armed aggression against Ukraine.

By Tuesday, however, Latvia shifted its diplomatic stance from an outright veto to an abstention following substantial negotiations that yielded major structural concessions. Under the final compromise, the European Union agreed to secure a comprehensive three-year extension for sanctions applied to roughly 3,000 other targeted individuals and entities. For the remaining approximately 2,600 sanctioned parties, this marks a fundamental shift from the previous mechanism, which required unanimous re-approval votes every six months, a schedule that routinely exposed the alliance to renewed political friction and procedural gridlock.

## Security Guarantees and Direct Rebuke From Kyiv
Latvian Prime Minister Andris Kulbergs clarified the domestic calculations behind Riga's concession, stating that France had agreed to enter formal discussions regarding Latvia's participation in a French nuclear deterrence framework. Furthermore, Paris committed to reinforcing its physical military footprint within Latvian territory. While these bilateral security arrangements satisfied Riga's defensive requirements, they did not diminish the backlash emanating from Ukraine.

Ukrainian Foreign Minister Andriy Sybiha criticized the European decision on social platform X, stating that Moscow was celebrating an outcome that offered a sense of impunity, delivered a humiliation to Brussels, and exposed deep fractures among European partners. Sybiha urged individual EU member states not to let the matter rest, advocating that capitals enact unilateral national sanctions against both Usmanov and Fridman. Latvia confirmed that it intends to implement domestic measures against both figures regardless of the bloc-wide exemption.

## Kremlin Reactions and Broader Geopolitical Implications
In Moscow, Kremlin spokesperson Dmitry Peskov welcomed the prospect of Usmanov and Fridman being excised from the punitive framework. Peskov asserted that all sanctions enacted by Brussels against Russian citizens are inherently illegitimate, maintaining that every Russian national currently listed should have their restrictions rescinded entirely. The contentious compromise highlights the mounting legal, logistical, and political complexities European governments confront as they attempt to sustain long-term economic pressure while managing the conflicting domestic and regional priorities of sovereign member states.

## What this means for you
The selective lifting of European sanctions introduces fresh complexities into corporate compliance systems, regional defense posture, and international asset management.

- **Across India:** Indian corporate entities and banks trading with European and Eurasian partners will observe lower compliance friction involving these specific conglomerates. However, financial teams must verify whether individual jurisdictions maintain separate unilateral blacklists before executing cross-border transactions.
- **Global Financial Compliance:** Multi-jurisdictional compliance departments must recalibrate their screening algorithms to reflect the delisting at the European level. The emergence of fragmented national restrictions in states like Latvia will create cross-border operational risks for compliance officers.
- **Energy and Asset Markets:** The release of legal pressure on major holding groups could influence how underlying banking and industrial assets are handled across international jurisdictions. Investors may anticipate increased asset restructuring by entities previously tied up in European litigation.
- **Long-Term Sanctions Stability:** Securing a three-year extension for roughly 3,000 remaining listed individuals and entities removes the volatile six-month renewal cycle. This brings long-term legal predictability to corporate supply chains navigating European commercial boundaries.

## Why this happened
The delisting resulted from a combination of targeted national security objectives, mounting legal pressures on individual member states, and strategic diplomatic bargaining.

- **Bilateral Strategic Interests:** France pursued Usmanov's removal citing national security interests linked to delicate prisoner release negotiations with Azerbaijan. Meanwhile, Luxembourg faced active court challenges from Fridman demanding the unfreezing of his corporate and personal assets.
- **Latvian Security Trade-Off:** Latvia initially used its veto power because Fridman's business partner Pyotr Aven had already been stripped of state honours for failing to denounce the invasion. Riga ultimately conceded after securing French commitments for increased military presence and talks on joining France's nuclear deterrence framework.
- **The Cost of Consensus:** The European Union faced an exhausting procedural hurdle of renewing sanctions on thousands of targets every six months by unanimous consent. By offering concessions on two contentious names, the bloc successfully locked in sanctions against roughly 3,000 other targets for a stable three-year period.

## Questions & Answers

### 1. Which two oligarchs is the European Union removing from its sanctions list?
The European Union is taking steps to remove Russian-Uzbek billionaire Alisher Usmanov and Russian-Israeli businessman Mikhail Fridman from its sanctions list.

### 2. How did Ukraine react to the delisting decision?
Ukrainian Foreign Minister Andriy Sybiha called the move unacceptable, arguing it creates a sense of impunity in Moscow and exposes European division.

### 3. Why did France and Luxembourg push for their removal?
France cited national security concerns tied to an Azerbaijan prisoner deal, while Luxembourg acted amid Fridman's lawsuit seeking the return of frozen assets.

### 4. Why did Latvia drop its veto against the agreement?
Latvia abstained after France agreed to strengthen its military presence in Latvia and initiate talks on Latvia joining a French nuclear deterrence framework.

### 5. What happens to the remaining individuals on the sanctions register?
Sanctions on roughly 3,000 other individuals and entities have been extended for three years, replacing the previous requirement for renewal every six months.

### 6. What was Russia's official response to the move?
Kremlin spokesperson Dmitry Peskov welcomed the delisting, maintaining that European sanctions are illegal and should be lifted for all Russian citizens.

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