The European Union faces a deepening deadlock regarding the renewal of its sanctions list after Luxembourg intervened to complicate the process. The dispute centers on the status of Russian businessman Alisher Usmanov, whose removal from the sanctions list was recently requested by France, and Mikhail Fridman, who is currently involved in a legal battle against the Grand Duchy over frozen assets.
Last week, France aligned itself with Slovakia in calling for Usmanov to be delisted as the sanctions renewal approaches. In response to this push, Luxembourg informed a meeting of EU ambassadors on Friday that any decision to delist Usmanov must also apply to Fridman. Both men, who have been sanctioned by Brussels for their alleged ties to the Kremlin, have consistently denied these claims.
The EU requires unanimous support from all member states to renew its list of 1,600 sanctioned individuals and entities every six months. Although the deadline was scheduled for Tuesday, it was extended by one week to provide space for a diplomatic resolution. An EU diplomat, speaking on the condition of anonymity, expressed concern that France's actions could trigger a negative trend, stating, "France risks setting off a race to the bottom, which is the absolute opposite of what the EU is signalling politically, given the Russian escalation in Ukraine but also against EU member states in recent weeks."
Reports earlier this week suggested that France’s request regarding Usmanov was linked to an effort to secure the release of French citizens currently detained in Azerbaijan, a revelation that has reportedly caused frustration among other EU members. Meanwhile, Mikhail Fridman is pursuing legal action against Luxembourg for its implementation of EU sanctions, seeking compensation for assets estimated at $16 billion. He has also initiated a lawsuit against the Council of the EU in the European General Court.
With EU ambassadors set to reconvene on Monday, the diplomatic pressure continues to mount. Addressing the potential impact of these moves, the diplomat warned, "Putin only speaks the language of power. If Paris really wants to push this through, France risks making the EU look weak." A representative for Luxembourg did not provide a comment when approached by reporters.
