EU faces backlash over lifting sanctions on two Russian billionaires

Paris, France. The European Union faced a growing backlash on Wednesday after agreeing to lift sanctions on two Russian billionaires despite appeals from Ukraine. Critics said the decision weakened a pillar of support for Ukraine’s war effort and signalled that the bloc could yield to blackmail.

Sanctions decision

Following pressure from France, the EU agreed on Tuesday to end asset freezes and travel bans on Russian-Uzbek metals tycoon Alisher Usmanov and Mikhail Fridman, co-founder of one of Russia’s biggest conglomerates.

France privately told its partners that Azerbaijan was using Usmanov’s sanctions case to pressure Paris over two French citizens held there, three diplomats told Reuters. On Wednesday, Azerbaijani President Ilham Aliyev pardoned a French national jailed for espionage. Paris described the pardon as a “humanitarian gesture”.

France’s push to lift sanctions on Usmanov prompted Luxembourg to seek the same treatment for Fridman, who has filed a $16-billion claim against Luxembourg over its freeze on his assets.

Criticism and renewal

Bill Browder, a British financier and opponent of Russian President Vladimir Putin, said “every sanctioned Russian oligarch” would now seek leverage through “tinpot dictatorships around the world” to have sanctions lifted. “France just opened one helluva Pandora’s box,” he posted on X.

Diplomats said other governments felt they had little choice but to accept France’s demand, which Paris linked to national security, in exchange for renewing Russia-related sanctions on about 3,000 other people and organisations for three years. Diplomats from multiple countries said they hoped the longer renewal period would prevent similar demands soon. France was able to press its case partly because the sanctions were close to expiring.

Some of the strongest criticism within the EU came from the Baltic states. Latvia initially blocked the move before agreeing to abstain.