EU renews Russia sanctions but grudgingly drops 2 oligarchs from list

France and Luxembourg caused consternation by getting sanctions lifted against two Russian billionaires. Critics worry Europe's resolve is weakening.(CN) — The European Union is extending its unprecedented sanctions regime against Russia for three more years, but it removed two Russian oligarchs from the blacklist in what critics labeled as caving in to the national interests of France and Luxembourg at the expense of Ukraine.Late Tuesday, the EU extended sanctions on more than 3,000 Russian individuals, entities and companies, but lifted sanctions against Alisher Usmanov, a Russian-Uzbek billionaire, and Mikhail Fridman, a Russian-Israeli billionaire.France reportedly sought Usmanov’s removal from the list as part of a deal with Azerbaijan over the release of two French prisoners, including a Frenchman accused of espionage. Luxembourg’s request was reportedly linked to Fridman’s legal fight to unfreeze about $16 billion in assets held in the Grand Duchy.On Wednesday, Azerbaijan’s President Ilham Aliyev announced he pardoned Martin Ryan, a Frenchman serving a 10-year sentence for espionage. Baku accused him of spying on Azerbaijan’s military activities for France.“Authoritarian regimes now have a tested method: Detain European citizens, pressure the relevant capital and the EU’s Russia policy becomes negotiable,” said Rihards Kols, a Latvian member of the European Parliament. “Pandora’s box, once opened, does not close on request.”The EU’s 27 governments faced a Tuesday deadline to unanimously agree on extending the sanctions package. Its passage was held up by Latvian Prime Minister Andris Kulbergs, who opposed lifting sanctions on the two billionaires.With the deadline looming and all the sanctions at risk, Kulbergs said he agreed to a compromise whereby sanctions would be extended for three years rather than six months, as had been done before.Also, he announced French President Emmanuel Macron agreed to start talks on placing Latvia under France’s nuclear umbrella and helping the small Baltic nation in with air defense.“For the next three years, it will be much harder for the Kremlin and its allies to try to divide Europe every six months and bargain over the future of sanctions,” Kulbergs said about the compromise.The EU’s decision to lift sanctions on the two billionaires was blasted by Ukraine and Russian opposition leaders living abroad.“No name on the sanctions list is there by accident: Each one represents a reason why this war started and continues to this day, and why our people are being killed every day,” said Ukrainian President Volodymyr Zelenskyy. He called the decision “suicidal and counterproductive.”“Moscow is celebrating because it got what it wanted: a sense of impunity, the humiliation of the EU and division among Europeans,” Ukrainian Foreign Minister Andriy Sybiga said.Lyubov Sobol, an ally of Alexei Navalny, the deceased Russian opposition leader, called the EU’s move a “serious geopolitical victory for Putin.”European leaders came under pressure from Turkish President Recep Tayyip Erdoğan and other Turkic leaders to lift sanctions on Usmanov.Since Russia invaded Ukraine in February 2022, the EU has imposed 21 packages of sanctions on Russia.The sanctions cover much of Russia’s leadership, including President Vladimir Putin and Foreign Minister Sergey Lavrov, Russian banks and businessmen, energy supplies, weapons manufacturers, Russian cargo vessels, media outlets and journalists.The sanctions have hurt Russia’s economy, but Moscow also has circumvented them through shell companies, cryptocurrencies and by continuing to trade with much of the rest of the world, including China, India and Turkey.Despite Western sanctions, China has increased its imports of Russian oil and natural gas and Russia’s so-called “shadow fleet” continues to ship oil and gas on ships insured by non-Western companies at prices above a $60 price cap imposed by Western powers.Russia also has expanded its use of alternative payment systems to replace SWIFT, an international money transfer system based in Belgium.Russia’s tactics for evading sanctions may be put to the test by a new bill signed last week by U.S. President Donald Trump empowering him to levy tariffs of up to 100% on purchasers of Russian oil and gas, including China and India.Usmanov founded USM Holding, an investment group that owns iron, steel and copper suppliers, and the Megafon telecommunications company. In the past, he was linked to the English Premier League clubs Arsenal and Everton and owned extensive properties in London.Fridman was the founder of the Alfa Group investment conglomerate, a company with major interests in energy and banking.When it imposed sanctions on the oligarchs, the EU accused both men of being close to Putin.Courthouse News reporter Cain Burdeau is based in the European Union.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads