Latvia Blocks EU Bid to Lift Oligarch Sanctions

Latvia has blocked a proposed EU compromise that would remove Russian-linked billionaires Alisher Usmanov and Mikhail Fridman from the bloc’s sanctions list in exchange for extending restrictions on thousands of other people and entities for three years.Latvian Prime Minister Andris Kulbergs announced the decision in a post on X late Monday, Sept. 21. Reuters reported that EU ambassadors would resume negotiations on Tuesday in an attempt to resolve the dispute.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official.“As long as Russia continues the war, Europe’s pressure must become stronger, not more convenient for the Kremlin,” Kulbergs said.He described a 36-month extension of the broader sanctions regime as the correct step but said Latvia could not accept removing Usmanov and Fridman as the price of securing it.Kulbergs said he would convene an emergency cabinet meeting on Tuesday and hold consultations with representatives from Brussels and Paris to find a solution acceptable to Latvia.Entire sanctions list could be at riskUnder the proposed compromise, the EU would lift sanctions against Usmanov and Fridman while renewing restrictions on roughly 3,000 other Russia-linked individuals and entities for 36 months.Those restrictions include EU asset freezes and travel bans imposed in response to Russia’s full-scale invasion of Ukraine.However, sanction decisions require the unanimous support of all 27 EU members. Unless an agreement is reached, the current listings are due to expire at midnight on Tuesday. Other Topics of Interest Ukrainian Forces Use New STING S Interceptor to Down Russian Geran-5 The interceptor is undergoing combat trials as Ukraine develops new defenses against increasingly fast Russian jet-powered drones. Latvia’s refusal therefore leaves the broader sanctions regime temporarily unresolved, not only the restrictions against the two billionaires.The bloc had already extended the measures by seven days after member states failed to agree on their usual six-month renewal. Kyiv Post previously reported that disagreements centered on attempts to remove Usmanov and Fridman from the blacklist.An initial report on Monday indicated that EU ambassadors had reached a compromise to extend the sanctions for three years while delisting the two men. However, Latvia’s subsequent refusal showed that the proposal had not secured the unanimous national approval required for adoption.France and Luxembourg seek delistingsFrance joined Slovakia in calling for sanctions against Usmanov to be lifted, surprising and angering several other EU members and Ukraine.European diplomats told Reuters that France acted after coming under pressure from Azerbaijan, which is holding at least two French nationals. France described its position as a national security matter and said it was responding to requests from international partners.A senior Azerbaijani diplomat rejected claims that Baku had pressured Paris.Luxembourg separately demanded that Fridman receive the same treatment. The Russian billionaire is seeking $16 billion from Luxembourg through arbitration, while EU diplomats said the country feared its legal position could be weakened if Usmanov alone were removed.Both billionaires have disputed the EU’s allegations against them and launched legal challenges seeking the removal of sanctions.The EU sanctioned both men in 2022. It described Usmanov as having particularly close ties to Russian President Vladimir Putin and said Fridman had supported actions or policies threatening Ukraine’s territorial integrity and sovereignty.Baltic states warn against concessionsOther Baltic countries have also opposed lifting sanctions, arguing that doing so under political or legal pressure would create a dangerous precedent.Lithuanian Foreign Minister Kęstutis Budrys told Reuters that delisting the billionaires would send several signals – all bad.Most opponents nevertheless appeared willing to accept the compromise to secure the three-year renewal for the rest of the blacklist. However, Latvia was the country that withheld its approval when the proposal was submitted to national governments on Monday evening.Ukrainian Prime Minister Sergii Koretskyi also urged the EU not to ease its restrictions while Russian attacks against Ukraine continue.“Ukraine is under attack right now. Europe cannot treat Russia’s enablers as friends. Sanctions must stay. Full stop,” he posted ​on X.The three-year extension would be significantly longer than the usual six- or 12-month renewal period and was proposed as a concession to countries concerned about repeatedly reopening negotiations.EU ambassadors were expected to continue talks on Tuesday morning, with the future of the entire sanctions list dependent on reaching unanimity before the deadline. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 97% of readers are outside of Ukraine – make it truly Ukraine’s global voice.