EU extends sanctions against Russia after Latvia drops veto on oligarchs

The European Union narrowly avoided a sanctions lapse against Russia after Latvia withdrew its opposition to a compromise deal that removes two high-profile oligarchs from the bloc’s sanctions list. The agreement, reached on September 22, extends restrictions on approximately 3,000 other individuals and entities linked to Russia’s war in Ukraine, but the price of consensus was the delisting of Alisher Usmanov and Mikhail Fridman.

What the deal actually looks like

Usmanov, the Uzbek-born metals and telecoms magnate, and Fridman, a Russian-Israeli banking mogul, had both been on the EU sanctions list since early 2022, shortly after Russia’s full-scale invasion of Ukraine. Their removal was championed by France and Luxembourg, respectively, each with its own rationale.

France pushed for Usmanov’s delisting citing national security reasons. Luxembourg’s support for Fridman’s removal was reportedly tied to a $16B legal claim the businessman had lodged against the state.

In exchange for agreeing to these delistings, the EU secured a significant structural change to its sanctions regime. The renewal cycle shifts from every six months to every three years, meaning the current package will now run until approximately September 2029.

Latvia had initially blocked the compromise, standing as the lone holdout. In the end, Latvia chose to abstain rather than veto, allowing the deal to clear the unanimity threshold required for EU sanctions decisions.

Why this matters beyond Brussels

Ukraine’s reaction was swift and unambiguous. Kyiv views the delisting of Usmanov and Fridman as a dangerous concession, a signal that the EU’s resolve can be chipped away through persistent legal challenges and bilateral diplomacy.

Since February 2022, the EU has built one of the most extensive sanctions architectures in modern history, targeting thousands of Russian nationals and entities. By locking in the sanctions framework through 2029, the EU has made it considerably harder for Russia’s allies within the bloc to chip away at the regime through repeated renewal fights.

The geopolitical ripple effects

For Usmanov and Fridman specifically, delisting means the potential unfreezing of substantial European assets, renewed access to banking systems, and the ability to travel freely within the EU.

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