Description: The European Union (EU) has announced its decision to lift sanctions on two Russian oligarchs, Alisher Usmanov and Mikhail Fridman, while also extending the sanctions on almost 3 thousand individuals and companies accused of supporting Russia’s invasion of Ukraine. Usmanov’s sanctions were lifted on behest of France, who requested the lifting due to a prisoner exchange that was conditioned by Azerbaijan. Usmanov reportedly knows Ilham Aliyev, the Azerbaijani President, as they both studied in Moscow’s diplomatic school. After the lifting of sanctions, Azerbaijani President, Ilham Aliyev, pardoned French national Martin Ryan, who was previously serving a 10 – year prison sentence on espionage charges. Fridman’s sanctions were lifted on the request of Luxembourg which is being sued by Fridman to the amount of $17 billion for freezing his assets in the country. Ukraine hastily criticized the lifting of sanctions as both President Zelensky and Foreign Minister Sybiha stated that the move was unjustifiable and shameful. The EU for its part stated that it reached a difficult compromise and pledged to expand the sanctions portfolio with 1.6 thousand new entities while putting the 3 thousand entities on a sanctions timeframe of 36 months or until 2029.
Impact: The lifting of sanctions on two of Russia’s wealthiest oligarchs highly likely attests to the existing divisions within the Union, since member countries prioritize pursuing separate national interests instead of the EU’s united sanctions strategy. The situation also likely undermines Ukraine diplomatically and politically, especially after Trump officially invited Putin to join the G20 Summit this year in Miami. The invitation, combined with the current developments likely emboldens Russia to adopt a more aggressive approach and posture towards any future negotiating concessions, such as the more recent proposals regarding an energy and grain capacities ceasefire. The delisting is highly likely due to the high profile of the French individual, who most likely worked for the French secret services, while Luxembourg’s insistence is likely connected to the high – profile lawsuit that Fridman threatened the country with. Considering the wealth of the oligarchs there is realistic possibility that both of them can resort towards lobbying efforts inside the Union on the behest of Putin and Russia.