Russian oligarchs study Fridman and Usmanov cases as possible template to escape EU sanctions
After the EU removed Alisher Usmanov and Mikhail Fridman from its sanctions list following lobbying by France and Luxembourg, other Russian billionaires are studying the cases as a possible precedent for their own legal challenges. The lifting was part of a compromise that extended nearly 3,000 other sanctions measures for 36 months, and coincided with Azerbaijan's pardoning of a French citizen detained on espionage charges — a connection France has not publicly acknowledged. Latvia and the UK are preparing national-level measures to limit the two oligarchs' access to Europe.
Key points
- The EU lifted sanctions on Alisher Usmanov and Mikhail Fridman after lobbying by France and Luxembourg; the move threatens to derail renewal of nearly 3,000 other sanctions measures.
- A compromise extended all remaining sanctions on individuals and companies on the list for 36 months in exchange for removing the two oligarchs.
- At least two Russian billionaires told Bloomberg they intend to study Fridman's case hoping it sets a precedent for their own disputes.
- France's campaign in support of Usmanov and Luxembourg's push for Fridman were each linked to separate interests: Azerbaijan's pardoning of French citizen Martin Ryan (in France's case) and a roughly $16 billion arbitration claim Fridman filed against Luxembourg.
- Azerbaijan pardoned French citizen Martin Ryan, imprisoned on espionage charges, the day after the EU agreed on the concession regarding Usmanov; France has not publicly linked the two events.
- Latvia said it is preparing national sanctions against Usmanov and Fridman; according to Bloomberg, Britain will retain its sanctions against both.
- Ukraine's Presidential Commissioner for Sanctions Policy suggested the EU should re-sanction the two businessmen; former Foreign Minister Volodymyr Ohryzko called for moving from unanimity to qualified majority voting in key EU foreign policy decisions.
Why it matters
The removal of Usmanov and Fridman is the first time sanctioned Russian billionaires have been taken off the EU list, and other Russian oligarchs are studying the cases as a potential template for their own legal challenges. It also exposed how individual member states — France and Luxembourg — can shape EU sanctions policy through lobbying tied to their own national interests, including a prisoner release in Azerbaijan. The episode is already prompting responses from other EU members and Ukraine, including national-level sanctions and calls for the EU to shift away from unanimity in foreign policy decisions.
What happened
The EU removed Alisher Usmanov and Mikhail Fridman from its sanctions list after lobbying campaigns by France (for Usmanov) and Luxembourg (for Fridman). The two became the most prominent Russians excluded from the EU sanctions regime to date, and the first such cases after extended lobbying by a key EU member state. The deal was struck as a compromise: in exchange for lifting the two oligarchs' sanctions, the EU extended restrictions on roughly 3,000 other individuals and companies on the list for 36 months.
According to people familiar with the matter, France pushed for lifting Usmanov's sanctions as part of arrangements with Azerbaijan over the release of French citizen Martin Ryan, who had been detained on espionage charges. Azerbaijan pardoned Ryan the day after the EU agreed to the concession. France has not publicly connected the two events. Luxembourg, for its part, faced a roughly $16 billion arbitration claim from Fridman over the freezing of his assets under EU sanctions; Fridman argues Luxembourg violated an investment protection treaty.
Bloomberg surveyed Russian billionaires and people close to them, finding that at least two intend to study Fridman's case hoping it creates a precedent for their own disputes. Sergey Glandin, a partner at Moscow-based BGP Litigation, said the Fridman case could serve as a kind of instruction for others.
Reactions inside Europe and Ukraine followed quickly. Latvia said it is preparing national sanctions against Usmanov and Fridman; Bloomberg reported Britain will retain its sanctions against both. Ukraine's Presidential Commissioner for Sanctions Policy, Vladyslav Vlasiuk, suggested the EU should re-sanction the two businessmen. Former Foreign Minister Volodymyr Ohryzko argued that EU countries could effectively neutralize the EU-level lifting by imposing national restrictions, characterized the situation as political pettiness, and called for moving from unanimity to qualified majority voting in key foreign policy and security decisions. Ohryzko also said the decision could encourage other EU members to seek exceptions from sanctions lists in pursuit of their own interests.
How Ukrainian sources describe it
Both Ukrainian sources lead with the message that Russian oligarchs are studying the Fridman–Usmanov precedent in hopes of replicating it to escape EU sanctions. One of the articles frames the lifting of sanctions as a politically motivated deal, emphasizing Ukraine's Presidential Commissioner for Sanctions Policy Vladyslav Vlasiuk's position that the EU should re-sanction the two businessmen. Both articles highlight national sanctions by individual EU members (Latvia, the UK) and a possible shift from unanimity to qualified majority voting as Ukrainian-favored responses to the EU's decision.
Where reporting differs
The two Ukrainian sources differ on whether the lifting of sanctions on Usmanov and Fridman was tied to Azerbaijan's pardoning of Martin Ryan. One reports that, according to people familiar with the situation, France pushed for lifting the sanctions as part of arrangements with Azerbaijan over the release of the prisoner. The other presents former Foreign Minister Volodymyr Ohryzko's view that France wanted to free 'some spy', possibly for domestic political purposes tied to President Macron. France has not publicly linked the two events.
Background
Since the start of Russia's full-scale invasion of Ukraine in 2022, most wealthy Russians have moved assets and companies back to Russia and have been investing domestically in banks, consumer businesses, industrial assets, and technology companies. France's campaign in support of Usmanov caused disputes among EU members that threatened the renewal of nearly 3,000 other sanctions measures; the compromise extended those measures for 36 months in exchange for lifting sanctions on Usmanov and Fridman. Luxembourg faced an approximately $16 billion arbitration claim from Fridman over the freezing of his assets under EU sanctions; Fridman argues Luxembourg violated an investment protection treaty. Ukraine's Presidential Commissioner for Sanctions Policy suggested that after lifting restrictions on Usmanov and Fridman, the EU should impose new sanctions, while former Foreign Minister Volodymyr Ohryzko argued that EU countries could effectively neutralize the EU lifting by imposing national restrictions and called for moving from unanimity to qualified majority voting in key foreign policy decisions.