FT: EU seeks compromise over sanctions on Russian billionaire

EU capitals are looking for a compromise to resolve a dispute with France, which is seeking the removal of Russian-Uzbek billionaire Alisher Usmanov from the bloc’s sanctions list in connection with a proposed prisoner-release deal involving Azerbaijan, the Financial Times reports.

The report said nearly 3,000 individuals and entities are currently subject to EU sanctions over links to Russia’s war against Ukraine. The measures must be renewed unanimously.

France and Slovakia blocked a proposed 12-month extension of the sanctions this week, calling for Usmanov to be removed from the list. France has linked its demand to a proposed agreement on the release of prisoners with Azerbaijan.

The deadlock prompted an emergency one-week extension of the sanctions on Monday, while EU officials have since been working to find a solution.

Ambassadors from the bloc’s 27 member states are due to meet again today in an effort to resolve the impasse.

According to two diplomats briefed on the negotiations, Ireland, which currently holds the rotating presidency of the Council of the EU, and the European External Action Service (EEAS) have proposed possible compromises that would leave Usmanov under sanctions while easing some restrictions, including the asset freeze and EU travel ban.

People familiar with the discussions said several countries, including Germany and Italy, had indicated they might be prepared to accept France’s request. However, many other member states remain sceptical about using EU sanctions to achieve national objectives.

A third group is firmly opposed to any changes, arguing that such a move could weaken the sanctions regime and establish a precedent for similar requests in the future.

“If member states start unpacking sanctions and taking off sharp edges it creates a legal precedent which would be very useful for other oligarchs fighting EU sanctions in court,” one EU diplomat clarified, adding that they did not see a solution that would satisfy all sides.

Usmanov, who has longstanding business interests in Russia and ties to Russian President Vladimir Putin, has been under EU sanctions since shortly after Russia launched its full-scale invasion of Ukraine in 2022.

By Bakhtiyar Abbasov