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Luxembourg has deepened the deadlock over the EU’s sanction list renewal, tying a French demand to delist Russian businessman Alisher Usmanov to the case of Mikhail Fridman, who is suing the Grand Duchy over his frozen assets.
Last week, Paris joined Slovakia in demanding the removal of Usmanov from the sanctions list pending renewal. Now Luxembourg says that if Usmanov comes off the list, Fridman should too.
“France risks setting off a race to the bottom, which is the absolute opposite of what the EU is signalling politically, given the Russian escalation in Ukraine but also against EU member states in recent weeks,” an EU diplomat told Euronews on condition of anonymity.
Slovakia has long pushed to delist both Usmanov and Fridman, oligarchs whom Brussels placed on the sanctions list for being close to the Kremlin. Both men deny the allegations.
Under EU rules, the list of 1,600 sanctioned entities and individuals must be renewed with the unanimous support of the bloc’s member states every six months. The deadline was set to expire on Tuesday, but was extended by one week to allow time for a diplomatic solution.
Earlier this week, it also emerged that France’s request to delist Usmanov was intended as a trade for the release of French citizens detained in Azerbaijan, a revelation that caused frustration among other member states.
Luxembourg raised the stakes further on Friday, telling a meeting of EU ambassadors that if France succeeds in delisting Usmanov, Fridman should be delisted as well.
Fridman is locked in an ongoing legal battle with Luxembourg over its implementation of EU sanctions, seeking compensation for his frozen assets in the country, which are estimated to run to around $16bn. He has also sued the Council of the EU before the European General Court.
For other member states, Luxembourg’s latest demand illustrates exactly why national interests should not be allowed to shape individual sanctions listings, since doing so risks a domino effect in which other capitals begin pushing their own agendas.
EU ambassadors will reconvene on Monday. A Luxembourg official did not reply to Euronews’ request for comment.
“Putin only speaks the language of power. If Paris really wants to push this through, France risks making the EU look weak,” the diplomat added.