Latvia gives in to France's demands to lift EU sanctions on two Russian oligarchs, diplomats say

Editor's note: This is a developing story

BRUSSELS, Belgium — Latvia agreed to stop opposing a plan by Slovakia and France to remove two Russian oligarchs from EU sanctions on the afternoon of Sept. 22, three national diplomats told the Kyiv Independent.

The news comes as the Franco-Slovak push to delist Alisher Usmanov and Mikhail Fridman led to a weeks-long delay in renewing the European bloc's 3,000 sanctions on Russia.

"In maintaining the (sanctions) regime we have reached a difficult compromise," said a spokesperson for the European Council Presidency.

In exchange for the delisting, EU ambassadors have provisionally agreed to extend the sanctions for 36 months rather than the originally planned 12 months, the compromise that appeared to have been reached the previous day.

"What signal does this send? Frankly, astonishing and embarrassing," said Ukraine's sanctions chief Vladyslav Vlasiuk on social media.

All EU votes on sanctions policy require unanimity, which gave France and Slovakia leverage in securing the deal.

Initially, Latvia went public on the night of Sept. 21 to oppose the Franco-Slovak plan, with the country's Foreign Minister Baiba Braze writing on social media: "The Latvian government's stance has been unwavering. EU sanctions against Russia must be strengthened, not weakened."

That strong stance garnered the support of President Volodymyr Zelensky, who praised Latvia just two hours before Riga backed down.

Now, instead of voting against the compromise, Riga will abstain, which allows the measure to go ahead but without Latvia's blessing.

Three national diplomats said that they understand Belgium and Lithuania have also committed to abstaining, because they do not support the move, but equally cannot allow 3,000 listings to evaporate.

Riga will also impose national sanctions against Usmanov and Fridman, according to a Latvian government press release. It is not known if any other EU countries plan to do likewise.

"This was not a choice between a good and a bad solution, but between a bad and a much worse one," said Latvia's Prime Minister Andris Kulbergs.

Earlier that day, Latvia had demanded to postpone the decision for two weeks, so that the vote would be taken after an upcoming parliamentary election in the country, where delisting the two men would be a politically toxic move.

"Choosing to stand up for further sanctioning of these persons, we achieved a result that is more beneficial for Latvia, Ukraine and Europe in the long term," Kulbergs said.

The Latvian government press release goes on to mention a series of new commitments from France to Latvia, including the start of negotiations to join France's nuclear deterrence initiative, and to bolster France's military presence in the country, "especially in the field of air defense."

The two sanctioned individuals, Fridman and Usmanov, are both considered members of Russian leader Vladimir Putin's inner circle.

Fridman is a co-founder of the Russian conglomerate Alfa-Group, whose subsidiary provided insurance for vehicles used by Russian forces in Ukraine, and reportedly serviced the Main Office of Special Programs, which is responsible for guarding Putin.

The Ukrainian-born tycoon was also the owner of Sense Bank — formerly known as Alfa-Bank, one of Ukraine's largest banks — before its nationalization in 2023.

Usmanov made his fortune in metal and mining operations following the collapse of the Soviet Union. He was referred to as "one of Putin's favorite oligarchs" in the EU's original 2022 sanctions decision.

The ambassadors' agreement needs to be formally voted on in writing by national ministers. They have until 6 p.m. local time to do so.

Once passed, the sanctions renewal will last until Sept. 22, 2029.