Removing Usmanov from sanctions could make EU seem weak, Valdys says

Lithuania is “very sceptical” of removing Uzbek-Russian billionaire Alisher Usmanov from the latest sanctions list, the country’s finance minister, Taurimas Valys, said.

France requested to delist Usmanov from the blacklist last week as part of a package that could see two French nationals released from prison in Azerbaijan. The country cited national security concerns as its reason for joining Slovakia in calling for the removal, but French officials have refused to comment or provide further details.

“Regarding any loosening of sanctions, we’re very sceptical,” Valys said on Euronews’ interview programme 12 Minutes With.

The French position has complicated efforts to renew EU sanctions on Russia, which require ‌unanimous approval ⁠from all 27 member states. The latest package on the table covers almost 3,000 individuals and entities accused of supporting Russia’s full-scale invasion of Ukraine.

Vilnius argued that the timing is not right for alleviating pressure on Moscow. “The war is not over. We believe that any effort to minimise sanctions before we have a peace deal could be considered by Russia as our weakness.”

He also hinted at the fact that removing Usmanov could make Europe look divided in its support for Kyiv. The oligarch was sanctioned early on in Russia’s war against Ukraine over his “close ties” to Russian President Vladimir Putin and interests in “key sectors” of the Russian economy that provide “substantial” revenue to the state. He has denied these allegations.

“Russia should understand that we are united,” Valys said. “We see Ukraine as a part of our enlargement process. Any kind of effort to occupy more [land] or cause more damage to Ukraine is completely unacceptable.”

He added that, in fact, Lithuania supports slamming Russia with more sanctions.

However, despite most EU capitals falling in line with Vilnius’ stance on the removal of names from the sanctions list, the Irish presidency, which holds the rotating EU Council presidency, proposed a compromise to delist Usmanov as well as Mikhail Fridman, another Russian businessman.

In exchange for the removal of the oligarchs, the proposal foresees an unprecedented 36-month renewal of the sanctions regime to avoid a similar impasse in future, diplomats told Euronews. The proposal is being considered by EU diplomats in Brussels on Monday.

Urgency to break the deadlock around the sanctions is mounting, as the current short-term extension of the sanctions – EU envoys last week pushed back the expiry by seven days after failing to agree ‌on a six-month renewal – is due to expire on Tuesday if no agreement is reached.

Kyiv has also strongly condemned the push to delist Usmanov. President Volodymyr Zelenskyy and other Ukrainian officials have stated that lifting these restrictions would be an unacceptable concession.