The European Union's efforts to renew its sanctions list have hit a fresh obstacle, with Luxembourg now linking its own demands to France's controversial push to delist Russian oligarch Alisher Usmanov. The move has raised fears of a domino effect among member states, each pursuing national interests at the expense of collective policy.
At a meeting of EU ambassadors on Friday, Luxembourg argued that if France succeeds in removing Usmanov from the sanctions list, then Mikhail Fridman—a Russian businessman locked in a legal battle with the Grand Duchy—should also be delisted. Fridman, who has been sanctioned by Brussels for his alleged ties to the Kremlin, is suing Luxembourg over the implementation of EU sanctions and seeking compensation for frozen assets estimated at around $16 billion.
France, backed by Slovakia, had earlier demanded Usmanov's removal from the list ahead of the renewal deadline. Paris's request was reportedly linked to a bid to secure the release of French citizens detained in Azerbaijan, a revelation that has frustrated other member states. Slovakia has long advocated for the delisting of both Usmanov and Fridman, who deny any wrongdoing.
Under EU rules, the sanctions list—currently covering about 1,600 individuals and entities—must be renewed every six months with unanimous support from all 27 member states. The deadline was set to expire on Tuesday but has been extended by one week to allow for a diplomatic solution. EU ambassadors are scheduled to reconvene on Monday to try to break the impasse.
National interests vs. collective unity
The Luxembourg demand has intensified concerns that individual member states are using the sanctions mechanism to advance their own agendas. "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.
For many in Brussels, the episode underscores the fragility of the unanimity principle. If one country can secure a delisting through bilateral bargaining, others may follow suit, eroding the credibility of the entire sanctions regime. The situation is particularly delicate given the ongoing war in Ukraine and recent Russian actions targeting EU countries.
Luxembourg's stance is rooted in its own legal confrontation with Fridman. The businessman, who co-founded Alfa Group, has challenged the EU sanctions before the European General Court and is pursuing compensation from Luxembourg for the freezing of his assets. His legal team argues that the sanctions are unjustified, a claim the EU and Luxembourg reject.
The deadlock comes at a time when the EU is also grappling with broader economic pressures. As EU finance chiefs confront energy shock and inflation, the sanctions renewal has become entangled with wider geopolitical and economic considerations. The bloc has also been navigating complex diplomatic efforts, such as the recent US-brokered prisoner release in Belarus, which involved sanctions relief.
Meanwhile, the United States has taken a more aggressive stance, with Congress passing sweeping Russia sanctions that include tariff threats against China and India. This divergence in approach between Washington and Brussels adds another layer of complexity to the EU's internal deliberations.
Diplomats in Brussels are now watching closely to see whether France and Luxembourg can find common ground, or whether the deadlock will force a broader rethink of how the EU manages its sanctions policy. Some officials argue that the current system, which requires unanimity, is increasingly vulnerable to manipulation by member states with narrow interests.
"The sanctions list is not a bargaining chip for bilateral disputes," said one senior EU official, speaking on condition of anonymity. "If we allow that, we undermine the very foundation of our foreign policy."
As the extended deadline approaches, the pressure is mounting on all sides to reach a compromise. But with Luxembourg digging in and France unwilling to back down, the prospect of a clean renewal looks increasingly uncertain. The coming days will be crucial in determining whether the EU can maintain its united front against Moscow.
