Hungary is demanding that Russian oligarch Mikhail Fridman be removed from the EU sanctions list, otherwise it threatens to block the continuation of European Union sanctions against about 2,000 Russians.
Points of attention
- Hungary is bargaining with the EU to lift its veto on extending sanctions against Russia by demanding the removal of Russian oligarch Mikhail Fridman from the EU sanctions list.
- The European Union is facing a critical decision on whether to extend sanctions against about 2,000 Russians until March 15, with Hungary's demand for Fridman's removal posing a significant challenge.
- Despite efforts to find a compromise, negotiations between Hungary and the EU have so far failed to reach a resolution, raising concerns about the potential expiration of sanctions on March 15.
Hungary Bargains with the EU for Russian Oligarch Fridman
Travel restrictions and asset freezes imposed by the European Union on politicians and businessmen who supported or facilitated Russia's war against Ukraine expire on March 15 unless all 27 EU countries agree to extend them for another six months.
According to four people familiar with the matter, Hungary's ambassador to the EU demanded that Friedman, who made his fortune in Russia before moving to London a decade ago, be removed from the list as Budapest's price, allowing all other sanctions to continue.
EU ambassadors meet in Brussels on March 13 after several days of negotiations that have so far failed to produce a compromise.
Ukraine's most loyal allies, including the Baltic states, oppose any easing of EU restrictions on Moscow, especially before any US-brokered ceasefire talks are concluded.
Luxembourg supports efforts to remove Friedman from the list, three officials said. Last year, Friedman filed a lawsuit against Luxembourg, where he holds his stake in London-based investment firm LetterOne, seeking $15.8 billion in sanctions-related damages.
Hungary initially demanded the removal of eight names from the list, including other Russian billionaires such as Alisher Usmanov and Fridman's longtime partner Petr Aven. But now Budapest, according to sources, is insisting on Fridman's removal.
Brussels, however, is informally preparing for a scenario in which Hungary blocks the continuation of anti-Russian sanctions, and the sanctions packages may cease to be in effect from March 16.
Currently, European negotiators want to use all opportunities to find non-public tools to persuade Hungary and close the sanctions decision on time.
