Stories
Russian Tycoons Scrutinize How Usmanov, Fridman Evaded EU Sanctions
- •Russian tycoons are examining how Alisher Usmanov and Mikhail Fridman were exempted from EU sanctions, though most see limited immediate applicability to their own situations.
- •The EU's surprise exemptions for Usmanov and Fridman are largely attributed to particular circumstances, including sustained lobbying by key EU member states like France and Luxembourg.
- •Some Russian businessmen plan to study Fridman's case, hoping it creates a precedent for their legal challenges, with investment arbitration cited as a potential strategy.
- •France's push to exempt Usmanov reportedly involved a prisoner deal with Azerbaijan, while Luxembourg sought to lift sanctions on Fridman amidst a $16 billion arbitration claim.
- •Other billionaires worry about a potential backlash from EU governments, fearing increased difficulties for Russian businesses still operating in Europe.
Key Questions Answered
Alisher Usmanov and Mikhail Fridman were exempted from the EU's sanctions regime following sustained lobbying by key EU member states, with France pushing for Usmanov's removal—reportedly linked to a prisoner deal involving Azerbaijan releasing a jailed French national—and Luxembourg responding to France's lobbying by seeking to lift sanctions from Fridman amid a $16 billion arbitration claim.
At least two surveyed Russian businessmen plan to study Mikhail Fridman’s example closely to find a precedent for their own legal challenges. According to sanctions law experts, investment arbitration can effectively pressure governments into talks or delisting, especially when backed by large claims.
Vladyslav Vlasiuk, the Ukrainian president’s commissioner for sanctions policy, suggested the EU should sanction Vladimir Potanin and steel tycoon Vladimir Lisin following the decision to lift restrictions on Usmanov and Fridman.
