Slovakia and Hungary Seek to Remove Oligarchs from Sanctions List

Ultimatum Before Sanctions Expire

Slovakia and Hungary have found themselves in open conflict with the rest of the European Union. Both countries are conditioning their approval for the extension of individual EU sanctions against Russia on the removal of two names from the sanctions list: Russian-Israeli banker Mikhail Fridman and Russian-Uzbek billionaire Alisher Usmanov. Sanctions against more than 2,700 Russian individuals and entities expire on Sunday, March 15 — and their extension requires unanimous consent from all 27 member states.

European ambassadors attempted to reach an agreement at a meeting in Brussels on Wednesday, but without success. According to diplomats present, the Slovak demand was "particularly controversial." Another attempt to reach an agreement is scheduled for Friday, March 14.

Who are these Oligarchs?

Alisher Usmanov is one of the richest Russians, founder of the USM Holdings conglomerate, owner of one of the largest yachts in the world, and a long-time close ally of Vladimir Putin. Mikhail Fridman is the co-founder of Alfa Group, one of the largest Russian financial groups. Both were placed on the EU sanctions list shortly after the Russian invasion of Ukraine in February 2022.

Arguments of Bratislava and Budapest

Slovak Foreign Minister Juraj Blanár admitted before parliamentarians that Slovakia is actively seeking the removal of both men from the list. The government argues that the evidence for their inclusion is legally weak, and refers to a precedent from 2024 when Slovak businessman Jozef Hambálka was removed from sanctions. Budapest has added its own demand to this position, and both countries are jointly blocking the adoption of the 20th package of new sanctions against Russia.

Opposition politician Ivan Korčok condemned the situation, saying that "Slovakia is defending Russian interests." Progressive Slovakia described the government's actions as "collaboration and betrayal."

Erdogan's Letter and Diplomatic Background

Interests outside the EU are also behind the effort to remove Usmanov. Turkish President Recep Tayyip Erdogan sent a letter to Prime Minister Fico on March 2, asking for his support in removing the oligarch from the sanctions list. Usmanov is of Russian-Uzbek origin and closely associated with Turkey and Central Asian states — Azerbaijan, Kazakhstan, Kyrgyzstan, and Uzbekistan. These countries, united in the Organization of Turkic States, have long lobbied for his removal.

What is at Stake

The consequences of a potential blockage are extremely serious. If all 27 members do not extend the sanctions by March 15, they will automatically expire — and frozen funds will be released not only to Fridman and Usmanov, but also to Vladimir Putin, Foreign Minister Sergei Lavrov, and thousands of others. According to diplomats, the remaining 25 member states are "firmly" against any politically motivated removal from the list.

The dispute over sanctions is taking place against the backdrop of broader tensions: Slovakia and Hungary accuse Ukraine of deliberately disrupting oil supplies through the Druzhba pipeline and are also blocking an EU loan of €90 billion for Kyiv.

Precedent with Far-Reaching Consequences

The decision of the ambassadorial round on Friday could set an important precedent. If the EU yields to the pressure of two members and politically removes oligarchs from the list, it will weaken the credibility of the entire sanctions mechanism. If, on the other hand, Slovakia or Hungary blocks the sanctions, the Union will find itself in an unprecedented situation — without sanctions against Russia at all.