Disagreements prevent lifting of European sanctions on two Russian businessmen

However, last-minute opposition from Latvia prevented a settlement.

Diplomats confirmed that ambassadors of EU countries would meet again on Tuesday at 06:00 GMT in an effort to reach a settlement.

The 27-nation bloc was racing to reach an agreement extending its sanctions regime before the deadline on Tuesday, after France and Slovakia pushed for the removal of Russian-Uzbek billionaire Usmanov from the blacklist, while Luxembourg insisted that Fridman should also be included.

French officials cited 'national security' concerns to justify the request to lift sanctions on Usmanov, without going into details, as the Financial Times reported that the request may be linked to a potential prisoner exchange deal involving French nationals detained in Azerbaijan.

Regarding Luxembourg's move, diplomats explained that it coincided with Fridman suing the country, demanding compensation of 15 billion euros (17 billion dollars) for the freezing of his assets under EU sanctions.

More hardline European countries, including Poland and the Baltic states, opposed easing the sanctions, calling for increased pressure on Russia.

In return for agreeing to this step under the preliminary agreement, these countries received a commitment to keep the sanctions in place for the next three years, instead of extending them every six months as previously.

- Continuing the sanctions policy -

For his part, Ukrainian Foreign Minister Andriy Sybiha condemned the move, considering the "removal of names from the list unacceptable and will send the wrong message to Moscow at a time when pressure should be increased"

He added in an electronic post, "On the contrary, sanctions should be tightened"

European foreign policy chief Kaja Kallas called on Monday for EU member states to maintain the sanctions policy imposed on Russia.

Kallas said during a press conference in New York following a meeting of EU foreign ministers that sanctions on Russia remain "at the heart" of European policy aimed at pressuring Moscow to end the war in Ukraine, noting that the goal is to deprive Moscow of funding sources.

She added that European officials are seeking to complete talks on extending sanctions to pass the decision as soon as possible.

She pointed to the need to maintain sanctions for a longer period, confirming that the EU's position has not changed. She said, "That's why we are also working on a new package of sanctions"

The EU's blacklist includes major figures such as Russian President Vladimir Putin and Foreign Minister Sergei Lavrov.

Metal industry magnate Usmanov and banking giant Fridman were among dozens of Russian businessmen who filed lawsuits against the EU over the sanctions.

Their names were included on the sanctions list shortly after the start of the Russian invasion of Ukraine in 2022, due to allegations that their companies provide significant financial revenue to the Kremlin.