The European Union (EU) is facing a major challenge as Hungary is threatening to block the renewal of sanctions against around 2,000 Russian individuals. These sanctions include travel restrictions and the freezing of assets belonging to politicians and business figures believed to have supported Russia’s war efforts in Ukraine. The sanctions are due to expire on Saturday unless all 27 EU countries agree to extend them for another six months.
Hungary’s demand? The removal of one specific name from the list—Mikhail Fridman. If the EU does not comply, Hungary has made it clear that it will not allow the sanctions to be renewed, potentially leaving those individuals free to travel and access their assets again.
EU ambassadors are currently in discussions to find a solution. Several countries, especially those in the Baltic region, strongly oppose any changes to the sanctions. They argue that now is not the time to ease pressure on Russia, especially before any potential ceasefire negotiations.
The Power Struggle Inside the EU
Hungary, led by Prime Minister Viktor Orbán, has long been known for its closer ties to Russia compared to other EU nations. This is not the first time Hungary has tried to block, delay, or weaken EU measures against Moscow. However, this time, it has drawn support from another EU country—Luxembourg.
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Mikhail Fridman, the person at the center of Hungary’s demand, made his fortune in Russia before moving to London about ten years ago. Last year, he went to court in the EU, arguing that he should not be on the sanctions list. In April 2024, the EU’s general court ruled in his favor, saying that there was not enough evidence linking him to the Russian government. However, despite this ruling, Fridman remains under a second round of EU sanctions due to his continued business presence in Russia.
Hungary initially pushed for multiple names to be removed from the list, including other Russian billionaires. However, after negotiations, it dropped some of those demands but remained firm on Fridman’s case.
Legal Battles and Economic Implications
Fridman has taken legal action against the EU, seeking billions in damages over the sanctions. He, along with business partner Petr Aven, argued that they no longer have the economic influence in Russia that the EU claimed when sanctioning them. Both men sold their shares in Alfa-Bank, Russia’s largest private bank, and its sister insurance company last year. They hoped this move would help remove them from the sanctions list.
Despite this, the EU continues to keep them under restrictions, arguing that they still meet the criteria for sanctions. Latvia has even appealed the court’s decision that originally ruled in Fridman’s favor, while Fridman himself is fighting against the EU’s second set of sanctions against him.
Meanwhile, another major EU sanctions issue looms. The freezing of almost €200 billion in Russian sovereign assets will also need to be renewed in July. With Hungary’s latest move, it remains unclear how smoothly these future negotiations will go.
For now, the EU faces a major test of unity. If Hungary does not back down, the sanctions on nearly 2,000 Russians could lapse this weekend, potentially allowing sanctioned individuals to regain financial and travel freedoms.
