Hungary has warned it will block the extension of EU sanctions against nearly 2,000 Russians unless Mikhail Fridman is removed from the list, independent 444.hu cited the Financial Times, which cited four diplomats after a meeting of EU ambassadors on March 13.

The Hungarian government, widely regarded as the most Russia-friendly in the EU, has repeatedly obstructed EU sanctions against Moscow and delayed military aid to Ukraine. Initially, Budapest sought the removal of eight Russian oligarchs from the list, including Petr Aven and Alisher Usmanov, but ultimately has focused its demands solely on Fridman, according to the FT.

Bne IntelliNews reported earlier this week that Brussels is bracing for a potential Hungarian veto on the renewal of EU sanctions against Russia, which could unfreeze €60bn in assets and weaken Ukraine's financial support.

With the March 15 deadline approaching, EU leaders are racing to secure a unanimous agreement on extending sanctions, as failure to do so would allow sanctioned individuals to regain access to assets and move freely across Europe.

Born in Lviv, Ukraine, Mikhail Fridman rose to prominence in the 1990s after building a vast business empire through his Alfa Group, which made him a billionaire. Starting out as a window cleaner after the Soviet Union's collapse, he later founded Alfa Bank, the successful X5 retail and supermarket chain, and numerous other ventures.

He has long maintained ties to the country. Beyond his stake in Russia's Alfa Bank, he was a co-owner of Kyivstar, a major mobile operator, and held interests in Ukrainian mineral water companies. His companies have also profited from supplying Russia's National Guard, Interior Ministry, FSB, and military, a major point of contention in ongoing debates over his sanctions status.

The 60-year-old tycoon was sanctioned days after Russia's full-scale invasion in February 2022 for his Kremlin connections and alleged financial support for the invasion. In 2023, Fridman sued Luxembourg for $15.8bn in damages, claiming that EU sanctions had unfairly restricted his assets, particularly his stake in London-based investment firm LetterOne.

In April 2024, the EU's General Court annulled the sanctions, ruling that the EU had failed to prove they had directly undermined Ukraine. Despite this, the EU kept them on the list under new reasoning, classifying them as key business figures contributing significant revenue to Russia.

While Hungary pushes for Fridman's removal from the list, the Baltic states and Ukraine's strongest allies strongly oppose any weakening of sanctions on Moscow. However, Luxembourg appears to support Hungary's position, according to FT sources.

EU ambassadors will meet again on March 14 and if Hungary does not back down, foreign ministers will intervene on March 17 to put pressure on Budapest to comply.