By Ilona Bērziņa
EU member states must decide by the 15th of September whether to extend existing sanctions. However, discussions are expected in some cases over the criterion of a “leading Russian businessman” — and whether the original reason for a person’s inclusion on the sanctions list is still valid. This also concerns Russian–Latvian dual citizen and billionaire Pjotrs (Pēteris) Avens, whose representatives stated this summer that he has met all the criteria for EU sanctions to no longer apply to him.
“The criterion of an ‘influential businessman’ allows sanctioning people who have no proven ties to the Russian regime but who are wealthy,” internationally known lawyers Thierry Marembert and Aaron Bass wrote in an open letter this summer. According to them, such an approach raises concerns that the EU Council can impose sanctions without evaluating evidence and without taking human rights into account.
Meanwhile, a criterion for how “influential businessmen” can be removed from sanctions lists emerged in February this year. According to The Bell, the EU’s Court of Justice has indicated that such individuals “must demonstrably renounce any of their Russian businesses rather than simply sell them to other companies within the country.”
Renouncing assets in Russia could lead to removal from sanctions
Does giving up Russian assets automatically mean that sanctions should be lifted? BNN asked sworn attorney Andris Lazdiņš, a partner at the law firm Lazdiņš Gavars.
“It would be more accurate to say that several court cases before the EU courts have raised questions about how to interpret and apply the criteria set in Regulation No. 269/2014 for listing individuals in Annex I of the Regulation,” Lazdiņš said.
EU Council Decision (CFSP) 2025/904 of the 13th of May, 2025 states that if an individual listed in Annex I has effectively disposed of or renounced ownership, control, or economic benefit from the assets that originally justified their listing, they should be removed from Annex I.
“In other words, if a person from the Russian Federation has been listed under EU sanctions, they can be removed from that list if they have genuinely (not just formally) given up ownership and control over the companies they managed, which was the original reason for their inclusion,” Lazdiņš explained.
A “leading businessman” need not have influence over the Russian government
Asked whether the EU Council under the “g” criterion must prove that a listed person has influence over the Russian government or ties to its regime — as suggested by Advocate General Laila Medina — Lazdiņš explained that she has issued opinions in several similar cases, with a central question being how to correctly interpret and apply the “g” criterion.
This criterion allows including in the sanctions list “leading businesspersons operating in Russia,” their close family members or other individuals benefiting from them, or entrepreneurs, legal persons, entities, or bodies operating in sectors providing a substantial source of revenue to the Russian government.
“In the Advocate General’s view, the term ‘leading businessperson’ does not require that the person must have influence over the Russian government or leadership structures. The key factor is whether the person holds a leading role in a company that significantly contributes to the Russian economy. If such a link is established, the person can be sanctioned, as the aim of EU sanctions is to exert maximum pressure on Russia to end its war in Ukraine,” Lazdiņš noted.
He added that, according to the opinion, the term “leading businesspersons” is tied to the phrase “operating in sectors providing a substantial source of revenue to the Russian government.”
“From this, one can understand that for the EU Council to include a person on the sanctions list, it is sufficient to prove that the person held a leading role in a company providing significant revenue to the Russian government, regardless of whether the person actively financed the war,” said Lazdiņš, adding that the Advocate General’s opinion is not legally binding on the EU Court of Justice.
Is there a basis to remove Avens from sanctions?
So what about Latvian citizen and billionaire Pjotrs Avens? Is it enough that he has reportedly sold all his businesses in Russia and moved to live in Latvia — or does that not matter?
“Based on publicly available information, it is currently difficult to draw a definitive conclusion on whether Avens could be removed from the sanctions list,” Lazdiņš said. “If we consider the EU Council Decision (CFSP) 2025/904 of 13 May 2025, Avens could be removed from the EU sanctions list if it is established that he has genuinely relinquished all ownership and control over companies he owned in the Russian Federation. In this case, the EU Council would need to conduct a thorough assessment to confirm that Avens has indeed done so in substance, not just ‘formally’,” the lawyer explained.
Meanwhile, Avens’ representatives have stated that he is convinced he has fulfilled all the criteria for EU sanctions to no longer apply to him: he has sold all his Russian assets, lives in Latvia, and no longer engages in any business in Russia. He has also obtained permission to transfer 235.9 million euros into a frozen bank account in Latvia from funds that have not been affected by EU sanctions so far.
As reported, last year the EU Court annulled the EU Council’s decision of the 28th of February, 2022 imposing sanctions on Avens and fellow billionaire Mikhail Fridman. Shortly thereafter, Latvia — as the only EU member state — filed an appeal in these cases.
Read also: Will Latvia again agree to remove Putin’s close associates from the sanctions list?