BRUSSELS, Sept 22 (Reuters) - Latvia said it could not accept a proposed deal that would lift EU sanctions on Russia-linked billionaires Alisher Usmanov and Mikhail Fridman in return for keeping thousands of other individuals and businesses under sanctions.
Under the proposal, sanctions on Usmanov and Fridman would be lifted but those on some 3,000 other Russia-linked individuals and entities would be renewed for three years.
All the sanctions - composed of asset freezes and travel bans, imposed due to Russia's war in Ukraine - are due to expire at midnight on Tuesday, unless the European Union's 27 member countries take a unanimous decision to renew them.
"Extending sanctions for 36 months would be the right step. However, the price for it must not be simply striking both individuals from the sanctions list. Latvia cannot accept such an offer," Latvian Prime Minister Andris Kulbergs posted on X late on Monday night.
FRANCE SPARKED ANGER WITH MOVE TO LIFT USMANOV SANCTIONS
To the surprise and anger of many of its EU partners and Ukraine, France this month joined Slovakia in pushing for sanctions to be lifted on Russian-Uzbek businessman Usmanov. Luxembourg then demanded the same treatment for Fridman, a Russian, according to diplomats.
France made its move after coming under what it said was pressure from Azerbaijan, as the country has detained at least two French nationals, three European diplomats told Reuters last week. A senior Azerbaijani diplomat on Friday rejected those assertions.
Both men have disputed the cases against them and taken legal action to try to have the sanctions removed.
Fridman is claiming $16 billion from Luxembourg in a case that has gone to arbitration. EU diplomats said Luxembourg argued that its case to maintain EU sanctions on Fridman could be weakened if sanctions were lifted on Usmanov.
Kulbergs said he would convene an emergency cabinet meeting on Tuesday to discuss the issue. He said Latvia would work with Brussels and Paris "to find a solution suitable for Latvia's interests".
Ambassadors from the EU's member countries were due to restart talks to try to resolve the impasse on Tuesday morning, diplomats said.
(Reporting by Andrew Gray and Lili Bayer; Editing by Alex Richardson)
