The ongoing negotiations to renew sanctions against approximately 2,000 individuals due to the Russian invasion of Ukraine have encountered significant challenges, particularly from Hungary.

The permanent representatives of the 27 EU member states have been engaged for days in discussions aimed at renewing measures that involve travel bans and asset freezes for those listed, many of whom are presumed to hold varying degrees of responsibility in the invasion that began in February 2022. Reports indicate efforts are underway to remove certain individuals from this sanctions list.

Among them is Mikhail Fridman, a major shareholder of LetterOne, which owns 77.7% of the DIA supermarket chain.

Recent disclosures suggest that Hungary has been actively maneuvering to secure Fridman's removal from the sanctions list, with support from Luxembourg.

However, multiple diplomatic sources express skepticism regarding the likelihood of Fridman being delisted, pointing out that Hungary, often regarded as the EU's most Kremlin-friendly nation, has not prioritized his case in the ongoing negotiations in Brussels.

On Thursday, ambassadors convened to discuss the matter, stating that although talks are continuing, a follow-up meeting is scheduled for Friday.

Unanimity among member states is required for any agreement on sanctions.

Fridman, who also holds Israeli citizenship, resigned from the board of LetterOne shortly after being sanctioned following the onset of the Ukraine conflict.

Unlike other sanctioned Russian oligarchs who divested their stakes in the firm, Fridman chose not to sell his shares.

Alongside fellow financier Petr Aven, Fridman recently divested shares in Alfa Bank, which has closer ties to Moscow, in hopes that this action could facilitate his removal from the sanctions list.

Aven and Fridman collectively held nearly 50% of LetterOne's shares, along with significant support from the Mark Foundation for Cancer Research.

If sanctions were lifted, Fridman could effectively resume his leadership position within LetterOne, where he previously served as chairman prior to his resignation.

The shares of other sanctioned individuals, German Khan and Alexey Kuzmichev, have been acquired by Andrey Kosogov, a co-founder of the holding company, who remains unaffected by EU restrictions.

Since its acquisition of DIA three years ago, LetterOne has asserted the chain's 'Spanish' identity and its disassociation from any sanctioned individuals by informing Spain's National Securities Market Commission (CNMV) that 'no individual shareholder of LetterOne, whether individually or through agreements with other shareholders, exerts control' over the firm.

The investment fund has been advocating for the removal of sanctions against Aven and Fridman, noting that their restrictions have adversely impacted LetterOne's operations, thereby harming the economies of both the European Union and the United Kingdom, where they are also sanctioned.

Originally from Ukraine, Fridman has resided in London since 2014, one year after the firm’s establishment.

However, in 2023, he returned to Russia and has been spotted at public events.

In 2024, the General Court of the European Union indicated that the grounds for Fridman's sanctions were not 'sufficiently substantiated' and deemed the measure 'unjustified.' Nonetheless, he has remained on the list since the Council of the European Union reinforced the rationale behind his sanctions status.

A legal appeal is currently underway at the Court of Justice of the European Union.