Austria seeks EU sanctions waiver for Oleg Deripaska assets

Austria’s bid to unfreeze €2 billion in assets linked to sanctioned Russian businessman Oleg Deripaska has sparked a rift within the European Union. The proposal, reported by EUobserver, aims to compensate Raiffeisen Bank International for losses incurred in Russia. Austria’s largest lender wants to acquire Deripaska’s 24 % stake in Strabag, an Austrian construction group, to offset a €2 billion damages ruling by a Russian court.

The plan has drawn opposition from several EU member states, including Poland, the Czech Republic, and the Baltic and Nordic countries, which warn that it would set a “dangerous precedent.” They argue that allowing the release of frozen funds would undermine the effectiveness of EU sanctions imposed on Russia after the escalation of the Ukraine conflict in 2022. The proposed derogation would enable national authorities to authorize the release of frozen funds attributable to three blacklisted companies and two Russian businessmen, Deripaska and Dmitry Beloglazov. The EU Council claims that Deripaska and Beloglazov used these companies to sidestep the asset freeze.

Austria’s proposal requires unanimous approval from all EU member states. If approved, it would effectively enforce the Russian court’s ruling, allowing Raiffeisen to claim Deripaska’s frozen Strabag stake. This move could encourage similar claims by Russian entities, as EU companies still have €70 billion to €100 billion in assets in Russia that could be leveraged in comparable schemes.

Sanctions on Deripaska, founder of aluminium giant Rusal, have been in place since 2018. He argues that Western sanctions are outdated and counter‑productive, failing to weaken Russia while risking harm to the global economy. Austria’s attempt to unfreeze the assets highlights the challenges EU member states face in balancing economic interests with a unified stance on sanctions against Russia.

The proposal will be discussed by EU ambassadors in Brussels, and its outcome is likely to have significant implications for the EU’s sanctions policy and its relations with Russia. The decision will also be closely watched by other EU companies with assets in Russia, which could be affected by similar claims in the future.