European sanctions imposed on Russia two years may be lifted by the end of 2016, the chief executive of Russia's sovereign wealth fund told CNBC on Friday.

The U.S. and the European Union introduced sanctions against Russian companies and individuals with links to Moscow after Russia's annexation of Crimea in 2014. The 28-country EU will meet next month to decide whether to renew them.

EU diplomats say sanctions may be softened but extended by a further six months, according to media reports. There are signs of disagreement among EU members, with Baltic countries on Russia's borders typically keener on maintaining tough sanctions, while countries like Greece have flagged the possibility of tailing them off.