EU court upholds sanctions against five Russian oligarchs
The Court of Justice of the European Union has dismissed appeals by five Russian oligarchs and upheld the freezing of their assets. The case concerns businessmen operating in Russia who are subject to EU sanctions.
The ruling was reported by European Pravda.
Following the start of Russia’s war against Ukraine in February 2022, the Council of the European Union introduced restrictive measures against Russian businessmen involved in sectors of the economy that provide a significant source of revenue for the Russian government.
In this context, Dmitry Pumpyansky, Tigran Khudaverdyan, Viktor Rashnikov, Dmitry Mazepin and German Khan, who were placed under restrictive measures, filed cases with the EU General Court. After their claims were dismissed in 2023, they appealed to the Court of Justice of the European Union.
In its ruling delivered on Thursday, the Court dismissed all appeals.
The Court clarified that it is the “sectors of the economy”, rather than leading businessmen involved in those sectors, that provide a substantial source of revenue for the Russian government.
The ruling also explains that the concept of “influence” of businessmen should be understood in light of the economic context in which they operate, regardless of any links they may have with the Russian government.
“It is precisely because of their importance to the Russian economy that these individuals are likely to contribute, at least indirectly, to financing destabilising actions against Ukraine, by supporting the profitability or development of the sectors in which they are involved,” the Court stated.
The Court further noted that the legality of the criterion used as a basis for imposing restrictive measures can only be challenged if that criterion is manifestly inappropriate. Such a criterion cannot be considered unlawful if it targets categories of persons who, even indirectly and regardless of any personal conduct, have an objective connection with a third country against which the European Union seeks to impose sanctions.
In these cases, the Court found that there is an objective link between, on the one hand, prominent businessmen involved in sectors that are profitable for Russia and, on the other hand, the objective of increasing pressure on the country and the costs associated with its actions to destabilise Ukraine.
The EU court also criticised the unfreezing of funds for Hungary.
It was also reported that China has expressed support for Hungary.
According to Politico, the EU is considering ways to overcome Hungary’s veto on Ukraine’s accession.
It should be noted that the EU may need to launch an “economic revolution” amid tensions with the United States and China.
The EU is also preparing a special format for Ukraine’s accession.
