The EU Court has confirmed the legality of freezing the assets of Russians subject to sanctions
The EU Court of Justice has ruled that the freezing of financial and material assets belonging to sanctioned individuals—who are linked to them not directly but indirectly through trust structures—is fully consistent with European law.
The EU’s highest court issued three landmark rulings in similar cases involving attempts by citizens of the Russian Federation to circumvent sanctions.
This move has definitively closed the legal loopholes that sanctioned individuals used to hide their assets in Europe.
The first precedent, case number “C-483/23,” concerned four commercial companies controlled by a firm registered in the Bermuda Islands.
This entity, in turn, belongs to a large Bermudian trust, where a Swiss company acts as the official trustee.
The Russian founder of this trust was promptly removed from the official list of beneficiaries just before he came under strict sanctions in 2022.
However, Italian authorities still froze all related assets, considering them sufficiently linked to this individual.
The other two cases were heard by the court as part of the consolidated proceedings “C-428/24” and “C-476/24.”
The first case involved the Italian company “FZ AR,” which is part of an international group and is also indirectly owned by a trust based in the Bermuda Islands.
The original beneficial owner, referred to in the materials as “ZU,” and the subsequent official owner—his wife “TU”—were added to the sanctions lists in 2022.
The second case involved the luxury yacht “Sailing,” owned by the company “SX,” which is controlled by a trust with the same beneficial owner, “TU.”
Italian regulatory authorities blocked the aforementioned property, acting on the principle that it remains de facto linked to the trust’s actual beneficiaries.
The Russian owners attempted to challenge these actions in an Italian court, which subsequently sought an official interpretation from the Court of Justice of the European Union.
The national judges were interested in whether the legal concept of ownership and control in this context could extend to the trust’s settlor or beneficiaries.
EU Court Upholds Sanctions Against Five Russian Oligarchs
The EU Court criticizes the unfreezing of funding for Hungary.
Recall that Chinahas come to Hungary’s defense.
How the EU plansto overcome Orbán’s veto on Ukraine’s accession — Politico.
Recall that the EU is set to launch an “economic revolution” due to tensions with the US and China.
