Judgment of the General Court (First Chamber) of 11 September 2024

Uitspraak

Judgment of the General Court (First Chamber) of 11 September 2024 –
Mordashova v Council

(Case T‑497/22)

( Common foreign and security policy – Restrictive measures taken in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine – Freezing of funds – Restrictions on entry into the territory of the Member States – List of persons, entities and bodies subject to the freezing of funds and economic resources and subject to restrictions on entry into the territory of the Member States – Applicant’s name included and maintained on the list – Concept of ‘association’ – Article 2(1), in fine, of Decision 2014/145/CFSP – Concept of ‘benefit obtained from a leading businessperson operating in Russia’ – Article 2(1)(g) of Decision 2014/145 – Plea of illegality – Obligation to state reasons – Error of assessment – Proportionality – Right to property – Legal certainty – Principle of non-discrimination – Right to be heard )

1.      Acts of the institutions – Statement of reasons – Obligation – Scope – Restrictive measures taken in view of the situation in Ukraine – Freezing of funds of certain persons and entities having regard to the situation in Ukraine – Obligation to identify in the statement of reasons the specific and concrete elements justifying that measure – Decision falling within a context known to the person concerned, enabling him or her to understand the scope of the measure taken against him or her – Whether summary statement of reasons sufficient

(Art. 296, second para., TFEU; Charter of Fundamental Rights of the European Union, Art. 41(2)(c); Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/883, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/878, 2022/1529, 2023/571 and 2023/1765)

(see paragraphs 49-56)

2.      Common foreign and security policy – Restrictive measures against certain persons and entities in view of the situation in Ukraine – Freezing of funds – Rights of the defence – Notification of inculpatory evidence – Subsequent decision maintaining the name of the applicant on the list of persons covered by those measures – That decision based on new factors not appearing in the initial decision – New evidence sent to the applicant – Infringement of the right to be heard – None

(Charter of Fundamental Rights of the European Union, Art. 41(2)(a); Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/1529, 2023/571 and 2023/1765)

(see paragraphs 64-69)

3.      European Union – Judicial review of the legality of the acts of the institutions – Restrictive measures taken in view of the situation in Ukraine – Scope of the review – Proof that the measure is well founded – Obligation on the competent EU authority to establish, in the event of challenge, that the reasons relied on against the persons or entities concerned are well founded – Inclusion on the lists based on a specific, precise and consistent body of evidence – Error of assessment – None

(Charter of Fundamental Rights of the European Union, Art. 47; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/883, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/878, 2022/1529, 2023/571 and 2023/1765)

(see paragraphs 76-79, 103, 122)

4.      European Union – Judicial review of the legality of the acts of the institutions – Restrictive measures taken in view of the situation in Ukraine – Scope of the review – Inclusion of the applicant on the list annexed to the contested decision by reason of his or her association with another person included on that list – Publicly available documents – Probative value – Principle of the unfettered evaluation of evidence – Inculpatory and exculpatory evidence communicated

(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/883, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/878, 2022/1529, 2023/571 and 2023/1765)

(see paragraphs 80, 81)

5.      Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Person, entity or body associated with a person included on the list annexed to the contested decision – Concept of association – Common interests – Financial ties – Included – Asset transactions for the purpose of succession – Irrelevant

(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/329, (CFSP) 2022/883, (CFSP) 2022/1530 and (CFSP) 2023/572, Art. 2(1); Council Regulations No 269/2014, Art. 3(1), 2022/330, 2022/878, 2022/1529 and 2023/571)

(see paragraphs 89-91, 96, 97, 99, 101)

6.      Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Leading businesspersons operating in Russia and their close family members or other natural persons benefiting from them – Concept of benefit – Non-negligible benefit of any kind

(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2023/1094 and (CFSP) 2023/1767, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), 2023/1089 and 2023/1765)

(see paragraphs 109, 110, 116, 119-122)

7.      Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Prohibition on entry and transit and freezing of funds of certain persons and entities in view of the situation in Ukraine – Restriction of the right to property – Whether permissible – Conditions – Restriction laid down by law – Respect for the essence of the right invoked – Pursuit of an objective of general interest recognised as such by the European Union – Observance of the principle of proportionality – Conditions met

(Charter of Fundamental Rights of the European Union, Arts 17 and 52(1); Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/883, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767, Art. 2(3) and (4); Council Regulations No 269/2014, Arts 4(1), 5(1), 6(1) and 15(1), 2022/878, 2022/1529, 2023/571 and 2023/1765)

(see paragraphs 131-140)

8.      Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Person, entity or body associated with a person included on the list annexed to the contested decision – Compliance with the principle of legal certainty requiring clarity, precision and foreseeability of the effects of legal rules

(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/329, (CFSP) 2022/883, (CFSP) 2022/1530 and (CFSP) 2023/572, Art. 2(1); Council Regulations No 269/2014, Art. 3(1), 2022/330, 2022/878, 2022/1529 and 2023/571)

(see paragraphs 143, 144)

9.      Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Freezing of funds of certain persons and entities having regard to the situation in Ukraine – Restrictive measures not adopted by the Council against other persons, entities or bodies in an identical situation – Breach of the principle of equal treatment – None

(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/329, (CFSP) 2022/883, (CFSP) 2022/1530 and (CFSP) 2023/572, Art. 2(1); Council Regulations No 269/2014, Art. 3(1), 2022/330, 2022/878, 2022/1529 and 2023/571)

(see paragraphs 145-147)

Operative part

The Court: