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

Data

Court: General Court

Case date: 11 september 2024

Verdict

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 institutionsStatement of reasonsObligationScopeRestrictive measures taken in view of the situation in UkraineFreezing of funds of certain persons and entities having regard to the situation in UkraineObligation to identify in the statement of reasons the specific and concrete elements justifying that measureDecision falling within a context known to the person concerned, enabling him or her to understand the scope of the measure taken against him or herWhether 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 policyRestrictive measures against certain persons and entities in view of the situation in UkraineFreezing of fundsRights of the defenceNotification of inculpatory evidenceSubsequent decision maintaining the name of the applicant on the list of persons covered by those measuresThat decision based on new factors not appearing in the initial decisionNew evidence sent to the applicantInfringement of the right to be heardNone

(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 UnionJudicial review of the legality of the acts of the institutionsRestrictive measures taken in view of the situation in UkraineScope of the reviewProof that the measure is well foundedObligation 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 foundedInclusion on the lists based on a specific, precise and consistent body of evidenceError of assessmentNone

(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 UnionJudicial review of the legality of the acts of the institutionsRestrictive measures taken in view of the situation in UkraineScope of the reviewInclusion of the applicant on the list annexed to the contested decision by reason of his or her association with another person included on that listPublicly available documentsProbative valuePrinciple of the unfettered evaluation of evidenceInculpatory 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 policyRestrictive measures taken in view of the situation in UkraineCriteria for adopting restrictive measuresPerson, entity or body associated with a person included on the list annexed to the contested decisionConcept of associationCommon interestsFinancial tiesIncludedAsset transactions for the purpose of successionIrrelevant

(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 policyRestrictive measures taken in view of the situation in UkraineCriteria for adopting restrictive measuresLeading businesspersons operating in Russia and their close family members or other natural persons benefiting from themConcept of benefitNon-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 policyRestrictive measures taken in view of the situation in UkraineProhibition on entry and transit and freezing of funds of certain persons and entities in view of the situation in UkraineRestriction of the right to propertyWhether permissibleConditionsRestriction laid down by lawRespect for the essence of the right invokedPursuit of an objective of general interest recognised as such by the European UnionObservance of the principle of proportionalityConditions 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 policyRestrictive measures taken in view of the situation in UkraineCriteria for adopting restrictive measuresPerson, entity or body associated with a person included on the list annexed to the contested decisionCompliance 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 policyRestrictive measures taken in view of the situation in UkraineFreezing of funds of certain persons and entities having regard to the situation in UkraineRestrictive measures not adopted by the Council against other persons, entities or bodies in an identical situationBreach of the principle of equal treatmentNone

(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:

1. Dismisses the action;

2. Orders Ms. Marina Alexandrova Mordashova to pay the costs.