62022TJ0748_INF
Judgment of the General Court (First Chamber) of 15 January 2025 –Kantor v Council
(Case T‑748/22)
(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 – List of persons, entities and bodies subject to the freezing of funds and economic resources – Restrictions on entry into the territory of the Member States – List of persons, entities and bodies subject to restrictions on entry into the territories of the Member States – Retention of the of the applicant’s name on the lists – Concept of ‘leading businesspersons’ – Concept of ‘businesspersons involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation’ – Article 2(1)(g) of Decision 2014/145/CFSP – Article 3(1)(g) of Regulation (EU) No 269/2014 – Right to effective judicial protection – Obligation to state reasons – Rights of the defence – Error of assessment – Proportionality – Legal certainty – Equal treatment)
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 the said 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
(Art. 29 TEU; Arts 215 and 296, second para., TFEU; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530, (CFSP) 2023/572, (CFSP) 2023/1767 and (CFSP) 2024/847; Council Regulations No 269/2014, 2022/1529, 2023/571, 2023/1765 and 2024/849)
(see paragraphs 50-60)
2.
EU law – Principles – Rights of the defence – Right to effective judicial protection – Restrictive measures taken in view of the situation in Ukraine – Obligation to disclose individual and specific grounds for the decisions adopted – Obligation to enable the person concerned effectively to put forward his or her point of view regarding the reasons relied on against him or her – Scope – Infringement of the right to be heard – No breach
(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, (CFSP) 2023/1767 and (CFSP) 2024/847; Council Regulations No 269/2014, 2022/1529, 2023/571, 2023/1765 and 2024/849)
(see paragraphs 68, 69, 73, 80-85)
3.
Common foreign and security policy – Restrictive measures against certain persons and entities in view of the situation in Ukraine – Decision to freeze 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 – Infringement of the right to be heard – No breach
(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, (CFSP) 2023/1767 and (CFSP) 2024/847; Council Regulations No 269/2014, 2022/1529, 2023/571, 2023/1765 and 2024/849)
(see paragraphs 70, 71)
4.
EU law – Principles – Duty to act within a reasonable time – Administrative procedure – Assessment that must be made in concreto – Criteria for assessment – Freezing of funds of certain persons and entities having regard to the situation in Ukraine – Time-frame in which to make a request for reconsideration not fixed by a provision of EU law – Short time-frame – Infringement of the right to be heard – No breach
(Charter of Fundamental Rights of the European Union, Art. 41(1); Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530, (CFSP) 2022/572, (CFSP) 2023/1767 and (CFSP) 2023/847; Council Regulations No 269/2014, 2022/1529, 2022/571, 2023/1765 and 2024/849)
(see paragraphs 72, 78)
5.
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) 2022/1530, (CFSP) 2023/572, (CFSP) 2023/1767 and (CFSP) 2024/847, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), 2022/1529, 2023/571, 2023/1765 and 2024/849)
(see paragraphs 90-92, 142, 147, 154, 161, 172, 195, 207)
6.
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 – Breadth of the discretion of that competent authority – Relevance of evidence produced on the basis of a previous inclusion where there are no amendments to the grounds for inclusion or changes in the applicant’s situation or in the context in Ukraine
(Charter of Fundamental Rights of the European Union, Art. 47; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530, (CFSP) 2022/572, (CFSP) 2023/1767 and (CFSP) 2024/847; Council Regulations No 269/2014, 2022/1529, 2022/571, 2023/1765 and 2024/849)
(see paragraphs 93, 94, 166-170, 186, 187, 192, 201, 202)
7.
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 due to the applicant’s status as a leading businessperson involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation – Inclusion of the applicant on the list annexed to the contested decision on account of his or her status as leading businessperson operating in Russia or businessperson involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation – Publicly available documents – Probative value – Principle of the unfettered assessment of the evidence
(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530, (CFSP) 2023/572, (CFSP) 2023/1767 and (CFSP) 2024/847; Council Regulations No 269/2014, 2022/1529, 2023/571, 2023/1765 and 2024/849)
(see paragraphs 107-117)
8.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons associated with them – Concept of ‘leading’ – Principal owner of a large Russian fertiliser producer – Control through a trust – Included
(Art. 21 TEU; Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2022/1530, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g) and 2022/1529)
(see paragraphs 124-134, 141, 143)
9.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons associated with them – Businesspersons, legal persons, entities or bodies involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons associated with them – Concept of economic sector providing a substantial source of revenue – Fertiliser sector – Included
(Art. 21 TEU; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530, (CFSP) 2023/572, (CFSP) 2023/1767 and (CFSP) 2024/847, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), 2022/1529, 2023/571, 2023/1765 and 2024/849)
(see paragraphs 148-152, 171, 189, 193)
10.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons associated with them – Concept of substantial source of revenue – Significant and not negligible source of revenue – Broad interpretation
(Art. 21 TEU; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530 and (CFSP) 2023/572, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), 2022/1529 and 2023/571)
(see paragraphs 156-159)
11.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Businesspersons, legal persons, entities or bodies involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons associated with them – Meaning – Businesspersons of importance on account of their position or their activities in the economic sector concerned
(Art. 21 TEU; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2023/1767 and (CFSP) 2024/847, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), 2023/1765 and 2024/849)
(see paragraphs 174, 184, 185, 188)
12.
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 freedom of assembly and of association and of the right to property – Breach of the principle of proportionality – No breach
(Art. 5(4) TEU; Charter of Fundamental Rights of the European Union, Arts 12 and 17; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530, (CFSP) 2022/572, (CFSP) 2023/1767 and (CFSP) 2024/847; Council Regulations No 269/2014, 2022/1529, 2023/571, 2023/1765 and 2024/849)
(see paragraphs 219, 229-238)
13.
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 freedom of assembly and of association and 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 12, 17 and 52(1); Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530, (CFSP) 2023/572, (CFSP) 2023/1767 and (CFSP) 2024/847; Council Regulations No 269/2014, 2022/1529, 2023/571, 2023/1765 and 2024/849)
(see paragraphs 220-228)
14.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons associated with them – Compliance with the principle of legal certainty requiring clarity, precision and foreseeability of the effects of legal rules
(Art. 21 TEU; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530 and (CFSP) 2023/572, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), 2022/1529 and 2023/571)
(see paragraphs 243-247)
15.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Freezing of the funds of leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons associated with them – Non-adoption by the Council of restrictive measures against non-Russian businesspersons – Breach of the principle of equal treatment – No breach
(Art. 21 TEU; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530 and (CFSP) 2023/572, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), 2022/1529 and 2023/571)
(see paragraphs 248-250)
16.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Freezing of the funds of leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons associated with them – Measures to freeze funds not adopted by the Council in respect of other persons in an identical situation – Breach of the principle of equal treatment – No breach
(Art. 21 TEU; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/1530 and (CFSP) 2023/572, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), 2022/1529 and 2023/571)
(see paragraph 251)
Operative part
The Court:
1.
Dismisses the action;
2.
Orders Mr Viatcheslav Moshe Kantor to pay the costs.