JUDGMENT OF THE GENERAL COURT (Seventh Chamber)
14 July 2021(*)
(Common foreign and security policy – Restrictive measures taken in view of the situation in Venezuela – Freezing of funds – Lists of persons, entities and bodies subject to the freezing of funds and economic resources – Inclusion of the applicant’s name on the lists – Retention of the applicant’s name on the lists – Error of assessment – Right to property)
In Case T‑551/18,
Sandra Oblitas Ruzza, residing in Caracas (Venezuela), represented by F. Di Gianni and L. Giuliano, lawyers,
applicant,
v
Council of the European Union, represented by A. Antoniadis, S. Kyriakopoulou and P. Mahnič, acting as Agents,
defendant,
APPLICATION based on Article 263 TFEU and seeking annulment, first, of Council Decision (CFSP) 2018/901 of 25 June 2018 amending Decision (CFSP) 2017/2074 concerning restrictive measures in view of the situation in Venezuela (OJ 2018 L 160 I, p. 12) and of Council Decision (CFSP) 2018/1656 of 6 November 2018 amending Decision (CFSP) 2017/2074 concerning restrictive measures in view of the situation in Venezuela (OJ 2018 L 276, p. 10) and, second, of Council Implementing Regulation (EU) 2018/899 of 25 June 2018 implementing Regulation (EU) 2017/2063 concerning restrictive measures in view of the situation in Venezuela (OJ 2018 L 160 I, p. 5), and of Council Implementing Regulation (EU) 2018/1653 of 6 November 2018 implementing Regulation (EU) 2017/2063 concerning restrictive measures in view of the situation in Venezuela (OJ 2018 L 276, p. 1), in so far as those acts concern the applicant,
THE GENERAL COURT (Seventh Chamber),
composed of R. da Silva Passos, President, I. Reine (Rapporteur) and L. Truchot, Judges,
Registrar: B. Lefebvre, Administrator,
having regard to the written part of the procedure and further to the hearing on 4 September 2020,
gives the following
Judgment
Background to the dispute
1        The applicant, Ms Sandra Oblitas Ruzza, is the Vice-President of the Consejo Nacional Electoral (National Electoral Council; ‘the CNE’) of Venezuela and the President of the Commission of the Electoral and Civilian Register (‘the Commission of the Register’) of Venezuela. Pursuant to Articles 292 and 293 of the Venezuelan Constitution, the CNE exercises ‘electoral power’ in its role as the governing body to which other bodies are subject. In that regard, in particular, it regulates the application of electoral law, and it organises, administers, directs and supervises all acts relating to the election of candidates responsible for popular representation, including referenda. As part of its mission, it is required, inter alia, to guarantee the equality, reliability, impartiality, transparency and the effectiveness of electoral processes. The Commission of the Register is a subordinate body of the CNE. It is responsible for the creation, organisation, supervision and updating of the civil and electoral registers.
Implementation of the system of restrictive measures: Decision (CFSP) 2017/2074 and Regulation (EU) 2017/2063
2        On 13 November 2017, the Council of the European Union adopted Decision (CFSP) 2017/2074 concerning restrictive measures in view of the situation in Venezuela (OJ 2017 L 295, p. 60). The reason for adopting that decision, according to recital 1 thereof, was the continuing deterioration of democracy, the rule of law and human rights in Venezuela.
3        Decision 2017/2074 contains, in essence, first, a prohibition on exporting to Venezuela arms, military equipment or any other equipment that might be used for internal repression, as well as monitoring equipment, technology or software and, secondly, a prohibition on providing financial, technical or other services in relation to such goods and technologies.
4        Article 6(1) of Decision 2017/2074 provides, in addition, as follows:
‘Member States shall take the necessary measures to prevent the entry into, or transit through, their territories of:
(a)      natural persons responsible for serious human rights violations or abuses or the repression of civil society and democratic opposition in Venezuela; or
(b)      natural persons whose actions, policies or activities otherwise undermine democracy or the rule of law in Venezuela;
as listed in Annex I.’
5        Article 7 of Decision 2017/2074 provides:
‘1.      All funds and economic resources belonging to or owned, held or controlled by:
(a)      natural or legal persons, entities or bodies responsible for serious human rights violations or abuses or the repression of civil society and democratic opposition in Venezuela;
(b)      natural or legal persons, entities or bodies whose actions, policies or activities otherwise undermine democracy or the rule of law in Venezuela;
as listed in Annex I, shall be frozen.
2.      All funds and economic resources belonging to or owned, held or controlled by natural or legal persons, entities and bodies associated with the persons, entities or bodies referred to in paragraph 1, as listed in Annex II, shall be frozen.
3.      No funds or economic resources shall be made available, directly or indirectly, to or for the benefit of natural or legal persons, entities or bodies listed in Annex I or II.
…’
6        Article 8 of Decision 2017/2074 reads as follows:
‘1.      The Council, acting by unanimity upon a proposal by a Member State or the High Representative of the Union for Foreign Affairs and Security Policy, shall establish and amend the lists in Annexes I and II.
2.      The Council shall communicate the decision referred to in paragraph 1, including the grounds for the listing, to the natural or legal person, entity or body concerned, either directly, if the address is known, or through the publication of a notice, providing such person, entity or body with an opportunity to present observations.
3.      Where observations are submitted, or where substantial new evidence is presented, the Council shall review the decision referred to in paragraph 1 and inform the natural or legal person, entity or body concerned accordingly.’
7        The second paragraph of Article 13 of Decision 2017/2074 provides that the decision is to be kept under constant review and is to be renewed, or amended as appropriate, if the Council deems that its objectives have not been met.
8        On the date when Decision 2017/2074 was adopted, Annexes I and II thereto did not yet contain the name of any person or entity.
9        On the basis of Article 215 TFEU and Decision 2017/2074, on 13 November 2017, the Council adopted Regulation (EU) 2017/2063 concerning restrictive measures in view of the situation in Venezuela (OJ 2017 L 295, p. 21). Regarding the freezing of funds of the persons concerned, that regulation reproduces, in essence, the provisions of Decision 2017/2074. In particular, Annexes IV and V to the regulation correspond, respectively, to Annexes I and II to Decision 2017/2074. Pursuant to Article 17(4) of that regulation, those two annexes are to be reviewed at regular intervals and at least every 12 months.
10      On the date when Regulation 2017/2063 was adopted, Annexes IV and V thereto did not yet contain the name of any person or entity.
11      The first paragraph of Article 13 of Decision 2017/2074 provided, in its initial version, that that decision was to apply until 14 November 2018.
12      By contrast, no expiry date was specified in Regulation 2017/2063.
Inclusion of the applicant’s name on the lists: Decision (CFSP) 2018/901 and Implementing Regulation (EU) 2018/899
13      On 25 June 2018, the Council adopted Decision (CFSP) 2018/901 amending Decision 2017/2074 (OJ 2018 L 160 I, p. 12). On the same day, the Council adopted Implementing Regulation (EU) 2018/899 implementing Regulation 2017/2063 (OJ 2018 L 160 I, p. 5). That decision and that implementing regulation (together, ‘the initial acts’) were published that day in the Official Journal of the European Union. Recital 4 of the initial acts states that ‘in view of the continuing deterioration of the situation in Venezuela, 11 persons [had to] be included in the list of natural and legal persons, entities and bodies subject to restrictive measures’ in Annex I to Decision 2017/2074 and Annex IV to Regulation 2017/2063. The initial acts therefore amended those annexes. The applicant’s name was thus included in them as follows: ‘14 – Name: Sandra Oblitas Ruzza – Identifying information: Vice-President of National Electoral Council, Date of birth: 7.6.1969 – Reasons: Vice-President of the National Electoral Council (CNE) and President of the Commission of the Electoral and Civilian Register. Responsible for the CNE’s activities which have undermined democracy in Venezuela, including facilitating the establishment of the illegitimate Constituent Assembly and manipulation of the electoral process – Date of listing: 25.6.2018’.
14      On 26 June 2018, a notice for the attention of the persons subject to the restrictive measures provided for in Decision 2017/2074, as amended by Decision 2018/901, and in Regulation 2017/2063, as implemented by Implementing Regulation 2018/899 concerning restrictive measures in view of the situation in Venezuela was published in the Official Journal (OJ 2018 C 222, p. 6).
15      By email of 12 July 2018, the Council sent the applicant’s representative the two documents on which the initial acts were based, namely a working document dated 25 June 2018 bearing the reference WK 7751/2018 INIT and extract 7 of an annex to a document dated 11 July 2018 bearing the reference COREU CFSP/0250/18.
Events subsequent to the bringing of the present action
16      On 6 November 2018, Council Decision (CFSP) 2018/1656 amending Decision 2017/2074 (OJ 2018 L 276, p. 10) extended the application of the restrictive measures until 14 November 2019, including in respect of the applicant. Decision 2018/1656 also replaced item 7 in Annex I to Decision 2017/2074, thereby amending the reason for listing another person subject to the restrictive measures at issue. On 6 November 2018, Council Implementing Regulation (EU) 2018/1653 implementing Regulation 2017/2063 (OJ 2018 L 276, p. 1) also amended to the same effect item 7 of Annex IV to the latter regulation.
17      By letter of 7 November 2018, the Council informed the applicant’s representative that the decision had been taken to extend the application of the restrictive measures at issue in respect of the applicant. In addition, he was informed of the possibility of submitting an application for revision of that decision to the Council by 23 August 2019. That letter went unanswered.
18      On 7 November 2018, a notice for the attention of the persons subject to the restrictive measures provided for in Decision 2017/2074, as amended by Decision 2018/1656, and in Regulation 2017/2063, as implemented by Implementing Regulation 2018/1653, concerning restrictive measures in view of the situation in Venezuela was published in the Official Journal (OJ 2018 C 401, p. 2).
Procedure and forms of order sought
19      By application lodged at the Court Registry on 19 September 2018, the applicant brought the present action.
20      By separate document lodged at the Court Registry on 17 January 2019, the applicant modified her application, on the basis of Article 86 of the Rules of Procedure of the General Court, in order to seek in addition the annulment of Decision 2018/1656 and of Implementing Regulation 2018/1653, in so far as those acts concern her. The Council submitted its observations on the statement of modification to the Court Registry on 15 February 2019.
21      The written part of the procedure was closed on 16 April 2019.
22      Following a change in the composition of the Chambers of the General Court, pursuant to Article 27(5) of the Rules of Procedure, the Judge-Rapporteur was transferred to the Seventh Chamber, to which this case was consequently assigned.
23      By letter of 28 October 2019, the parties were invited to submit observations on the potential joinder of Cases T‑550/18, Harrington Padrón v Council, T‑551/18, Oblitas Ruzza v Council, T‑552/18, Moreno Reyes v Council, T‑553/18, Rodríguez Gómez v Council, T‑554/18, Hernández Hernández v Council and T‑32/19, Harrington Padrón v Council, for the purposes of the oral part of the procedure. The Council replied that it had no objections to such a joinder. The applicant did not reply within the prescribed period.
24      By decision of 19 November 2019, the President of the Seventh Chamber of the General Court decided to join those cases (‘the joined cases’) for the purposes of the oral part of the procedure. On the same day, the oral part of the procedure was opened.
25      On 28 January 2020, the Seventh Chamber decided to set the date for the hearing in the joined cases for 24 April 2020.
26      On 7 February 2020, in the context of the measures of organisation of procedure provided for in Article 89 of the Rules of Procedure, the Court asked the parties in the joined cases to answer questions in writing before the hearing and orally at the hearing. The parties in the joined cases replied to the questions for written answer within the prescribed period. On 13 March 2020, the Court invited them to submit observations on the other party’s replies. The parties in the joined cases submitted their observations within the prescribed period.
27      As the hearing, originally scheduled for 24 April 2020, was postponed on account of the health crisis, the parties in the joined cases presented oral argument and replied to the Court’s oral questions at the hearing on 4 September 2020.
28      The applicant claims that the Court should:
–        annul the initial acts, and Decision 2018/1656 and Implementing Regulation 2018/1653 (together ‘the contested acts’) in so far as their provisions concern the applicant;
–        order the Council to pay the costs.
29      The Council contends that the Court should:
–        dismiss the action;
–        in the alternative, if the restrictive measures were to be annulled in respect of the applicant, order that the effects of Decision 2018/1656 be maintained in relation to her until the partial annulment of Implementing Regulation 2018/899 takes effect;
–        order the applicant to pay the costs.
Law
Admissibility of the modification of the application
30      In her statement of modification, by which the applicant seeks the annulment of Decision 2018/1656 and Implementing Regulation 2018/1653, she submits that, by those two acts, the Council maintained her name on the list in Annex I to Decision 2017/2074 and on the list in Annex IV to Regulation 2017/2063 after her situation was reviewed and for the same reason as that stated for her initial listing. That decision and that implementing regulation had the effect of extending the period during which the restrictive measures at issue apply to her until 14 November 2019.
31      In the context of its observations on the statement of modification, the Council raises a plea of inadmissibility in so far as that statement seeks the annulment of Implementing Regulation 2018/1653, on the ground that the applicant lacks standing to bring proceedings. The Council argues that that implementing regulation does not specifically name the applicant and does not replace a measure of direct and individual concern to her. As a result, the applicant does not have standing to bring proceedings.
32      In its reply to a question asked in the context of measures of organisation of procedure, the Council adds that the periodic review provided for in Article 17(4) of Regulation 2017/2063 does not necessarily lead to the adoption of a new legal act. According to the Council, in the present case, if it had not been necessary to amend the information regarding a person other than the applicant, Implementing Regulation 2018/1653 would not have been adopted. Neither the purpose nor the effect of that act was to maintain the applicant’s name on the list in the annex to Regulation 2017/2063. As a result, the Council submits that the applicant does not have an interest in bringing proceedings against that act.
33      In that regard, it must be observed that the second paragraph of Article 13 of Decision 2017/2074 provides that that decision is to be kept under constant review. Recital 2 of Decision 2018/1656 expressly refers to a review of Decision 2017/2074.
34      By contrast, Implementing Regulation 2018/1653 does not contain such a reference. It cannot, however, be inferred therefrom that the Council did not review the situation and that that absence of review precludes the modification of the application. Article 17(4) of Regulation 2017/2063 provides, in fact, that the list set out in Annex IV thereto is to be reviewed at regular intervals and at least every 12 months. However, the admissibility of an action cannot depend on the Council’s discretion as to whether or not it considers that it has in fact reviewed the retention on the lists at issue of the name of the person concerned, which would be contrary to the principle of legal certainty (judgment of 9 July 2014, Al-Tabbaa v Council, T‑329/12 and T‑74/13, not published, EU:T:2014:622, paragraph 47). The Council cannot therefore claim, in the present case, that it has not reviewed the applicant’s situation, contrary to its obligations, in order to gain an advantage concerning the admissibility of the action brought against Implementing Regulation 2018/1653. Moreover, on account of the fact that the two texts are closely interrelated, it must be held that the review of the situation which the Council acknowledges it carried out in order to adopt Decision 2018/1656, was a necessary preliminary step to the adoption of Implementing Regulation 2018/1653 also.
35      In the light of the foregoing, the pleas of inadmissibility raised by the Council must be rejected and it must be held that the form of order sought in the statement of modification is admissible, including in so far as it covers Implementing Regulation 2018/1653.
Substance
36      In support of her action, the applicant relies on two pleas in law, alleging, first, ‘manifest errors of assessment’ and lack of precise and corroborating evidence and, second, infringement of the right to property. Those pleas are directed against all of the contested acts.
The first plea in law, alleging ‘manifest errors of assessment’ and a lack of precise and corroborating evidence
37      The applicant divides the first plea into two parts, alleging, first, ‘manifest errors of assessment’ of her duties and role, and, second, a lack of corroborating evidence and a ‘manifest error of assessment’ of the evidence.
38      It must be observed that the two parts overlap, in so far as, in the second part, the applicant directs her complaints alleging a lack of corroborating evidence and a ‘manifest error of assessment’ of the evidence against, in particular, the Council’s assessment of her responsibility in the activities of the CNE and the Commission of the Register which undermined democracy in Venezuela. It is therefore appropriate to examine them together.
39      The applicant submits that her inclusion on the lists at issue is based on her position as Vice-President of the CNE and President of the Commission of the Register. She submits that, according to the case-law, the listing of a natural person on account of his or her links with a body suspected of having undermined democracy or of having violated human rights cannot be based on presumptions that are unsubstantiated by the conduct of the person concerned. According to the applicant, the Council has not established wrongful conduct on her part.
40      In that regard, the applicant explains that the CNE is a collegiate body composed of five members, whose decisions can be adopted only by a three-vote majority or a four-vote majority in certain exceptional circumstances. She submits that, as Vice-President of the CNE, she can exercise her powers on a supplementary basis and only in the absence of the President of the CNE or at his request, upon delegation of the relevant powers. Moreover, the President of the CNE merely carries out purely organisational and administrative duties relating to the management of electoral power. Accordingly, as Vice-President, the applicant exercises powers of that kind only. The applicant submits that she has no capacity to influence in any way the discussions held and the decision taken by the CNE. Furthermore, the position of Vice-President does not come with any special voting right. The applicant adds that she is entitled to vote solely in her capacity as a member of the CNE, which is separate from her capacity as Vice-President, and that she does not have a casting vote or a right of veto.
41      The applicant raises similar arguments as regards the Commission of the Register, which she defines as a collegiate body subordinate to the CNE, composed of three members, of which she is one, as President, and which adopts its decisions by a two-vote majority.
42      The applicant also challenges the ground for her inclusion on the lists, namely that she facilitated the establishment of the National Constituent Assembly (‘the Constituent Assembly’), described by the Council as unconstitutional and illegitimate. She submits, in that regard, that, on 1 May 2017, the then President of Venezuela adopted Decree No 2.830 calling for that assembly to be established, which was submitted to the CNE. The applicant explains that the CNE verified that decree in the light of Articles 347 and 348 of the Venezuelan Constitution and that the majority of its members concluded that that assembly complied with those provisions. The applicant adds that, during that process, she never intervened as Vice-President of the CNE. Moreover, the Tribunal Supremo de Justicia (Supreme Court, Venezuela) confirmed that the Constituent Assembly complied with those provisions of the Constitution. Furthermore, the applicant argues that the Constitution does not impose any obligation to organise a popular referendum on the establishment of the Constituent Assembly and the CNE does not have competence to call such a referendum.
43      In addition, the applicant submits that the Constitution contains no rule on the electoral body to be used for elections to the Constituent Assembly and that the CNE agreed with a proposal from the then President of Venezuela on the composition of that body without the applicant intervening in that process. Moreover, the Tribunal Supremo de Justicia (Supreme Court) also confirmed that decision of the CNE.
44      Furthermore, the applicant disputes the press release issued by the Organization of American States (OAS) on 3 June 2017, in so far as it states that the CNE committed a series of irregularities in the election of the Constituent Assembly. She submits that that document, as with the OAS press release of 19 July 2017, does not criticise the CNE, let alone the applicant, but focuses on the President of that institution.
45      The applicant thus concludes that all of the evidence relied upon by the Council in order to include and retain her name on the lists at issue is insufficiently precise and corroborative and that the assessment of that evidence is manifestly incorrect.
46      The Council disputes the applicant’s arguments.
47      It should be borne in mind that the effectiveness of the judicial review guaranteed by Article 47 of the Charter of Fundamental Rights of the European Union (‘the Charter’) requires, inter alia, that the Courts of the European Union are to ensure that the decision, which affects the person or entity concerned individually, is taken on a sufficiently solid factual basis. That entails a verification of the factual allegations in the summary of reasons underpinning that decision, with the consequence that judicial review cannot be restricted to an assessment of the cogency in the abstract of the reasons relied on, but must concern the question of whether those reasons, or, at the very least, one of those reasons, deemed sufficient in itself to support that decision, is substantiated (judgments of 18 July 2013, Commission and Others v Kadi, C‑584/10 P, C‑593/10 P and C‑595/10 P, EU:C:2013:518, paragraph 119, and of 28 November 2013, Council v Fulmen and Mahmoudian, C‑280/12 P, EU:C:2013:775, paragraph 64).
48      To that end, it is for the Courts of the European Union, in order to carry out that examination, to request the competent European Union authority, when necessary, to produce information or evidence, confidential or not, relevant to such an examination (see judgment of 18 July 2013, Commission and Others v Kadi, C‑584/10 P, C‑593/10 P and C‑595/10 P, EU:C:2013:518, paragraph 120 and the case-law cited; judgment of 28 November 2013, Council v Fulmen and Mahmoudian, C‑280/12 P, EU:C:2013:775, paragraph 65).
49      That is because it is the task of the competent European Union authority to establish, in the event of challenge, that the reasons relied on against the person concerned are well founded, and not the task of that person to adduce evidence of the negative, that those reasons are not well founded (judgments of 18 July 2013, Commission and Others v Kadi, C‑584/10 P, C‑593/10 P and C‑595/10 P, EU:C:2013:518, paragraph 121, and of 28 November 2013, Council v Fulmen and Mahmoudian, C‑280/12 P, EU:C:2013:775, paragraph 66).
50      For that purpose, there is no requirement that that authority produce before the Courts of the European Union all the information and evidence underlying the reasons alleged in the act sought to be annulled. It is however necessary that the information or evidence produced should support the reasons relied on against the person concerned (judgments of 18 July 2013, Commission and Others v Kadi, C‑584/10 P, C‑593/10 P and C‑595/10 P, EU:C:2013:518, paragraph 122, and of 28 November 2013, Council v Fulmen and Mahmoudian, C‑280/12 P, EU:C:2013:775, paragraph 67).
51      So far as concerns the types of evidence which may be relied on, the prevailing principle of EU law is the unfettered evaluation of the evidence available (judgment of 6 September 2013, Persia International Bank v Council, T‑493/10, EU:T:2013:398, paragraph 95 (not published)). In that regard, it is important to recall that, in the absence of investigative powers in third countries, the assessment of the EU authorities must rely on publicly available sources of information, reports, articles in the press, or other similar sources of information (see, to that effect, judgment of 14 March 2018, Kim and Others v Council and Commission, T‑533/15 and T‑264/16, EU:T:2018:138, paragraph 107). It is clear from the case-law that, inter alia, in some situations, the Courts of the European Union may take into account reports from international organisations (see, to that effect, judgment of 18 June 2015, Ipatau v Council, C‑535/14 P, EU:C:2015:407, paragraph 48).
52      Moreover, according to settled case-law, having regard to the preventive nature of the restrictive measures adopted by the Council, if, in the course of their review of the lawfulness of the contested acts, the Courts of the European Union consider that, at the very least, one of the reasons mentioned in those acts in respect of a person on whom those measures are imposed is sufficiently detailed and specific, that it is substantiated and that it constitutes a sufficient basis in itself to support the decision to include or retain the name of the person on the lists annexed to those acts, the fact that the same cannot be said of other such reasons cannot justify the annulment of those acts (see, to that effect, judgments of 18 July 2013, Commission and Others
v Kadi, C‑584/10 P, C‑593/10 P and C‑595/10 P, EU:C:2013:518, paragraph 130; of 28 November 2013, Council v Manufacturing Support & Procurement Kala Naft, C‑348/12 P, EU:C:2013:776, paragraph 72; and of 26 March 2019, Boshab and Others v Council, T‑582/17, not published, EU:T:2019:193, paragraph 221).
53      It is in the light of those principles that it is appropriate to examine whether the reasons for the applicant’s inclusion in and retention in the lists at issue – based on the fact that, in view of her duties as Vice-President of the CNE, she was responsible for the CNE’s activities which undermined democracy in Venezuela and, in particular, facilitated the establishment of the illegitimate Constituent Assembly and the manipulation of the electoral process – are vitiated by errors of assessment.
54      As set out in paragraphs 4 and 5 above, in accordance with Article 6(1) and Article 7(1) of Decision 2017/2074, the general criterion established for the purposes of inclusion on the lists at issue, covers, inter alia, natural persons ‘whose actions, policies or activities otherwise undermine democracy or the rule of law in Venezuela’. That criterion is also set out in Article 8(3) of Regulation 2017/2063.
55      In that regard, in the first place, it should be borne in mind that, as regards the general context in Venezuela, it is clear from recitals 1 and 5 to 8 of Decision 2017/2074 and recitals 1 and 2 of Regulation 2017/2063 that the contested acts were adopted on account of the continuing deterioration of democracy, the rule of law and human rights in Venezuela, as a result of, inter alia, the use of excessive force, and the repression of civil society and democratic opposition. Recital 6 of Decision 2017/2074 states that, on 2 August 2017, the European Union expressed its deep regret at the decision of the Venezuelan authorities to continue with the election of a Constituent Assembly, a decision that durably worsened the crisis in Venezuela and risked undermining other legitimate institutions foreseen by the Venezuelan Constitution, such as the National Assembly.
56      That general context of the situation in Venezuela was also referred to by the Council before the Court, without it being disputed by the applicant. The Council thus recalled that, after December 2015, following elections to the National Assembly, a coalition of opposition parties had won a majority of the seats. In January 2016, the then President of Venezuela declared a state of emergency in Venezuela and ruled by decree. By April 2017, demonstrations had taken place almost daily for several months, which resulted in the death and injury of many civilians and thousands of arrests. In May 2017, the then President of Venezuela announced the creation of a Constituent Assembly, the members of which were elected on 30 July 2017 through an electoral process which was boycotted by the opposition.
57      The Council’s file contains, as part of the evidence justifying the inclusion and retention of the applicant’s name on the lists at issue, evidence such as a report and three press releases of the OAS, containing information on the illegitimate and unconstitutional nature of the Constituent Assembly, in particular because of the usurpation by the Constituent Assembly of the powers of the National Assembly.
58      In particular, first, the OAS press release of 3 June 2017, prior to the elections of the Constituent Assembly of 30 July 2017, contains a message from the Secretary General of the OAS regarding Venezuela. In that press release, reference is made to the illegitimate and unconstitutional nature of the Constituent Assembly, in particular that it ‘seeks to definitively denaturalize the “Magna Carta”’.
59      Second, on 19 July 2017, shortly before the Constituent Assembly elections, the OAS issued a press release containing a statement by its Secretary General before the United States Congress. The Secretary General of the OAS had emphasised that the Constituent Assembly, whose objective was to impose a dictatorship in Venezuela, had supra-constitutional powers in order to eliminate State institutions, in particular the National Assembly which was legitimately elected by the people, and intended to contribute to repression and limitation of freedoms.
60      Third, after the elections to the Constituent Assembly, in a report of 25 September 2017, the OAS stated that, immediately after its establishment, the Constituent Assembly, first, divested the National Assembly of its legislative powers without that body being dissolved and, second, assumed that body’s powers. In addition, it is apparent from that same document that the Constituent Assembly removed the Prosecutor General of Venezuela from her duties where she had previously expressed her disagreement with the Tribunal Supremo de Justicia (Supreme Court) and the executive. According to the OAS, the establishment of the Constituent Assembly marked the end of the separation of powers in Venezuela.
61      Fourth, in a press release by the OAS on the same date, the Secretary General of the OAS set out the report referred to in paragraph 60 above. In that press release, the Secretary General of the OAS stated that, following the establishment of the Constituent Assembly, democracy in Venezuela was completely eliminated. He also repeated, in essence, the findings set out in paragraph 60 above.
62      It should be noted that the above information is consistent with the European Union’s concerns described in recital 6 of Decision 2017/2074, cited in paragraph 55 above.
63      Therefore, it must be held that, in the light of the reliable evidence put forward by the Council, the applicant cannot successfully contest the illegitimate and unconstitutional nature of the Constituent Assembly, particularly since she has not called into question the information set out in paragraphs 58 to 62 above. Moreover, the applicant cannot rely on the fact that the CNE, with her support, first, considered that the proposal of the then President of Venezuela for the establishment of that assembly complied with the Venezuelan Constitution and, second, agreed with the proposal for the composition of the electoral body for the elections to that assembly. She has not denied that she supported the CNE’s decisions and, in any event, she has not had her claims corroborated by a reliable external source.
64      As regards the fact that the Tribunal Supremo de Justicia (Supreme Court) confirmed the decision of the CNE by judgment No 378 of 31 May 2017, it must be observed that the independence of that court is itself disputed, as is apparent from the OAS press release of 3 June 2017 and its report of 25 September 2017, included in the Council’s file, and that, as is apparent from the lists at issue, the president of that institution himself is subject to restrictive measures for having ‘supported and facilitated the Government’s actions and policies which have undermined democracy and the rule of law in Venezuela’.
65      In the second place, it must be borne in mind that the CNE is the body which, under Article 292 of the Venezuelan Constitution, is the head of one of the five branches of public power, namely electoral power.
66      It follows from the considerations set out in paragraph 63 above that the CNE played an important role in establishing the Constituent Assembly by supporting that process. Moreover, the applicant has not rebutted the Council’s assertion, contained in the OAS report of 25 September 2017, to which reference is made in the Council’s file, that the CNE refrained from publishing detailed information on the results of the election of the Constituent Assembly.
67      Accordingly, the Council has established to the requisite legal standard that the CNE had contributed to the establishment of the Constituent Assembly.
68      In the third place, as regards the applicant’s responsibility, it should be noted that she does not contest her position as Vice-President of the CNE, but, in essence, her role as Vice-President of the CNE and her influence within that institution.
69      In that regard, it is apparent from the case-law that persons responsible for violations of electoral standards, such as the Vice-President of a Central Electoral Committee of the country concerned, may be regarded as being involved in undermining democracy in that country (see, to that effect, judgment of 23 September 2014, Ipatau v Council, T‑646/11, not published, EU:T:2014:800, paragraphs 140 to 144). That case-law applies a fortiori in the present case, since, in accordance with Article 292 of the Venezuelan Constitution, the CNE is the highest body in the administration responsible for elections, which is not disputed, and the applicant is the Vice-President of that body.
70      Furthermore, the applicant does not dispute that, in her capacity as Vice-President of the CNE, she personally participated in that body’s activities and it is not apparent from the file that she dissociated herself at any given time from the CNE’s work or that she expressed the slightest reservation regarding the work it carried out, in particular as regards the establishment of the Constituent Assembly and the election of its members in July 2017 (see, by analogy, judgment of 23 September 2014, Ipatau v Council, T‑646/11, not published, EU:T:2014:800, paragraph 144).
71      On the contrary, despite the applicant’s argument that the role of vice-president is independent of the role of member of the CNE, in accordance with Articles 36 and 37 of the Ley Orgánica del Poder Electoral (Organic Law on electoral power), the Vice-President of the CNE is elected by and from among the members of that institution. Therefore, in addition to her role as Vice-President of the CNE, the applicant, as she acknowledges, is necessarily, in that capacity, a member with a right to vote within that institution. As the applicant states, decisions within the CNE are adopted by a simple majority of the votes of the entirety of its five members. It must therefore be held that the applicant, as Vice-President and member of the CNE, participated personally and on an equal basis, with the other members, in the activities of that institution.
72      In particular, it must be noted that the applicant claims, first, that the CNE considered that the proposal of the then President of Venezuela on the establishment of the Constituent Assembly complied with the Constitution and, second, that the CNE considered that the proposal concerning the composition of the electoral body for the elections to the Constituent Assembly was appropriate.
73      In that context, it is apparent from the minutes of the CNE meetings during which those subjects were discussed, which are annexed to the application, that the applicant actively supported those proposals of the then President of Venezuela. In the contested acts, it is specifically alleged against her that she facilitated the establishment of that assembly. It follows that the applicant actively participated in the adoption of the decisions by the CNE in that regard.
74      It must therefore be held that the applicant cannot successfully criticise the ground according to which she facilitated the establishment of the Constituent Assembly, the constitutionality and legitimacy of which are called into question, and there is no need to take into consideration her position as President of the Commission of the Register.
75      That conclusion cannot be contradicted by the applicant’s argument that, in accordance with the Venezuelan Constitution, CNE members have no ties to organisations for political purposes.
76      The question which arises in the present case is not whether the texts in force organise the independence of the CNE or its members. Although the Constitution cannot be ignored, the question raised by the grounds of the contested acts is rather whether, as a matter of fact, it is established that, in the exercise of her roles within the CNE, the applicant undermined democracy in Venezuela.
77      In the light of the considerations set out in paragraphs 47 to 76 above in the context of the present plea, without it being necessary to examine, in the light of the case-law cited in paragraph 52 above, the other grounds set out in the contested acts with regard to the applicant, it must be held that the Council did not make any error of assessment in concluding that, taking into account the applicant’s role as Vice-President of the CNE, and in the exercise of her duties, she was responsible for having undermined democracy in Venezuela, inter alia by facilitating the establishment of the Constituent Assembly.
78      The first plea in law must therefore be rejected.
The second plea in law, alleging infringement of the right to property
79      The applicant submits that the restrictive measures imposed on her by the contested acts constitute an unjustified and disproportionate restriction of her right to property, as protected by Article 17(1) of the Charter. Those measures have the potential of suspending the normal economic life of the person, entity or group that is listed because they deprive them of most forms of use of their funds and other assets.
80      According to the applicant, no infringement of the right to property may be justified if there is no proper assessment of the evidence demonstrating that she posed a risk to the public interest which the restrictive measures sought to protect.
81      In addition, the applicant submits, first, that the Council has not demonstrated the existence of specific conduct by the applicant which undermined democracy or the rule of law in Venezuela. According to the applicant, such a conclusion cannot be drawn merely from her role as Vice-President of the CNE and as President of the Commission of the Register. In addition, she submits that the Council has not adduced precise and corroborating evidence to that effect. She concludes that the Council therefore made ‘a manifest error of assessment’ with the result that it is not permissible to restrict the applicant’s right to property.
82      Second, the applicant submits that, in order to restrict the exercise of her right to property, the Council was required to respect the conditions laid down in Article 52(1) of the Charter. However, the applicant argues that, in the present case, that restriction of her right to property is not laid down in law since, in her view, she is not responsible for undermining democracy or the rule of law in Venezuela.
83      According to the applicant, even if it were established that she was responsible, the measures taken against her go beyond what is necessary. In that regard, the applicant sets out some alternative and less restrictive sanctions which could have been adopted. In addition, the ‘essential content’ of the right to property was infringed regardless of the fact that the measures are temporary and reversible.
84      The Council disputes the applicant’s arguments.
85      Under Article 17(1) of the Charter, everyone has the right to own, use, dispose of and bequeath his or her lawfully acquired possessions. No one may be deprived of his or her possessions, except in the public interest and in the cases and under the conditions provided for by law, subject to fair compensation being paid in good time for their loss The use of property may be regulated by law in so far as is necessary for the general interest.
86      Pursuant to Article 52(1) of the Charter, any limitation on the exercise of the rights and freedoms recognised by it must, first, be provided for by law and respect the essence of those rights and freedoms and, second, subject to the principle of proportionality, limitations may be made only if they are necessary and genuinely meet objectives of general interest recognised by the European Union or the need to protect the rights and freedoms of others.
87      In the present case, it is clear that the contested acts restrict the applicant’s right to property, since, pursuant to Article 7 of Decision 2017/2074 and Articles 8 and 9 of Regulation 2017/2063, she cannot, inter alia, make use of her funds situated within the European Union, unless she obtains specific authorisation, and since no funds or other economic resources can be made available, directly or indirectly, to her.
88      However, the right to property, as protected by Article 17(1) of the Charter, does not constitute an unfettered prerogative and may therefore be limited, under the conditions laid down in Article 52(1) of the Charter (see judgment of 21 February 2018, Klyuyev v Council, T‑731/15, EU:T:2018:90, paragraph 176 (not published) and the case-law cited).
89      Consequently, in order to comply with EU law, a limitation on the exercise of the right to property must satisfy three conditions.
90      First, the limitation must be ‘provided for by law’. In other words, the measure in question must have a legal basis. Second, it must refer to an objective of general interest, recognised as such by the European Union. Those objectives include those pursued under the common foreign and security policy (CFSP) and referred to in Article 21(2) TEU. Third, the limitation must not be excessive: it must be necessary and proportionate to the aim sought and the ‘essential content’, that is, the substance, of the right or freedom at issue must not be impaired (see judgment of 6 June 2018, Lukash v Council, T‑210/16, not published, EU:T:2018:332, paragraph 222 and the case-law cited).
91      As regards the first condition, it must be observed that, in the present case, the limitation is ‘provided for by law’, given that it is set out in Decision 2017/2074 and Regulation 2017/2063, as amended by the contested acts. Those acts are, in particular, of general application and have a clear legal basis in EU law. Moreover, the restrictions are formulated in sufficiently precise terms as regards their scope and the reasons showing why they apply to the applicant (see, to that effect, judgment of 5 November 2014, Mayaleh v Council, T‑307/12 and T‑408/13, EU:T:2014:926, paragraph 176).
92      In that regard, the applicant’s submissions that the present restriction of her right to property is not provided for by law in so far as she is not responsible for undermining democracy and the rule of law in Venezuela must be rejected.
93      Regarding the second condition, in respect of which the applicant does not put forward any arguments, it must be stated that, as is apparent from the examination of the first plea in law, the contested acts comply, as regards the applicant, with the objective referred to in Article 21(2)(b) TEU of consolidating and supporting democracy and the rule of law in so far as they form part of a policy intended to promote democracy in Venezuela.
94      As regards the third condition, it must be recalled that the principle of proportionality, as one of the general principles of EU law, requires that measures adopted by the EU institutions do not exceed the limits of what is appropriate and necessary in order to attain the objectives pursued by the legislation in question. Consequently, when there is a choice between several appropriate measures, recourse must be had to the least onerous, and the disadvantages caused must not be disproportionate to the aims pursued (see judgment of 15 September 2016, Yanukovych v Council, T‑346/14, EU:T:2016:497, paragraph 164 and the case-law cited).
95      In that respect, with regard to judicial review of compliance with the principle of proportionality, the EU legislature must be allowed a broad discretion in areas which involve political, economic and social choices on its part, and in which it is called upon to undertake complex assessments. Consequently, the legality of a measure adopted in those fields can be affected only if the measure is manifestly inappropriate having regard to the objective which the competent institution is seeking to pursue (see judgment of 28 November 2013, Council v Manufacturing Support & Procurement Kala Naft, C‑348/12 P, EU:C:2013:776, paragraph 120 and the case-law cited; judgment of 15 June 2017, Kiselev v Council, T‑262/15, EU:T:2017:392, paragraph 88).
96      According to the case-law, the disadvantages caused by the restrictive measures are not disproportionate to the objectives pursued, taking into consideration, first, that those measures are inherently temporary and reversible and do not therefore infringe the ‘essential content’ of the right to property, and, second, that they may be derogated from in order to cover basic needs, legal costs or even the extraordinary expenses of the persons concerned (see judgment of 21 February 2018, Klyuyev v Council, T‑731/15, EU:T:2018:90, paragraph 182 (not published) and the case-law cited).
97      In the present case, regarding the appropriateness of the restrictive measures, such as those imposed on the applicant, with reference to an objective of general interest as fundamental to the international community as the protection of democracy and the rule of law, it is apparent that the freezing of the funds, financial assets and other economic resources of the persons identified as being involved in the undermining of democracy in Venezuela cannot be regarded as inappropriate (see, to that effect, judgment of 12 February 2020, Boshab v Council, T‑171/18, not published, EU:T:2020:55, paragraph 134 and the case-law cited).
98      As regards the necessity of those measures, it should be noted that alternative and less restrictive measures are not as effective in achieving the goal pursued when they make it possible to circumvent the restrictions imposed or there is a likelihood that they will not target the person concerned effectively (see, to that effect, judgment of 20 September 2016, Alsharghawi v Council, T‑485/15, not published, EU:T:2016:520, paragraph 84 and the case-law cited).
99      The applicant suggests two alternative measures which, according to her, would be less restrictive. She proposes, first, a prohibition on EU citizens engaging in transactions related to, providing financing for, or otherwise dealing in the purchase of any debt, including accounts receivable, issued by the Venezuelan Government or, second, a prohibition on EU citizens participating in the transfer by the Venezuelan Government of any equity interest in any entity owned 50% or more by the Venezuelan Government.
100    In that regard, it must be stated that it is apparent from, in particular, recital 7 of Decision 2017/2074 that the targeted restrictive measures in question ‘should be imposed against certain natural and legal persons responsible for serious human rights violations or abuses or the repression of civil society and democratic opposition and persons, entities and bodies whose actions, policies or activities undermine democracy or the rule of law in Venezuela, as well as persons, entities and bodies associated with them’. The alternative measures proposed by the applicant do not enable the aims pursued in Decision 2017/2074 and Regulation 2017/2063 to be achieved. The applicant’s argument in that regard must therefore be rejected.
101    In addition, it must be borne in mind that Article 7(4) of Decision 2017/2074 and Article 9(1) of Regulation 2017/2063 provide for the possibility of releasing certain frozen funds or economic resources so that the persons concerned can satisfy basic needs or meet certain commitments.
102    In that regard, the applicant submits that the ‘essential content’ of the right to property was infringed regardless of the fact that the measures are temporary and reversible. That argument must be rejected in accordance with the case-law cited in paragraph 96 above.
103    It follows that the contested acts do not infringe the applicant’s right to property and that the second plea in law must be rejected.
104    Consequently, as the first plea in law has also been rejected, the action must be dismissed in its entirety.
Costs
105    Under Article 134(1) of the Rules of Procedure, the unsuccessful party is to be ordered to pay the costs if they have been applied for in the successful party’s pleadings. Since the applicant has been unsuccessful, she must be ordered to pay the costs in accordance with the form of order sought by the Council.
On those grounds,
THE GENERAL COURT (Seventh Chamber)
hereby:
1.      Dismisses the action;
2.      Orders Ms Sandra Oblitas Ruzza to pay the costs.
da Silva Passos
Reine
Truchot
Delivered in open court in Luxembourg on 14 July 2021.
E. Coulon
S. Papasavvas
Registrar
President
*      Language of the case: English.