62022TJ0362_INF
Judgment of the General Court (First Chamber) of 11 September 2024 –Bazhaev v Council
(Case T‑362/22)
(Common foreign and security policy – Restrictive measures 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 – Inclusion and maintenance of the applicant’s name on the list – Obligation to state reasons – Right to effective judicial protection – Concept of ‘leading businesspersons’ – Article 2(1)(d) and (g) of Decision 2014/145/CFSP – Concept of ‘association’ – Error of assessment – Right to property – Freedom to conduct a business – Right to private life – Proportionality – Principle of non-discrimination)
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 – Whether summary statement of reasons sufficient
(Art. 296, second para., TFEU; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/582, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/581, 2022/1529, 2023/571 and 2023/1765)
(see paragraphs 43-53)
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) 2022/582, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/581, 2022/1529, 2023/571 and 2023/1765)
(see paragraphs 63-69)
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 – Criteria for adopting restrictive measures
(Art. 275, second para., TFEU)
(see paragraph 77)
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 – 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) 2022/582, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/581, 2022/1529, 2023/571 and 2023/1765)
(see paragraphs 78-80, 112, 144, 159, 180)
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 – 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 – Changes in the applicant’s situation – Unsubstantiated claims regarding his status as a leading businessperson
(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 and (CFSP) 2023/1767, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), 2022/1529, 2023/571 and 2023/1765)
(see paragraphs 81, 82, 120, 130, 150, 174-177)
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 – 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 – Publicly available documents – Probative value – Principle of the unfettered evaluation of evidence
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2022/582; Council Regulations No 269/2014 and 2022/581)
(see paragraphs 88-90)
7.
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 influence
(Art. 21 TEU; Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2022/582, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g) and 2022/581)
(see paragraphs 98-100)
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 economic sector providing a substantial source of revenue – Metal mining sector – Included
(Art. 21 TEU; Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2022/582, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g) and 2022/581)
(see paragraphs 109, 110)
9.
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 – Interests arising solely in a professional context – Included
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2022/1530, Art. 2(1); Council Regulations No 269/2014, Art. 3(1) and 2022/1529)
(see paragraphs 134-141, 180, 181)
10.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Natural or legal persons, entities or bodies providing material or financial support to Russian decision-makers or benefitting from those decision-makers, and natural or legal persons, entities or bodies associated with them – Concept of benefitting from Russian decision-makers – Need to establish a link between the advantages obtained and the annexation of Crimea or the destabilisation of Ukraine – None
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2023/572, Art. 2(1)(d); Council Regulations No 269/2014, Art. 3(1)(d) and 2023/571)
(see paragraphs 153, 164)
11.
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 or entities in an identical situation – Breach of the principle of equal treatment – None
(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/582, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/581, 2022/1529, 2023/571 and 2023/1765)
(see paragraphs 189-191)
12.
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 – Judicial review of legality – Principle of proportionality – Appropriateness of the restrictive measures – Restrictive measures pursuing a legitimate aim of the common foreign and security policy
(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/582, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/581, 2022/1529, 2023/571 and 2023/1765)
(see paragraphs 193-196)
13.
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 – Restriction of the right to respect for private and family life, the right to property and the freedom to conduct a business – 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 7, 16, 17 and 52(1); Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/582, (CFSP) 2022/1530, (CFSP) 2023/572 and (CFSP) 2023/1767; Council Regulations No 269/2014, 2022/581, 2022/1529, 2023/571 and 2023/1765)
(see paragraphs 202-209)
14.
Non-contractual liability – Conditions – Unlawfulness – Damage – Causal link – One of the conditions not satisfied – Action for damages dismissed in its entirety
(Art. 340, second para., TFEU)
(see paragraphs 213-216)
Operative part
The Court:
1.
Dismisses the action;
2.
Orders Mr Musa Yusopovich Bazhaev to bear his own costs and to pay those incurred by the Council of the European Union;
3.
Orders the European Commission to bear its own costs.