62022TJ0335_INF
Judgment of the General Court (First Chamber) of 6 September 2023 –Khudaverdyan v Council
(Case T‑335/22) (
1
)
(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 – Restrictions on entry into the territories of the Member States – Inclusion and retention of the applicant’s name on the lists of persons, entities and bodies concerned – Obligation to state reasons – Error of assessment – Concept of ‘leading businessperson’ – Equal treatment – Proportionality – Right to property – Freedom to conduct a business – Right to respect for private life)
1.
Acts of the institutions – Statement of reasons – Obligation – Scope – Restrictive measures taken having regard to the situation in Ukraine – Leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of Russia and persons associated with them – 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; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/429, (CFSP) 2022/1530 and (CFSP) 2023/572; Council Regulations No 269/2014, No 2022/427, No 2022/1529 and No 2023/571)
(see paragraphs 47, 48, 57)
2.
EU law – Principles – Rights of the defence – Right to effective judicial protection – Restrictive measures taken having regard to the situation in Ukraine – No right to a prior formal hearing – No infringement of the right to be heard
(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/429, (CFSP) 2022/1530 and (CFSP) 2023/572; Council Regulations No 269/2014, No 2022/427, No 2022/1529 and No 2023/571)
(see paragraphs 61, 62)
3.
European Union – Judicial review of the legality of the acts of the institutions – Restrictive measures taken having regard to 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 set of indicia – No error of assessment
(Charter of Fundamental Rights of the European Union, Art. 47; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/429, (CFSP) 2022/1530 and (CFSP) 2023/572; Council Regulations No 269/2014, No 2022/427, No 2022/1529 and No 2023/571)
(see paragraphs 66-68, 86-90, 101-103, 107, 108)
4.
Common foreign and security policy – Restrictive measures taken having regard to 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 Russia and persons associated with them – Concept of influence – Need to establish a link with the Russian regime – Absence
(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/429, (CFSP) 2022/1530 and (CFSP) 2023/572, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), No 2022/427, No 2022/1529 and No 2023/571)
(see paragraphs 78-83)
5.
Common foreign and security policy – Restrictive measures taken having regard to 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 Russia and persons associated with them – Concept of ‘economic sector providing a substantial source of revenue’ – Economic sector which does not provide a substantial source of revenue to the Government of the Russian Federation – Irrelevant
(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/429, (CFSP) 2022/1530 and (CFSP) 2023/572, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), No 2022/427, No 2022/1529 and No 2023/571)
(see paragraphs 105, 109)
6.
European Union – Judicial review of the legality of the acts of the institutions – Restrictive measures taken having regard to 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 – Absence
(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/429, (CFSP) 2022/1530 and (CFSP) 2023/572; Council Regulations No 269/2014, No 2022/427, No 2022/1529 and No 2023/571)
(see paragraphs 113-115)
7.
Common foreign and security policy – Restrictive measures taken having regard to the situation in Ukraine – Scope – Leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of Russia and persons associated with them – Concept – Persons previously involved – Conditions – No error of assessment
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2023/572, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g) and No 2023/571)
(see paragraphs 117-125)
8.
Common foreign and security policy – Restrictive measures taken having regard to the situation in Ukraine – Freezing of funds of leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of Russia and persons associated with them – Non-adoption by the Council of restrictive measures against non-Russian businessmen – Breach of the principle of equal treatment – Absence
(Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/429, (CFSP) 2022/1530 and (CFSP) 2023/572; Council Regulations No 269/2014, No 2022/427, No 2022/1529 and No 2023/571)
(see paragraphs 135, 137-140)
9.
Common foreign and security policy – Restrictive measures taken having regard to the situation in Ukraine – Freezing of funds of leading businesspersons involved in economic sectors providing a substantial source of revenue to the Government of Russia and persons associated with them – Judicial review of legality – 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) 2022/429, (CFSP) 2022/1530 and (CFSP) 2023/572; Council Regulations No 269/2014, Art. 3(1)(g), No 2022/427, No 2022/1529 and No 2023/571)
(see paragraphs 141-150)
10.
Common foreign and security policy – Restrictive measures taken having regard to the situation in Ukraine – Freezing of funds of certain persons and entities having regard to the situation in Ukraine – Restriction on the right to respect for private and family life, the right to property and the right to conduct a business – Breach of principle of proportionality – Absence
(Charter of Fundamental Rights of the European Union, Arts 7, 16 and 17; Council Decision 2014/145/CFSP, as amended by Decisions (CFSP) 2022/429, (CFSP) 2022/1530 and (CFSP) 2023/572; Council Regulations No 269/2014, No 2022/427, No 2022/1529 and No 2023/571)
(see paragraphs 154-167)
Operative part
The Court:
1.
Dismisses the action;
2.
Orders Mr Tigran Khudaverdyan to bear his own costs and to pay those incurred by the Council of the European Union.
(
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)	OJ C 284, 25.7.2022.