62023TJ0286_INF
Judgment of the General Court (First Chamber) of 11 September 2024 –OT v Council
(Case T‑286/23)
(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 – Maintaining the applicant’s name on the list – Concept of ‘leading businessperson’ – Article 2(1)(g) of Decision 2014/145/CFSP – Plea of illegality – Error of assessment – Rights of the defence – Right to effective judicial protection – Right to an effective remedy)
1.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Leading businesspersons or legal persons, entities or bodies involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons, entities or bodies associated with them – Compliance with the principle of legal certainty requiring clarity, precision and foreseeability of the effects of legal rules – Observance of the principle of proportionality
(Art. 21 TEU; Art. 2 TFEU; Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2022/329, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g) and 2022/330)
(see paragraphs 51, 52, 55-62)
2.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Leading businesspersons or legal persons, entities or bodies involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons, entities or bodies associated with them – Concept of influence – The need to perform an executive role – Absence
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2022/329, Art. 2(1)(g); Council Regulations No 269/2014, Art. 3(1)(g), and 2022/330)
(see paragraphs 53, 54, 90, 91)
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 – 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, 2022/427, 2022/1529 and 2023/571)
(see paragraphs 66-68)
4.
Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Criteria for adopting restrictive measures – Leading businesspersons or legal persons, entities or bodies involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation and persons, entities or bodies associated with them – Council’s obligation to carry out an updated assessment in the course of the review of the restrictive measures – Evidence to the contrary – Change in the specific situation of the person covered by the restrictive measures – Absence – Error of assessment – Absence
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2023/572; Council Regulations No 269/2014 and 2023/571)
(see paragraphs 96, 104, 118, 122-128)
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 – Assessment of the legality by reference to the information available at the time of adoption of the decision – No substitution of the grounds supporting the measures under review
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2023/572; Council Regulations No 269/2014 and 2023/571)
(see paragraphs 106, 111, 112, 115, 116)
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 by virtue of his support for actions and policies compromising the territorial integrity of Ukraine and his material and financial support for Russian decision-makers – Documents available to the public – Probative value
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2023/572; Council Regulations No 269/2014 and 2023/571)
(see paragraphs 108-110)
7.
EU law – Principles – Rights of the defence – Right to effective judicial protection – Restrictive measures taken in view of the situation in Ukraine – Right to a prior formal hearing – Absence
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2023/572; Council Regulations No 269/2014 and 2023/571)
(see paragraph 139)
8.
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 of persons associated with them – Rights of the defence – Subsequent decision maintaining the name of the applicant on the list of persons covered by those measures – Disclosure by the Council to the person concerned of new evidence taken into account during the periodic review of the restrictive measures – Infringement of the right to be heard – Absence
(Council Decision 2014/145/CFSP, as amended by Decision (CFSP) 2023/572; Council Regulations No 269/2014 and 2023/571)
(see paragraphs 141-147)
Operative part
The Court:
1.
Dismisses the action;
2.
Orders OT to bear his own costs and to pay those incurred by the Council of the European Union, including those relating to the interlocutory proceedings.