Judgment of the General Court (Fifth Chamber) of 31 January 2019 –

Alkarim for Trade and Industry v Council

(Case T‑667/17)

(Common Foreign and Security Policy — Restrictive measures adopted against Syria — Freezing of funds — Error of assessment — Temporal adjustment of the effects of an annulment)

1. European Union — Judicial review of the legality of the acts of the institutions — Restrictive measures against Syria — 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 grounds relied on against the persons or entities concerned are well founded (Charter of Fundamental Rights of the European Union, Art. 47; Council Decisions 2013/255/CFSP, (CFSP) 2017/1245 and (CFSP) 2018/778; Council Regulations No 36/2012, 2017/1241 and 2018/774) (see paras 37-39)

2. Common foreign and security policy — Restrictive measures against Syria — Freezing of funds and restrictions on admission of persons, entities or organisations associated with the Syrian regime — Measure extended to entities owned or controlled by such a person — Condition — Acts instituting restrictive measures which provide for their application to owned or controlled entities — Judgment annulling the restrictive measures in respect of the person — Scope — Annulment of the restrictive measures in respect of the entities owned or controlled by that person (Council Decisions 2013/255/CFSP, Art. 28(1), (CFSP) 2017/1245 and (CFSP) 2018/778; Council Regulations No 36/2012, 2017/1241 and 2018/774) (see paras 41-45)

3. Action for annulment — Judgment annulling a measure — Effects — Limitation by the Court — Restrictive measures against Syria — Annulment of two regulations and two decisions concerning restrictive measures — Risk of legal certainty being seriously affected –Maintenance of the effects of the decisions until expiry of the time limit for an appeal or the dismissal of an appeal (Art. 264, second para., TFEU; Statute of the Court of Justice, Arts 56, first para. and 60, second para.; Council Decisions 2013/255/CFSP, (CFSP) 2017/1245 and (CFSP) 2018/778; Council Regulations Nos 36/2012, 2017/1241 and 2018/774) (see paras 47-53)

Re:

Application on the basis of Article 263 TFEU seeking the annulment of Council Implementing Decision (CFSP) 2017/1245 of 10 July 2017 implementing Decision 2013/255/CFSP concerning restrictive measures against Syria (OJ 2017 L 178, p. 13), of Council Implementing Regulation (EU) 2017/1241 of 10 July 2017 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria (OJ 2017 L 178, p. 1), of Council Decision (CFSP) 2018/778 of 28 May 2018 amending Decision 2013/255/CFSP concerning restrictive measures against Syria (OJ 2018 L 131, p. 16) and of Council Implementing Regulation (EU) No 2018/774 of 28 May 2018 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria (OJ 2018 L 131, p. 1), in so far as those measures relate to the applicant.

Operative part

The Court:

1. Annuls Council Implementing Decision (CFSP) 2017/1245 of 10 July 2017 implementing Decision 2013/255/CFSP concerning restrictive measures against Syria, Council Decision (CFSP) 2018/778 of 28 May 2018 amending Decision 2013/255/CFSP concerning restrictive measures against Syria and Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria and repealing Regulation (EU) No 442/2011, as last amended by Council Implementing Regulation (EU) 2017/1241 of 10 July 2017 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria and by Council Implementing Regulation (EU) 2018/774 of 28 May 2018 implementing Regulation No 36/2012 concerning restrictive measures in view of the situation in Syria, in so far as they relate to Alkarim for Trade and Industry LLC;

2. Orders that the effects of Implementing Decision 2017/1245 and Decision 2018/778 be maintained with regard to Alkarim for Trade and Industry until the expiry of the period for bringing an appeal or, if an appeal is lodged during that period, until any dismissal of that appeal;