Judgment of the General Court (Fourth Chamber) of 2 December 2020 –

Kalai v Council

(Case T‑178/19)

(Common foreign and security policy – Restrictive measures taken against Syria – Freezing of funds – Rights of the defence – Obligation to state reasons – Error of assessment – Proportionality – Right to property)

1. Judicial proceedings – Production of evidence – Time limit – Evidence lodged out of time – Conditions (Rules of Procedure of the General Court, Art. 85(1) and (3)) (see paras 39, 40)

2. Action for annulment – Pleas in law – Lack of or inadequate statement of reasons – Separate ground from the one concerning substantive legality (Arts 263 and 296, second para., TFEU) (see para. 52)

3. Acts of the institutions – Statement of reasons – Obligation – Scope – Fund-freezing measures (Art. 296, second para., TFEU) (see paras 53-57)

4. Common foreign and security policy – Restrictive measures against Syria – Freezing of funds of certain persons and entities in view of the situation in Syria – Nature of those measures – No criminal character (Council Decision (CFSP) 2019/87; Council Regulation 2019/85; Council Decision (CFSP) 2019/806; Council Regulation 2019/798; Council Decision (CFSP) 2020/719; Council Regulation 2020/716) (see para. 70)

5. EU law – Principles – Rights of defence – Decision to freeze funds taken against certain persons and entities in view of the situation in Syria – Duties of the Council – Communication to the person concerned of inculpatory evidence and the right to be heard – Scope – Non-observance – Infringement of the rights of the defence (Art. 6(1) TEU; Charter of Fundamental Rights of the European Union, Art. 41(2); Council Decision (CFSP) 2019/87; Council Regulation No 2019/85; Council Decision (CFSP) 2019/806; Council Regulation 2019/798; Council Decision (CFSP) 2020/719; Council Regulation 2020/716) (see paras 78, 79, 83-85)

6. European Union – Judicial review of the legality of the acts of the institutions – Restrictive measures against Syria – Scope of the review (Council Decision (CFSP) 2019/87; Council Regulation 2019/85; Council Decision (CFSP) 2019/806; Council Regulation 2019/798; Council Decision (CFSP) 2020/719; Council Regulation 2020/716) (see paras 95-99, 114, 149)

7. Common foreign and security policy – Restrictive measures against Syria – Freezing of funds and economic resources – Action for annulment brought by a leading businessperson operating in Syria – Addressee of a decision to freeze funds – Allocation of the burden of proof – Decision based on a series of indicators – Whether permissible – Conditions (Council Decision (CFSP) 2019/87; Council Regulation 2019/85; Council Decision (CFSP) 2019/806; Council Regulation 2019/798; Council Decision (CFSP) 2020/719; Council Regulation 2020/716) (see para. 115)

8. Common foreign and security policy – Specific restrictive measures against certain persons and entities in view of the situation in Syria – Decision 2013/255/CFSP and Regulation No 36/2012 – Presumption of support for the Syrian regime in the case of leading businesspersons operating in Syria – Whether permissible – Conditions – Rebuttable presumption – Burden of proof (Art. 29 TEU; Council Decision (CFSP) 2019/87; Council Regulation 2019/85; Council Decision (CFSP) 2019/806; Council Regulation 2019/798; Council Decision (CFSP) 2020/719; Council Regulation 2020/716) (see paras 155-157)

9. Judicial proceedings – Measures of organisation of procedure – Measures of inquiry – Discretion of the Courts of the Union – Scope (Rules of Procedure of the General Court, Arts 88, 91 to 104) (see para. 189)

Re:

First, application under Article 263 TFEU for annulment of Council Implementing Decision (CFSP) 2019/87 of 21 January 2019 implementing Decision 2013/255/CFSP concerning restrictive measures against Syria (OJ 2019 L 18 I, p. 13), Council Implementing Regulation (EU) 2019/85 of 21 January 2019 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria (OJ 2019 L 18 I, p. 4), Council Decision (CFSP) 2019/806 of 17 May 2019 amending Decision 2013/255/CFSP concerning restrictive measures against Syria (OJ 2019 L 132, p. 36), Council Implementing Regulation (EU) 2019/798 of 17 May 2019 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria (OJ 2019 L 132, p. 1), Council Decision (CFSP) 2020/719 of 28 May 2020 amending Decision 2013/255/CFSP concerning restrictive measures against Syria (OJ 2020 L 168, p. 66), and of Council Implementing Regulation (EU) 2020/716 of 28 May 2020 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria (OJ 2020 L 168, p. 1), in so far as those acts are addressed to the applicant, and, second, application under Article 268 TFEU seeking compensation in respect of the harm allegedly suffered by the applicant on account of those acts,

Operative part

The Court:

1. Dismisses the action;