Judgment of the General Court (Fifth Chamber) of 7 July 2021 –

Arbuzov v Council

(Case T‑267/20)

(Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Freezing of funds – List of the persons, entities and bodies subject to the freezing of funds and economic resources – Maintenance of the applicant’s name on the list – Obligation of the Council to verify that the decision of an authority of a third State was taken in accordance with the rights of defence and the right to effective judicial protection)

1. European Union – Judicial review of the legality of the acts of the institutions – Restrictive measures taken in view of the situation in Ukraine – Freezing of funds of persons involved in the misappropriation of public funds and of natural or legal persons, bodies or organisations associated with them – Scope of the review (Art. 275, second para., TFEU; Charter of Fundamental Rights of the European Union, Arts 47 and 48; Council Decision (CFSP) 2020/373; Council Regulation 2020/370) (see paras 64, 65)

2. Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Decision to freeze funds – Adopted or maintained on the basis of a judicial procedure carried out by the authorities of a third State concerning the misappropriation of public funds or abuse of office by a public office-holder – Whether permissible – Condition – National decision adopted in accordance with the rights of the defence and the right to effective judicial protection – Council’s verification obligation – Obligation to state reasons – Scope – Third State that has acceded to the European Convention on Human Rights – Irrelevant (Council Decision 2014/119/CFSP, as amended by Council Decision (CFSP) 2020/373, Annex; Council Regulations No 208/2014, Annex I, and No 2020/370) (see paras 66-71)

3. Common foreign and security policy – Restrictive measures taken having regard to the situation in Ukraine – Decision to freeze funds – Adopted or maintained on the basis of a judicial procedure carried out by the authorities of a third State concerning the misappropriation of public funds or abuse of office by a public office-holder – Conditions – National decision adopted in accordance with the rights of the defence and the right to effective judicial protection – 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 – Council’s obligation to verify observance of the rights in question – Infringement (Council Decision 2014/119/CFSP, as amended by Council Decision (CFSP) 2020/373, Annex; Council Regulations No 208/2014, Annex I, and No 2020/370) (see paras 76, 78-85, 88-90, 92, 94-98, 109, 110)

4. EU law – Principles – Right to effective judicial protection – Duty to act within a reasonable time – Restrictive measures taken in view of the situation in Ukraine – Judicial procedure in a third country serving as the basis for the decision to adopt the restrictive measures – Council’s verification obligation – Scope (Charter of Fundamental Rights of the European Union, Arts 47 and 52(3)) (see paras 99-106)

Re:

Application under Article 263 TFEU seeking the annulment of Council Decision (CFSP) 2020/373 of 5 March 2020 amending Decision 2014/119/CFSP concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Ukraine (OJ 2020 L 71, p. 10) and of Council Implementing Regulation (EU) 2020/370 of 5 March 2020 implementing Regulation (EU) No 208/2014 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Ukraine (OJ 2020 L 71, p. 1), in so far as those acts maintain the applicant’s name on the list of persons, entities and bodies subject to those restrictive measures.

Operative part

The Court:

1. Annuls Council Decision (CFSP) 2020/373 of 5 March 2020 amending Decision 2014/119/CFSP concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Ukraine, and Council Implementing Regulation (EU) 2020/370 of 5 March 2020 implementing Regulation (EU) No 208/2014 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Ukraine, in so far as the name of Mr Sergej Arbuzov was maintained on the list of persons, entities and bodies subject to those restrictive measures;