Judgment of the General Court (Fifth Chamber) of 23 September 2020 –

Arbuzov v Council

(Case T‑289/19)

(Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Freezing of funds – List of persons, entities and bodies subject to the freezing of funds and economic resources – Maintenance of the applicant’s name on the list – Council’s obligation to verify that the decision of an authority of a third State respected the rights of the 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 having regard to 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, Art. 47; Council Decision (CFSP) 2019/354; Council Regulation 2019/352) (see paras 60, 61)

2. 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 – 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 (Art. 6(3) TEU; Charter of Fundamental Rights of the European Union, Art. 47; Council Decision (CFSP) 2019/354; Council Regulation 2019/352) (see paras 62-67, 85, 87-89, 94)

3. Action for annulment – Pleas in law – Lack of or inadequate statement of reasons – Separate ground from the one concerning substantive legality (Arts 256 and 296 TFEU) (see para. 70)

4. EU law – Principles – Right to effective judicial protection – Duty to act within a reasonable time – Restrictive measures taken having regard to 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, Art. 47; Council Decision (CFSP) 2019/354; Council Regulation 2019/352) (see paras 91-93)

Re:

Application under Article 263 TFEU for annulment of Council Decision (CFSP) 2019/354 of 4 March 2019 amending Decision 2014/119/CFSP concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Ukraine (OJ 2019 L 64, p.7) and of Council Implementing Regulation (EU) 2019/352 of 4 March 2019 implementing Regulation (EU) No 208/2014 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Ukraine (OJ 2019 L 64, p. 1), in so far as those acts maintain the applicant’s name on the list of the persons, entities and bodies subject to those restrictive measures.

Operative part

The Court:

1. Annuls Council Decision (CFSP) 2019/354 of 4 March 2019 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) 2019/352 of 4 March 2019 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 Sergej Arbuzov’s name has been maintained on the list of persons, entities and bodies subject to those restrictive measures;