Judgment of the General Court (Fifth Chamber) of 16 December 2020 –

Azarov v Council

(Case T‑286/19)

(Common foreign and security policy – Restrictive measures taken in view of the situation in Ukraine – Freezing of funds – List of persons, entities and bodies covered by 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 was taken in accordance with 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, Arts 47 and 48; Council Decision (CFSP) 2019/354; Council Regulation (EU) 2019/352) (see paras 75, 76)

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; Council Decision (CFSP) 2019/354; Council Regulation (EU) 2019/352) (see paras 78-82)

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 held against the persons or entities concerned are well founded – Council’s obligation to verify observance of the rights in question – Infringement (Council Decision (CFSP) 2019/354; Council Regulation (EU) 2019/352) (see paras 87, 89-98, 101, 102, 110, 111, 122)

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) (see paras 114-118)

Re:

Application under Article 263 TFEU seeking the 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 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 the applicant’s name was maintained on the list of 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 the name Mr. Mykola Yanovych Azarov was maintained on the list of persons, entities and bodies subject to those restrictive measures;