Judgment of the General Court (Ninth Chamber) of 25 January 2017 —

Almaz-Antey Air and Space Defence v Council

(Case T‑255/15)

(Common foreign and security policy — Restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine — Freezing of funds — Legal person supporting, materially or financially, actions which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine — Proportionality — Obligation to state reasons — Rights of the defence — Right to effective judicial protection — Fundamental rights — Manifest error of assessment)

1. Actions for annulment — Jurisdiction of the EU judicature — Claim for a declaratory judgment — Inadmissibility (Art. 263 TFEU) (see para. 31)

2. Judicial proceedings — Decision replacing the contested decision during the proceedings — New factor — Extension of the initial pleadings (Rules of Procedure of the General Court, Art. 86(1)) (see paras 35, 36)

3. Actions for annulment — Interest in bringing proceedings — Interest to be assessed at the time at which an action is brought — Action brought against an act imposing restrictive measures on the applicant — Restrictive measures ending during the proceedings — Declaration that no need to adjudicate — Not permissible — Applicant maintaining an interest in obtaining recognition that the contested act unlawful (Art. 263 TFEU; Council Decisions 2014/145/CFSP, 2015/432/CFSP and 2015/1524/CFSP; Council Regulations No 269/2014, No 2015/427 and No 2015/1514) (see paras 43-45)

4. Acts of the institutions — Statement of reasons — Obligation — Scope — Restrictive measures taken against certain persons and entities in view of the situation in Ukraine — Freezing of funds — Obligation to communicate the reasoning to the person concerned at the same time as the measure adversely affecting him or immediately thereafter — Correction of an error of reasoning during the proceedings before the Court — Not permissible (Art. 296, second para., TFEU; Charter of Fundamental Rights of the European Union, Art. 41(2); Council Decisions 2014/145/CFSP, 2015/432/CFSP, 2015/1524/CFSP and 2016/359/CFSP; Council Regulations No 269/2014, No 2015/427, No 2015/1514 and No 2016/353) (see para. 54)

5. Acts of the institutions — Statement of reasons — Obligation — Scope — Restrictive measures taken against certain persons and entities in view of the situation in Ukraine — Freezing of funds — Obligation to communicate the reasoning to the person concerned at the same time as the measure adversely affecting him or immediately thereafter — Limits — Safety of the Union and the Member States or conduct of their international relations — Decision falling within a context known to the person concerned, enabling him to understand the scope of the measure taken against him — Whether summary statement of reasons sufficient (Art. 296, second para., TFEU; Council Decisions 2014/145/CFSP, 2015/432/CFSP, 2015/1524/CFSP and 2016/359/CFSP; Council Regulations No 269/2014, No 2015/427, No 2015/1514 and No 2016/353) (see paras 55, 56)

6. Actions for annulment — Grounds — Lack of or inadequate statement of reasons — Separate ground from the one concerning substantive legality (Arts 263 TFEU and 296 TFEU) (see para. 61)

7. EU law — Principles — Rights of defence — Right to effective judicial protection — Restrictive measures taken against certain persons and entities in view of the situation in Ukraine — Freezing of funds — Obligation to disclose individual and specific grounds for the decisions adopted — Scope (Charter of Fundamental Rights of the European Union, Arts 41(2)(a), and 47; Council Decisions 2014/145/CFSP 2015/432/CFSP, 2015/1524/CFSP and 2016/359/CFSP; Council Regulations No 269/2014, No 2015/427, No 2015/1514 and No 2016/353) (see paras 66-72)

8. EU law — Principles — Rights of defence — Restrictive measures taken against certain persons and entities in view of the situation in Ukraine — Freezing of funds — Right of access to documents — Rights subject to an application in that behalf before the Council (Charter of Fundamental Rights of the European Union, Art. 41(2)(a); Council Decisions 2014/145/CFSP, 2015/432/CFSP, 2015/1524/CFSP and 2016/359/CFSP; Council Regulations No 269/2014, No 2015/427, No 2015/1514 and No 2016/353) (see paras 80, 83)

9. Common foreign and security policy — Restrictive measures taken having regard to the situation in Ukraine — Freezing of funds of certain persons and entities having regard to the situation in Ukraine — Judicial review of the legality of the acts of the institutions — Scope — Observance of the principle of proportionality (Arts 21 and 29 TEU; Art. 215 TFEU; Charter of Fundamental Rights of the European Union, Art. 47; Council Decisions 2014/145/CFSP, 2015/432/CFSP, 2015/1524/CFSP and 2016/359/CFSP; Council Regulations No 269/2014, No 2015/427, No 2015/1514 and No 2016/353) (see paras 84, 95, 97-111, 116, 127)

10. European Union — Judicial review of the legality of the acts of the institutions — Restrictive measures taken having regard to the situation in Ukraine — Ambit of the review — Proof the measure well-founded — Obligation on the competent EU authority to establish, in the event of challenge, that the grounds held against the persons or entities concerned well-founded (Art. 29 TEU; Charter of Fundamental Rights of the European Union, Art. 47; Council Decisions 2014/145/CFSP, 2015/432/CFSP, 2015/1524/CFSP and 2016/359/CFSP; Council Regulations No 269/2014, No 2015/427, No 2015/1514 and No 2016/353) (see paras 128, 151)

Re:

APPLICATION, based on Article 263 TFEU, for annulment of Council Decision (CFSP) 2015/432 of 13 March 2015 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (OJ 2015 L 70, p. 47), Council Implementing Regulation (EU) 2015/427 of 13 March 2015 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (OJ 2015 L 70, p. 1), Council Decision (CFSP) 2015/1524 of 14 September 2015 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (OJ 2015 L 239, p. 157), Council Implementing Regulation (EU) 2015/1514 of 14 September 2015, implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (OJ 2015 L 239, p. 30), Council Decision (CFSP) 2016/359 of 10 March 2016 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (OJ 2016 L 67, p. 37), Council Implementing Regulation (EU) 2016/353 of 10 March 2016 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (OJ 2016 L 67, p. 1) and the Council’s letter of 31 July 2015, in so far as those measures concern the applicant and retain it on the list of entities subject to restrictive measures.

Operative part

The Court:

1. Dismisses the action;