This is a judgment by the General Court regarding the restrictive measures imposed on Andrey Melnichenko by the Council of the European Union following Russia’s actions against Ukraine. Melnichenko is challenging the decisions to maintain his name on the EU’s sanctions list, which includes a freezing of funds and travel restrictions. The court ruling addresses the legality and justification of these measures.
**Structure and Main Provisions:**
The judgment addresses an action brought by Andrey Melnichenko against several Council Decisions and Implementing Regulations from 2023 to 2025 that maintained his inclusion on the EU’s sanctions list related to actions undermining Ukraine’s territorial integrity.
The structure of the judgment is as follows:
* **Background:** It outlines the history of the sanctions regime concerning Ukraine and the specific decisions that led to Melnichenko’s inclusion on the list, starting with the initial acts in March 2022.
* **Grounds for the Dispute:** Details the Council’s reasoning for maintaining Melnichenko on the list, citing his control over major companies like EuroChem and SUEK, his connections to the Russian government, and his participation in meetings with Vladimir Putin.
* **Forms of Order Sought:** Specifies the requests of Melnichenko (supported by SUEK and EuroChem) to annul the contested acts and the Council’s (supported by the Commission) request to dismiss the action.
* **Legal Analysis:** The court examines four pleas raised by Melnichenko:
* **Illegality of the listing criterion:** Melnichenko argues the criteria used to justify his inclusion on the list are unlawful.
* **Error of Assessment:** He claims the Council incorrectly assessed the facts related to his situation.
* **Infringement of Fundamental Rights:** Melnichenko contends the sanctions violate his rights to property, free movement, and conducting business.
* **Infringement of the Right to Be Heard:** He argues the Council failed to properly consider his input and conduct a thorough review.
**Main Provisions and Changes:**
* The judgment focuses on the application of restrictive measures based on Council Decisions and Implementing Regulations from September 2023 to March 2025.
* It refers to amendments made to Decision 2014/145/CFSP and Regulation (EU) No 269/2014, particularly concerning the criteria for designating individuals subject to sanctions.
* The key criterion under scrutiny is Article 2(1)(g) of Decision 2014/145, which targets “leading businesspersons operating in Russia” and those involved in economic sectors providing a substantial source of revenue to the Russian government.
* The judgment references previous decisions and amendments, such as Council Decision (CFSP) 2023/1094 and related regulations, which broadened the scope of individuals who could be sanctioned.
**Most Important Provisions for Use:**
* **Article 2(1)(g) of Decision 2014/145/CFSP:** This article, as amended, defines the criteria for designating individuals subject to restrictive measures, specifically targeting leading businesspersons operating in Russia and those involved in sectors providing substantial revenue to the Russian government.
* **The Court’s Analysis of the “Leading Businessperson” Criterion:** The court’s interpretation of what constitutes a “leading businessperson” and the level of connection required with the Russian government is crucial. The court clarifies that the Council must demonstrate that the person is a leading businessperson operating in Russia, but does not necessarily need to prove a direct link between the person and the Russian regime.
* **The Court’s Assessment of Proportionality and Fundamental Rights:** The judgment provides insight into how the court balances the objectives of the sanctions regime with the fundamental rights of individuals affected, such as the right to property and freedom to conduct a business.
* **The Council’s Obligation for Periodic Reviews:** The judgment emphasizes the Council’s duty to conduct updated assessments of the situation and to appraise the impact of restrictive measures to determine whether they have achieved their objectives.
**** This judgment is highly relevant to individuals and entities subject to EU sanctions related to the situation in Ukraine, particularly those who are considered leading businesspersons operating in Russia. It clarifies the legal standards and evidentiary requirements for maintaining individuals on the sanctions list and provides guidance on the scope and limitations of the EU’s sanctions regime.
