Russian oligarchs and financial firm lose court challenge against EU sanctions

Russian oligarchs and financial firm lose court challenge against EU sanctions

By Sudip Kar-Gupta

Two Russian oligarchs and the country's National Settlement Depository company on Wednesday lost legal challenges against European Union sanctions imposed on them after Russia's 2022 invasion of Ukraine.

The EU has imposed multiple rounds of sanctions since Russia invaded Ukraine. They include trade restrictions to cut defence and other exports to Russia, as well as restrictions on Russia's banking sector, among others.

Sanctions had been imposed upon Gennady Timchenko, a Russian tycoon and long-time ally of President Vladimir Putin, and upon billionaire Mikhail Fridman.

Timchenko and Fridman had appealed against an EU demand to declare their funds or economic resources as part of EU sanctions adopted after Russia's invasion of Ukraine.

However, their arguments were dismissed by the Luxembourg-based General Court, which is Europe's second-highest court.

"The need for action to counteract legal and financial arrangements facilitating the circumvention of restrictive measures justifies such obligations," it said in a ruling.

The EU's General Court also threw out an appeal by Russia's National Settlement Depository, which is the country's equivalent of the Euroclear and Clearstream clearing houses.