Russian Oligarchs and Financial Firm Face Setback in Court Over EU Sanctions, Reports Reuters

By Sudip Kar-Gupta

BRUSSELS – Two Russian oligarchs and the National Settlement Depository of Russia have faced setbacks in their legal challenges against European Union sanctions that were enacted following the invasion of Ukraine in 2022.

Since the onset of the conflict, the EU has implemented several rounds of sanctions targeting various sectors of the Russian economy. These measures include trade restrictions aimed at diminishing defense exports to Russia and significant limitations on its banking sector.

Gennady Timchenko, a prominent Russian businessman and close associate of President Vladimir Putin, along with billionaire Mikhail Fridman, had appealed against the EU’s insistence on declaring their financial assets as part of the sanctions package established after the invasion.

However, their appeals were rejected by the General Court, the second-highest court in Europe, based in Luxembourg.

The court ruled that "the need for action to counteract legal and financial arrangements facilitating the circumvention of restrictive measures justifies such obligations."

Additionally, the General Court denied an appeal from the National Settlement Depository, which operates as Russia’s counterpart to European clearing systems.