EU General Court Upholds 'Association' Sanctions Criteria
The EU General Court on Feb. 26 rejected the sanctions delisting application of Aleksandra Melnichenko, wife of sanctioned Russian billionaire Andrey Melnichenko.
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Andrey owns fertilizer giant EuroChem Group and coal company Siberian Coal Energy Co. Aleksandra was sanctioned for her association with her husband and taking advantage of the "fortune and benefits from" his wealth, namely by owning two penthouses and replacing her husband as the "beneficial owner of Firstline Trust," a company that represents the "ultimate owner of EuroChem Group."
Aleksandra made five distinct claims against her sanctions designation, including a challenge to the criterion allowing the European Council to list parties for their association with sanctioned individuals. She claimed that the concept of "association" isn't defined in the EU's regulations and that the council has failed to provide any "objective criterion to serve as guidance for the application of the association criterion or define its scope."
The court said the association criterion "is justified by the not insignificant risk that a person subject to restrictive measures may exploit his or her link with persons associated with him or her to exert pressure on them in order to circumvent the effect of the measures applying to him or her."
The court added that the EU regulations refer "in a sufficiently clear and precise manner to any natural or legal person, or any entity having a link" with a person subject to sanctions. The EU defined association as "covering any natural or legal person or any entity with a link which goes beyond a family relationship with a person or entity subject to restrictive measures."
The association criterion is also part of a "legal framework that is clearly circumscribed by the" need to "exert maximum pressure on the Russian authorities so that they bring an end to their actions and policies destabilising Ukraine," the court added.
Aleksandra also claimed that the council infringed on its obligation to state reasons for the designation, infringed on her right to defense, committed a "manifest error of assessment" and infringed on her "fundamental rights." The court rejected all remaining claims.