{"attribution":{"source":"legal.exploreworldai.com","canonical":"https://legal.exploreworldai.com/api/public/v1/judgment-text?id=eu:c-801-24-p","cite_as":"NovaCopilot, legal.exploreworldai.com (https://legal.exploreworldai.com/api/public/v1/judgment-text?id=eu:c-801-24-p)","license":"https://legal.exploreworldai.com/revision","version":"legal-2026-10-23","fingerprint":"ewai:eu:b67bfc","proof":"sha256:5b1aedae859c35f87986ba807113fb8bb5cdacb09d1b3eff4e6d34bbfdec1654","jurisdiction":"eu","lang":"en","publisher":"NovaCopilot by ExploreWorld Legal","terms":"https://legal.exploreworldai.com/om"},"brand_source":"Source: NovaCopilot","item":{"schema_version":"1.0.0","id":"eu:c-801-24-p","jurisdiction":"eu","lang":"en","brand_source":"Source: NovaCopilot","brand":{"product":"NovaCopilot","platform":"ExploreWorldAI","infrastructure":"ExploreWorld Legal","infrastructure_url":"legal.exploreworldai.com","legal_entity":"Valkiv Ventures AB","permanent_url":"https://legal.exploreworldai.com/novacopilot","source":"Source: NovaCopilot","powered_by":"Powered by NovaCopilot","license":"https://legal.exploreworldai.com/licensvillkor"},"sections":[{"title":"62024CJ0801","paragraphs":[]},{"title":"JUDGMENT OF THE COURT (Fourth Chamber)","paragraphs":[]},{"title":"11 June 2026 (\n *1\n )","paragraphs":["para_4","para_5","para_6","para_7","para_8","para_9","para_10","para_11","para_12","para_13","para_14","para_15","para_16","para_17","para_18","para_19","para_20"]},{"title":"Judgment","paragraphs":[]},{"title":"1","paragraphs":["para_23","para_24","para_25","para_26","para_27","para_28","para_29","para_30"]},{"title":"I.   Legal context and background to the dispute","paragraphs":[]},{"title":"2","paragraphs":["para_33"]},{"title":"3","paragraphs":["para_35"]},{"title":"4","paragraphs":["para_37"]},{"title":"5","paragraphs":["para_39"]},{"title":"6","paragraphs":["para_41"]},{"title":"7","paragraphs":["para_43"]},{"title":"A.   Decision 2022/329","paragraphs":[]},{"title":"8","paragraphs":[]},{"title":"Recitals 5 and 9 to 11 of Decision 2022/329 state:","paragraphs":["para_47","para_48","para_49"]},{"title":"(9)","paragraphs":["para_51"]},{"title":"(10)","paragraphs":["para_53"]},{"title":"(11)","paragraphs":["para_55"]},{"title":"B.   Decision 2014/145","paragraphs":[]},{"title":"9","paragraphs":["para_58","para_59","para_60"]},{"title":"(f)","paragraphs":["para_62","para_63","para_64"]},{"title":"10","paragraphs":["para_66"]},{"title":"11","paragraphs":["para_68"]},{"title":"C.   Regulation No 269/2014","paragraphs":[]},{"title":"12","paragraphs":["para_71"]},{"title":"13","paragraphs":["para_73"]},{"title":"14","paragraphs":["para_75"]},{"title":"D.   Regulation No 833/2014","paragraphs":[]},{"title":"15","paragraphs":["para_78","para_79","para_80"]},{"title":"(o)","paragraphs":["para_82","para_83"]},{"title":"16","paragraphs":[]},{"title":"In its original version, Article 4(3)(b) of Regulation No 833/2014 was worded as follows:","paragraphs":["para_86","para_87"]},{"title":"(b)","paragraphs":["para_89"]},{"title":"17","paragraphs":["para_91"]},{"title":"E.   Regulation No 909/2014","paragraphs":[]},{"title":"18","paragraphs":["para_94","para_95"]},{"title":"F.   The acts at issue","paragraphs":[]},{"title":"1.\n  \n The initial acts at issue","paragraphs":[]},{"title":"19","paragraphs":["para_99"]},{"title":"20","paragraphs":[]},{"title":"Recital 2 of those acts states:","paragraphs":["para_102"]},{"title":"21","paragraphs":["para_104","para_105","para_106","para_107"]},{"title":"22","paragraphs":["para_109"]},{"title":"23","paragraphs":["para_111"]},{"title":"24","paragraphs":["para_113"]},{"title":"2.\n  \n The first maintaining acts at issue","paragraphs":[]},{"title":"25","paragraphs":["para_116"]},{"title":"26","paragraphs":["para_118"]},{"title":"27","paragraphs":["para_120"]},{"title":"3.\n  \n The second maintaining acts at issue","paragraphs":[]},{"title":"28","paragraphs":["para_123"]},{"title":"29","paragraphs":["para_125"]},{"title":"II.   The action before the General Court and the judgment under appeal","paragraphs":[]},{"title":"30","paragraphs":["para_128"]},{"title":"31","paragraphs":["para_130"]},{"title":"32","paragraphs":["para_132"]},{"title":"33","paragraphs":["para_134"]},{"title":"III.   Forms of order sought by the parties to the appeal","paragraphs":[]},{"title":"34","paragraphs":[]},{"title":"By its appeal, the appellant claims, in essence, that the Court should:","paragraphs":["para_138","para_139","para_140","para_141","para_142","para_143"]},{"title":"35","paragraphs":[]},{"title":"The Council, supported by the Commission, claims that the Court should:","paragraphs":["para_146","para_147","para_148","para_149"]},{"title":"IV.   The appeal","paragraphs":[]},{"title":"36","paragraphs":["para_152"]},{"title":"A.   The first ground of appeal, alleging infringement of the obligation to state reasons","paragraphs":[]},{"title":"1.\n  \n Arguments of the parties","paragraphs":[]},{"title":"37","paragraphs":["para_156"]},{"title":"38","paragraphs":["para_158"]},{"title":"39","paragraphs":["para_160"]},{"title":"40","paragraphs":["para_162"]},{"title":"41","paragraphs":["para_164"]},{"title":"2.\n  \n Findings of the Court","paragraphs":[]},{"title":"42","paragraphs":["para_167"]},{"title":"43","paragraphs":["para_169"]},{"title":"44","paragraphs":["para_171"]},{"title":"45","paragraphs":["para_173"]},{"title":"46","paragraphs":["para_175"]},{"title":"47","paragraphs":["para_177"]},{"title":"48","paragraphs":["para_179"]},{"title":"49","paragraphs":["para_181"]},{"title":"50","paragraphs":["para_183"]},{"title":"51","paragraphs":["para_185"]},{"title":"52","paragraphs":["para_187"]},{"title":"53","paragraphs":["para_189"]},{"title":"54","paragraphs":["para_191"]},{"title":"55","paragraphs":["para_193"]},{"title":"56","paragraphs":["para_195"]},{"title":"B.   The second ground of appeal, alleging misinterpretation of the (f) criterion","paragraphs":[]},{"title":"57","paragraphs":["para_198"]},{"title":"1.\n  \n First part of the second ground of appeal","paragraphs":[]},{"title":"(a)\n  \n Arguments of the parties","paragraphs":[]},{"title":"58","paragraphs":["para_202"]},{"title":"59","paragraphs":["para_204"]},{"title":"60","paragraphs":["para_206"]},{"title":"61","paragraphs":["para_208"]},{"title":"62","paragraphs":["para_210"]},{"title":"(b)\n  \n Findings of the Court","paragraphs":[]},{"title":"63","paragraphs":["para_213"]},{"title":"64","paragraphs":["para_215"]},{"title":"65","paragraphs":["para_217"]},{"title":"66","paragraphs":["para_219"]},{"title":"67","paragraphs":["para_221"]},{"title":"68","paragraphs":["para_223"]},{"title":"69","paragraphs":["para_225"]},{"title":"70","paragraphs":["para_227"]},{"title":"71","paragraphs":["para_229"]},{"title":"72","paragraphs":["para_231"]},{"title":"73","paragraphs":["para_233"]},{"title":"74","paragraphs":["para_235"]},{"title":"75","paragraphs":["para_237"]},{"title":"76","paragraphs":["para_239"]},{"title":"77","paragraphs":["para_241"]},{"title":"78","paragraphs":["para_243"]},{"title":"79","paragraphs":["para_245"]},{"title":"80","paragraphs":["para_247"]},{"title":"2.\n  \n Second part of the second ground of appeal","paragraphs":[]},{"title":"(a)\n  \n Arguments of the parties","paragraphs":[]},{"title":"81","paragraphs":["para_251"]},{"title":"82","paragraphs":["para_253"]},{"title":"83","paragraphs":["para_255"]},{"title":"84","paragraphs":["para_257"]},{"title":"(b)\n  \n Findings of the Court","paragraphs":[]},{"title":"(1)   Admissibility","paragraphs":[]},{"title":"85","paragraphs":["para_261"]},{"title":"86","paragraphs":["para_263"]},{"title":"87","paragraphs":["para_265"]},{"title":"(2)   Substance","paragraphs":[]},{"title":"88","paragraphs":["para_268"]},{"title":"89","paragraphs":["para_270"]},{"title":"90","paragraphs":["para_272"]},{"title":"91","paragraphs":["para_274"]},{"title":"92","paragraphs":["para_276"]},{"title":"93","paragraphs":["para_278"]},{"title":"94","paragraphs":["para_280"]},{"title":"95","paragraphs":["para_282"]},{"title":"96","paragraphs":["para_284","para_285"]},{"title":"97","paragraphs":["para_287"]},{"title":"1.\n  \n First part of the third ground of appeal","paragraphs":[]},{"title":"(a)\n  \n Arguments of the parties","paragraphs":[]},{"title":"98","paragraphs":["para_291"]},{"title":"99","paragraphs":["para_293"]},{"title":"100","paragraphs":["para_295"]},{"title":"101","paragraphs":["para_297"]},{"title":"102","paragraphs":["para_299"]},{"title":"103","paragraphs":["para_301"]},{"title":"(b)\n  \n Findings of the Court","paragraphs":[]},{"title":"(1)   Admissibility","paragraphs":[]},{"title":"104","paragraphs":["para_305"]},{"title":"105","paragraphs":["para_307"]},{"title":"106","paragraphs":["para_309"]},{"title":"107","paragraphs":["para_311"]},{"title":"108","paragraphs":["para_313"]},{"title":"(2)   Substance","paragraphs":[]},{"title":"109","paragraphs":["para_316"]},{"title":"110","paragraphs":["para_318"]},{"title":"111","paragraphs":["para_320"]},{"title":"112","paragraphs":["para_322"]},{"title":"113","paragraphs":["para_324"]},{"title":"114","paragraphs":["para_326"]},{"title":"115","paragraphs":["para_328"]},{"title":"116","paragraphs":["para_330"]},{"title":"117","paragraphs":["para_332"]},{"title":"118","paragraphs":["para_334"]},{"title":"119","paragraphs":["para_336"]},{"title":"120","paragraphs":["para_338"]},{"title":"2.\n  \n Second part of the third ground of appeal","paragraphs":[]},{"title":"(a)\n  \n Arguments of the parties","paragraphs":[]},{"title":"121","paragraphs":["para_342"]},{"title":"122","paragraphs":["para_344"]},{"title":"123","paragraphs":["para_346"]},{"title":"124","paragraphs":["para_348"]},{"title":"125","paragraphs":["para_350"]},{"title":"(b)\n  \n Findings of the Court","paragraphs":[]},{"title":"126","paragraphs":["para_353"]},{"title":"127","paragraphs":["para_355"]},{"title":"128","paragraphs":["para_357"]},{"title":"129","paragraphs":["para_359"]},{"title":"130","paragraphs":["para_361"]},{"title":"131","paragraphs":["para_363"]},{"title":"132","paragraphs":["para_365"]},{"title":"133","paragraphs":["para_367"]},{"title":"134","paragraphs":["para_369"]},{"title":"135","paragraphs":["para_371"]},{"title":"136","paragraphs":["para_373"]},{"title":"V.   Costs","paragraphs":[]},{"title":"137","paragraphs":["para_376"]},{"title":"138","paragraphs":["para_378"]},{"title":"139","paragraphs":["para_380"]},{"title":"140","paragraphs":["para_382"]},{"title":"On those grounds, the Court (Fourth Chamber) hereby:","paragraphs":["para_384"]},{"title":"Dismisses the appeal;","paragraphs":["para_386","para_387","para_388","para_389"]},{"title":"Jarukaitis","paragraphs":[]},{"title":"Condinanzi","paragraphs":[]},{"title":"Jääskinen","paragraphs":[]},{"title":"Frendo","paragraphs":[]},{"title":"Kornezov","paragraphs":["para_395"]},{"title":"A. Calot Escobar","paragraphs":[]},{"title":"Registrar","paragraphs":[]},{"title":"I. Jarukaitis","paragraphs":[]},{"title":"President of the Chamber","paragraphs":["para_400"]}],"paragraphs":[{"text":"62024CJ0801","paragraph_id":"para_1"},{"text":"JUDGMENT OF THE COURT (Fourth Chamber)","paragraph_id":"para_2"},{"text":"11 June 2026 (\n *1\n )","paragraph_id":"para_3"},{"text":"(Appeal – Restrictive measures taken in view of the military aggression against Ukraine – Decision 2014/145/CFSP – Article 2(1)(f) – Regulation (EU) No 269/2014 – Article 3(1)(f) – Freezing of funds and economic resources – Concept of ‘supporting, materially or financially, … the Government of the R …","paragraph_id":"para_4"},{"text":"In Case C‑801/24 P,","paragraph_id":"para_5"},{"text":"APPEAL under Article 56 of the Statute of the Court of Justice of the European Union, brought on 20 November 2024,","paragraph_id":"para_6"},{"text":"NKO AO National Settlement Depository (NSD) , established in Moscow (Russia), represented by E. Épron and A. Genko, avocats,","paragraph_id":"para_7"},{"text":"appellant,","paragraph_id":"para_8"},{"text":"the other parties to the proceedings being:","paragraph_id":"para_9"},{"text":"Council of the European Union , represented by L. Berger and E. Nadbath, acting as Agents,","paragraph_id":"para_10"},{"text":"defendant at first instance,","paragraph_id":"para_11"},{"text":"European Commission , represented by M. Carpus-Carcea, L. Mantl and G. von Rintelen, acting as Agents,","paragraph_id":"para_12"},{"text":"intervener at first instance,","paragraph_id":"para_13"},{"text":"THE COURT (Fourth Chamber),","paragraph_id":"para_14"},{"text":"composed of I. Jarukaitis, President of the Chamber, M. Condinanzi, N. Jääskinen, R. Frendo (Rapporteur) and A. Kornezov, Judges,","paragraph_id":"para_15"},{"text":"Advocate General: L. Medina,","paragraph_id":"para_16"},{"text":"Registrar: A. Calot Escobar,","paragraph_id":"para_17"},{"text":"having regard to the written procedure,","paragraph_id":"para_18"},{"text":"after hearing the Opinion of the Advocate General at the sitting on 15 January 2026,","paragraph_id":"para_19"},{"text":"gives the following","paragraph_id":"para_20"},{"text":"Judgment","paragraph_id":"para_21"},{"text":"1","paragraph_id":"para_22"},{"text":"By its appeal, NKO AO National Settlement Depository (NSD) seeks the setting aside of the judgment of the General Court of the European Union of 11 September 2024, NSD v Council ( T‑494/22 , the judgment under appeal, EU:T:2024:607 ), by which the General Court dismissed its action seeking annulment:","paragraph_id":"para_23"},{"text":"–","paragraph_id":"para_24"},{"text":"of Council Decision (CFSP) 2022/883 of 3 June 2022 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine ( OJ 2022 L 153, p. 92 ) and of Council Implementing Regulation (EU) …","paragraph_id":"para_25"},{"text":"–","paragraph_id":"para_26"},{"text":"of Council Decision (CFSP) 2023/572 of 13 March 2023 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine ( OJ 2023 L 75 I, p. 134) and of Council Implementing Regulation (E …","paragraph_id":"para_27"},{"text":"–","paragraph_id":"para_28"},{"text":"of Council Decision (CFSP) 2023/1767 of 13 September 2023 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine ( OJ 2023 L 226, p. 104 ) and of Council Implementing Regulati …","paragraph_id":"para_29"},{"text":"in so far as all those acts (‘the acts at issue’) concern it.","paragraph_id":"para_30"},{"text":"I.   Legal context and background to the dispute","paragraph_id":"para_31"},{"text":"2","paragraph_id":"para_32"},{"text":"The factual and legal context of the dispute is set out in paragraphs 2 to 20 of the judgment under appeal and can be specified in summary as follows.","paragraph_id":"para_33"},{"text":"3","paragraph_id":"para_34"},{"text":"The appellant is a company incorporated under Russian law, which is a licensed depository providing securities record-keeping and custody services as the central depository in Russia and which also provides financial services, in particular as a non-bank credit institution licensed to provide bank settlement services.","paragraph_id":"para_35"},{"text":"4","paragraph_id":"para_36"},{"text":"The present case arises in the context of restrictive measures adopted by the European Union since 2014 in response to actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.","paragraph_id":"para_37"},{"text":"5","paragraph_id":"para_38"},{"text":"On 17 March 2014, under Article 29 TEU, the Council of the European Union adopted Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine ( OJ 2014 L 78, p. 16 ).","paragraph_id":"para_39"},{"text":"6","paragraph_id":"para_40"},{"text":"On the same date, on the basis of Article 215(2) TFEU, the Council adopted Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine ( OJ 2014 L 78, p. 6 ).","paragraph_id":"para_41"},{"text":"7","paragraph_id":"para_42"},{"text":"Following the invasion of Ukraine by the armed forces of the Russian Federation on 24 February 2022, on 25 February 2022, the Council adopted Decision (CFSP) 2022/329 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial inte …","paragraph_id":"para_43"},{"text":"A.   Decision 2022/329","paragraph_id":"para_44"},{"text":"8","paragraph_id":"para_45"},{"text":"Recitals 5 and 9 to 11 of Decision 2022/329 state:","paragraph_id":"para_46"},{"text":"‘(5)","paragraph_id":"para_47"},{"text":"On 24 January 2022, … the Council reiterated that any further military aggression by Russia against Ukraine would have massive consequences and severe costs, including a wide array of sectoral and individual restrictive measures that would be adopted in coordination with partners.","paragraph_id":"para_48"},{"text":"…","paragraph_id":"para_49"},{"text":"(9)","paragraph_id":"para_50"},{"text":"On 24 February 2022, the President of the Russian Federation announced a military operation in Ukraine and Russian armed forces began an attack on Ukraine. That attack is a blatant violation of the territorial integrity, sovereignty and independence of Ukraine.","paragraph_id":"para_51"},{"text":"(10)","paragraph_id":"para_52"},{"text":"On 24 February 2022, the High Representative [of the European Union for Foreign Affairs and Security Policy] issued a declaration on behalf of the [European] Union condemning in the strongest possible terms the unprovoked invasion of Ukraine by armed forces of the Russian Federation and the involvement of Belarus in this aggression against Ukraine. The High Representative indicated that the Union’s response will include both sectoral and individual restrictive measures.","paragraph_id":"para_53"},{"text":"(11)","paragraph_id":"para_54"},{"text":"In view of the gravity of the situation, the Council considers that the criteria of designation should be amended to include persons and entities supporting and benefitting from the Government of the Russian Federation as well as persons and entities providing a substantial source of revenue to it, and natural or legal persons associated with listed persons or entities.’","paragraph_id":"para_55"},{"text":"B.   Decision 2014/145","paragraph_id":"para_56"},{"text":"9","paragraph_id":"para_57"},{"text":"Article 2(1)(f) of Decision 2014/145, as amended by Decision 2022/329 (‘Decision 2014/145’), reads as follows:","paragraph_id":"para_58"},{"text":"‘All funds and economic resources belonging to, or owned, held or controlled by:","paragraph_id":"para_59"},{"text":"…","paragraph_id":"para_60"},{"text":"(f)","paragraph_id":"para_61"},{"text":"natural or legal persons, entities or bodies supporting, materially or financially, or benefitting from the Government of the Russian Federation, which is responsible for the annexation of Crimea and the destabilisation of Ukraine [‘the (f) criterion’]; …","paragraph_id":"para_62"},{"text":"…","paragraph_id":"para_63"},{"text":"and natural or legal persons, entities or bodies associated with them, as listed in the Annex, shall be frozen.’","paragraph_id":"para_64"},{"text":"10","paragraph_id":"para_65"},{"text":"Article 2(5) of Decision 2014/145 provides, in essence, that the freezing of the funds and economic resources of a natural or legal person, entity or body does not prevent that person, entity or body from making a payment due under a contract entered into before the date on which that person, entity …","paragraph_id":"para_66"},{"text":"11","paragraph_id":"para_67"},{"text":"Under the third paragraph of Article 6 of that decision, the decision is to be kept under constant review and is to be renewed, or amended as appropriate, if the Council deems that its objectives have not been met.","paragraph_id":"para_68"},{"text":"C.   Regulation No 269/2014","paragraph_id":"para_69"},{"text":"12","paragraph_id":"para_70"},{"text":"Article 3(1)(f) of Regulation No 269/2014, as amended by Regulation 2022/330 (‘Regulation No 269/2014’), establishes a criterion identical to the (f) criterion with a view to funds and economic resources belonging to natural or legal persons, entities or bodies satisfying that criterion being frozen pursuant to Article 2(1) of that regulation.","paragraph_id":"para_71"},{"text":"13","paragraph_id":"para_72"},{"text":"Article 6(1) of Regulation No 269/2014 establishes that, provided that a payment by a natural or legal person, entity or body listed in Annex I to that regulation is due under a contract or agreement concluded by, or under an obligation that arose for, the natural or legal person, entity or body con …","paragraph_id":"para_73"},{"text":"14","paragraph_id":"para_74"},{"text":"Article 14(4) of Regulation No 269/2014 provides that the list in Annex I to that regulation is to be reviewed at regular intervals and at least every 12 months.","paragraph_id":"para_75"},{"text":"D.   Regulation No 833/2014","paragraph_id":"para_76"},{"text":"15","paragraph_id":"para_77"},{"text":"Article 1 of Council Regulation (EU) No 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine ( OJ 2014 L 229, p. 1 ), as amended by Council Regulation (EU) 2022/328 of 25 February 2022 ( OJ 2022 L 49, p. 1 ) (‘Regulation No 833/2014’), provides:","paragraph_id":"para_78"},{"text":"‘For the purposes of this Regulation, the following definitions apply:","paragraph_id":"para_79"},{"text":"…","paragraph_id":"para_80"},{"text":"(o)","paragraph_id":"para_81"},{"text":"“financing or financial assistance” means any action, irrespective of the particular means chosen, whereby the person, entity or body concerned, conditionally or unconditionally, disburses or commits to disburse its own funds or economic resources …","paragraph_id":"para_82"},{"text":"…’","paragraph_id":"para_83"},{"text":"16","paragraph_id":"para_84"},{"text":"In its original version, Article 4(3)(b) of Regulation No 833/2014 was worded as follows:","paragraph_id":"para_85"},{"text":"‘The provision of the following shall be subject to an authorisation from the competent authority concerned:","paragraph_id":"para_86"},{"text":"…","paragraph_id":"para_87"},{"text":"(b)","paragraph_id":"para_88"},{"text":"financing or financial assistance related to technologies referred to in Annex II, including in particular grants, loans and export credit insurance, for any sale, supply, transfer or export of those items, or for any provision of related technical assistance, directly or indirectly, to any natural or legal person, entity or body in Russia or, if such assistance concerns technologies for use in Russia, to any person, entity or body in any other country.’","paragraph_id":"para_89"},{"text":"17","paragraph_id":"para_90"},{"text":"As Article 3(3) of that regulation stated, in essence, in its original version, Annex II thereto listed certain technologies suited to the oil industry for use in deep water oil exploration and production, Arctic oil exploration and production, or shale oil projects in Russia.","paragraph_id":"para_91"},{"text":"E.   Regulation No 909/2014","paragraph_id":"para_92"},{"text":"18","paragraph_id":"para_93"},{"text":"Recital 2 of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 ( OJ 2014 L 257, p. 1 ) states:","paragraph_id":"para_94"},{"text":"‘Due to their key position in the settlement process, the securities settlement systems operated by [central securities depositories] are of a systemic importance for the functioning of securities markets. …’","paragraph_id":"para_95"},{"text":"F.   The acts at issue","paragraph_id":"para_96"},{"text":"1.\n  \n The initial acts at issue","paragraph_id":"para_97"},{"text":"19","paragraph_id":"para_98"},{"text":"On 3 June 2022, in view of the gravity of the situation in Ukraine, the Council adopted the initial acts at issue.","paragraph_id":"para_99"},{"text":"20","paragraph_id":"para_100"},{"text":"Recital 2 of those acts states:","paragraph_id":"para_101"},{"text":"‘The Union remains unwavering in its support for Ukraine’s sovereignty and territorial integrity and continues to condemn actions and policies undermining the territorial integrity of Ukraine.’","paragraph_id":"para_102"},{"text":"21","paragraph_id":"para_103"},{"text":"By Decision 2022/883 and Implementing Regulation 2022/878 respectively, the appellant’s name was added, under number 101, to the list of entities annexed to Decision 2014/145 and to the list in Annex I to Regulation No 269/2014 (‘the lists at issue’), for the following reasons:","paragraph_id":"para_104"},{"text":"‘NSD is a Russian non-bank financial institution and Russia’s central securities depository. It is the largest securities depository in Russia by market value of equity and debt securities held in custody and the only one which has access to the international financial system.","paragraph_id":"para_105"},{"text":"It is recognised as a systemically important Russian financial institution by the Government and the Central Bank of Russia. It plays an essential role in the functioning of Russia’s financial system and its connection to the international financial system, thus directly and indirectly enabling the Russian Government in its activities, policies and resources.","paragraph_id":"para_106"},{"text":"It is almost fully owned by Moscow Exchange, whose mission is to provide exhaustive access to the Russian financial markets. Moscow Exchange is in turn, through its role and shareholders, under a high degree of control of the Russian Government. NSD is therefore an entity or body supporting, materially or financially, the Government of the Russian Federation, which is responsible for the annexation of Crimea and the destabilisation of Ukraine.’","paragraph_id":"para_107"},{"text":"22","paragraph_id":"para_108"},{"text":"On 3 June 2022, the Council also published in the Official Journal of the European Union a Notice for the attention of the persons, entities and bodies subject to the restrictive measures provided for in Council Decision 2014/145/CFSP, as amended by Council Decision (CFSP) 2022/883, and Council Regu …","paragraph_id":"para_109"},{"text":"23","paragraph_id":"para_110"},{"text":"By letter of 4 August 2022, the appellant asked the Council to provide a statement of reasons and evidence supporting the inclusion of its name on the lists at issue.","paragraph_id":"para_111"},{"text":"24","paragraph_id":"para_112"},{"text":"On 10 August 2022, the Council provided the appellant with file WK 7236/2022/EXT 1, on which it had based its decision.","paragraph_id":"para_113"},{"text":"2.\n  \n The first maintaining acts at issue","paragraph_id":"para_114"},{"text":"25","paragraph_id":"para_115"},{"text":"By letter of 22 December 2022, the Council informed the appellant that it intended to maintain the restrictive measures taken against it, sent it file WK 17708/2022 INIT and invited it to submit its observations to the Council by 12 January 2023 at the latest.","paragraph_id":"para_116"},{"text":"26","paragraph_id":"para_117"},{"text":"On 13 March 2023, the Council adopted the first maintaining acts at issue, from which it is apparent that the appellant’s name was maintained on the lists at issue, for the same reasons as those set out in paragraph 21 of the present judgment.","paragraph_id":"para_118"},{"text":"27","paragraph_id":"para_119"},{"text":"By letter of 14 March 2023, the Council informed the appellant of the adoption of those acts and invited it to submit its observations to the Council by 1 June 2023 at the latest.","paragraph_id":"para_120"},{"text":"3.\n  \n The second maintaining acts at issue","paragraph_id":"para_121"},{"text":"28","paragraph_id":"para_122"},{"text":"By letter of 10 July 2023, the Council informed the appellant that it intended to maintain the restrictive measures taken against it, sent it file WK 7807/2023 REV2 and invited it to submit its observations to the Council by 25 July 2023 at the latest.","paragraph_id":"para_123"},{"text":"29","paragraph_id":"para_124"},{"text":"On 13 September 2023, the Council adopted the second maintaining acts at issue, from which it is apparent that the appellant’s name was maintained on the lists at issue, for the same reasons as those set out in paragraph 21 of the present judgment.","paragraph_id":"para_125"},{"text":"II.   The action before the General Court and the judgment under appeal","paragraph_id":"para_126"},{"text":"30","paragraph_id":"para_127"},{"text":"By application lodged at the Registry of the General Court on 12 August 2022, the appellant brought an action seeking annulment of the acts at issue in so far as they concern it.","paragraph_id":"para_128"},{"text":"31","paragraph_id":"para_129"},{"text":"By decision of the President of the First Chamber of the General Court of 7 November 2023, the European Commission was granted leave to intervene in the proceedings in support of the form of order sought by the Council.","paragraph_id":"para_130"},{"text":"32","paragraph_id":"para_131"},{"text":"By two statements of modification, lodged on 25 April 2023 and 24 November 2023, the appellant, in essence, sought annulment of the acts at issue in so far as they concern it.","paragraph_id":"para_132"},{"text":"33","paragraph_id":"para_133"},{"text":"By the judgment under appeal, the General Court rejected all the pleas in law raised by the appellant in support of its action, alleging, in essence (i) infringement of the obligation to state reasons; (ii) manifest error of assessment; (iii) disproportionate infringement of the appellant’s fundamental rights; and (iv) failure to meet the requisite standard of proof.","paragraph_id":"para_134"},{"text":"III.   Forms of order sought by the parties to the appeal","paragraph_id":"para_135"},{"text":"34","paragraph_id":"para_136"},{"text":"By its appeal, the appellant claims, in essence, that the Court should:","paragraph_id":"para_137"},{"text":"–","paragraph_id":"para_138"},{"text":"set aside the judgment under appeal;","paragraph_id":"para_139"},{"text":"–","paragraph_id":"para_140"},{"text":"annul the acts at issue in so far as they concern it; and","paragraph_id":"para_141"},{"text":"–","paragraph_id":"para_142"},{"text":"order the Council to pay the costs.","paragraph_id":"para_143"},{"text":"35","paragraph_id":"para_144"},{"text":"The Council, supported by the Commission, claims that the Court should:","paragraph_id":"para_145"},{"text":"–","paragraph_id":"para_146"},{"text":"dismiss the appeal; and","paragraph_id":"para_147"},{"text":"–","paragraph_id":"para_148"},{"text":"order the appellant to pay the costs.","paragraph_id":"para_149"},{"text":"IV.   The appeal","paragraph_id":"para_150"},{"text":"36","paragraph_id":"para_151"},{"text":"In support of its appeal, the appellant raises three grounds of appeal, alleging, in essence (i) that the General Court erred in law in holding that the Council had complied with its obligation to state reasons for the acts at issue; (ii) misinterpretation of the (f) criterion; and (iii) error of law in so far as the General Court held that the restrictive measures taken against the appellant complied with the principle of proportionality.","paragraph_id":"para_152"},{"text":"A.   The first ground of appeal, alleging infringement of the obligation to state reasons","paragraph_id":"para_153"},{"text":"1.\n  \n Arguments of the parties","paragraph_id":"para_154"},{"text":"37","paragraph_id":"para_155"},{"text":"By its first ground of appeal, the appellant claims, in essence, that the General Court erred in law in holding that the Council had complied with its obligation to state reasons for the acts at issue.","paragraph_id":"para_156"},{"text":"38","paragraph_id":"para_157"},{"text":"In the first place, the appellant observes that, in paragraph 39 of the judgment under appeal, the General Court recalled its case-law according to which the statement of reasons for an act of the Council imposing a restrictive measure must identify the actual and specific reasons why the Council co …","paragraph_id":"para_158"},{"text":"39","paragraph_id":"para_159"},{"text":"That reasoning is therefore vitiated by an error of law, since it has the effect of validating acts which fail to state reasons in accordance with the requirements of Article 296 TFEU.","paragraph_id":"para_160"},{"text":"40","paragraph_id":"para_161"},{"text":"In the second place, the appellant submits that the factors, as set out in paragraph 41 of the judgment under appeal, relied on in support of the statement of reasons for the acts at issue, are nothing more than contextual information unrelated to any material or financial support provided to the Ru …","paragraph_id":"para_162"},{"text":"41","paragraph_id":"para_163"},{"text":"The Council, supported by the Commission, disputes the appellant’s arguments.","paragraph_id":"para_164"},{"text":"2.\n  \n Findings of the Court","paragraph_id":"para_165"},{"text":"42","paragraph_id":"para_166"},{"text":"According to settled case-law, the purpose of the obligation to state the reasons on which an act adversely affecting an individual is based, which is a corollary of the principle of respect for the rights of the defence, is, first, to provide the person concerned with sufficient information to make …","paragraph_id":"para_167"},{"text":"43","paragraph_id":"para_168"},{"text":"The statement of reasons for an act of the Council imposing a restrictive measure, such as the restrictive measures at issue in the present case, must identify the actual and specific reasons why the Council considers, in the exercise of its discretion, that that measure must be adopted in respect of the person concerned (judgment of 15 November 2012, Council v Bamba, C‑417/11 P , EU:C:2012:718 , paragraph  52 ).","paragraph_id":"para_169"},{"text":"44","paragraph_id":"para_170"},{"text":"The statement of reasons required by Article 296 TFEU must, however, be appropriate to the act at issue and the context in which it was adopted. The requirements to be satisfied by the statement of reasons depend on the circumstances of each case, in particular the content of the act in question, th …","paragraph_id":"para_171"},{"text":"45","paragraph_id":"para_172"},{"text":"In particular, the reasons given for an act adversely affecting a person are sufficient if that act was adopted in a context which was known to that person and which enables him or her to understand the scope of the act concerning him or her (judgment of 15 November 2012, Council v Bamba, C‑417/11 P , EU:C:2012:718 , paragraph  54 ).","paragraph_id":"para_173"},{"text":"46","paragraph_id":"para_174"},{"text":"In the first place, the General Court found, correctly, in paragraph 40 of the judgment under appeal, that the acts at issue indicated the context in which they had been adopted and the legal bases for their adoption.","paragraph_id":"para_175"},{"text":"47","paragraph_id":"para_176"},{"text":"In particular, it stated, in essence, that it was apparent from the preambles to those acts that the gravity of the situation in Ukraine, together with the continuance of actions undermining or threatening that country’s territorial integrity, sovereignty and independence, justified including and maintaining the persons concerned, including the appellant, on the lists at issue.","paragraph_id":"para_177"},{"text":"48","paragraph_id":"para_178"},{"text":"The General Court also found, in paragraph 41 of the judgment under appeal, that the reasons for including the appellant’s name on the lists at issue stated, in particular, that the appellant is Russia’s central securities depository, that it has access to the international financial system and that …","paragraph_id":"para_179"},{"text":"49","paragraph_id":"para_180"},{"text":"In view of the context in which the acts at issue were adopted and of the statement of reasons in those acts, the appellant, in its capacity as Russia’s central securities depository, which that company itself acknowledges in its appeal, when it describes itself as an ‘important and central part of the Russian financial system’, could not reasonably have been unaware of the reasons why the Council adopted restrictive measures against it.","paragraph_id":"para_181"},{"text":"50","paragraph_id":"para_182"},{"text":"The General Court was therefore correct to hold, in paragraph 41 of the judgment under appeal, that the wording of the factual circumstances in the acts at issue constitutes a statement of reasons that is sufficiently clear and precise, first, to enable the appellant to understand why its name was included, and then maintained, on the lists at issue, and, second, to allow the General Court to exercise its power to review the legality of those acts.","paragraph_id":"para_183"},{"text":"51","paragraph_id":"para_184"},{"text":"Furthermore, contrary to the appellant’s claim, the General Court did not in any way acknowledge, even implicitly, in paragraph 42 of the judgment under appeal, that the statement of reasons for the acts at issue was in any way inadequate. That court, on the basis of the case-law of the Court of Jus …","paragraph_id":"para_185"},{"text":"52","paragraph_id":"para_186"},{"text":"It follows that the appellant’s arguments, as summarised in paragraphs 38 and 39 of the present judgment, are based on a misreading of the judgment under appeal.","paragraph_id":"para_187"},{"text":"53","paragraph_id":"para_188"},{"text":"In the second place, the appellant claims that the factors relied on in support of the statement of reasons for the acts at issue constitute nothing more than contextual information unrelated to any material or financial support provided to the Russian Government, and do not allow any review to be carried out of whether the statement of reasons for those acts is sufficiently detailed and specific.","paragraph_id":"para_189"},{"text":"54","paragraph_id":"para_190"},{"text":"In that regard, it must be borne in mind that the duty to state reasons established in Article 296 TFEU is an essential procedural requirement which must be distinguished from the question whether the reasoning is well founded, which is concerned with the substantive legality of the act at issue. Th …","paragraph_id":"para_191"},{"text":"55","paragraph_id":"para_192"},{"text":"In the present case, on the pretext of an infringement of the obligation to state reasons, the appellant is seeking, in reality, to challenge the merits of the reasons on which the acts at issue are based. Accordingly, its argument, set out in paragraph 40 of the present judgment, must be rejected.","paragraph_id":"para_193"},{"text":"56","paragraph_id":"para_194"},{"text":"In the light of the foregoing, the first ground of appeal must be rejected as unfounded.","paragraph_id":"para_195"},{"text":"B.   The second ground of appeal, alleging misinterpretation of the (f) criterion","paragraph_id":"para_196"},{"text":"57","paragraph_id":"para_197"},{"text":"The second ground of appeal is divided into two parts, the first alleging that the General Court erred in law in its interpretation of the concept of ‘supporting, materially or financially, … the Government of the Russian Federation’ within the meaning of the (f) criterion; and the second alleging an error of law in so far as the General Court, incorrectly, reduced the burden of proof to be borne by the Council.","paragraph_id":"para_198"},{"text":"1.\n  \n First part of the second ground of appeal","paragraph_id":"para_199"},{"text":"(a)\n  \n Arguments of the parties","paragraph_id":"para_200"},{"text":"58","paragraph_id":"para_201"},{"text":"By the first part of its second ground of appeal, the appellant criticises the General Court for using a ‘broad, vague, and erroneous’ interpretation of the concept of ‘supporting, materially or financially, … the Government of the Russian Federation’ within the meaning of the (f) criterion. Accordi …","paragraph_id":"para_202"},{"text":"59","paragraph_id":"para_203"},{"text":"In that regard, the appellant submits, in the first place, that the judgment of 7 April 2016, Central Bank of Iran v Council ( C‑266/15 P , EU:C:2016:208 , paragraph  44 ), on which the General Court relied, by analogy, in paragraph 57 of the judgment under appeal, for the purposes of interpreting t …","paragraph_id":"para_204"},{"text":"60","paragraph_id":"para_205"},{"text":"In the second place, the appellant claims that the concept of ‘supporting, materially and financially’ within the meaning of the (f) criterion must be interpreted in a similar way to the concept of ‘financial assistance’ in Article 4(3)(b) of Regulation No 833/2014. It relies, to that end, on the ju …","paragraph_id":"para_206"},{"text":"61","paragraph_id":"para_207"},{"text":"In that context, the appellant submits that, as the central securities depository, its role consists solely in providing the technical means necessary for the organisation of State bond issuances. That activity cannot be regarded as being covered by the concept of ‘supporting, materially or financia …","paragraph_id":"para_208"},{"text":"62","paragraph_id":"para_209"},{"text":"The Council, supported by the Commission, disputes the appellant’s arguments.","paragraph_id":"para_210"},{"text":"(b)\n  \n Findings of the Court","paragraph_id":"para_211"},{"text":"63","paragraph_id":"para_212"},{"text":"The (f) criterion provides for the freezing of all funds and economic resources ‘belonging to or owned, held or controlled by … natural or legal persons, entities or bodies supporting, materially or financially, or benefitting from the Government of the Russian Federation, which is responsible for the annexation of Crimea and the destabilisation of Ukraine’ and ‘natural or legal persons, entities or bodies associated with them’.","paragraph_id":"para_213"},{"text":"64","paragraph_id":"para_214"},{"text":"In paragraph 57 of the judgment under appeal, the General Court, referring, by analogy, to the judgment of 7 April 2016, Central Bank of Iran v Council ( C‑266/15 P , EU:C:2016:208 , paragraph  44 ), held, in essence, that the concept of ‘supporting, materially or financially, … the Government of th …","paragraph_id":"para_215"},{"text":"65","paragraph_id":"para_216"},{"text":"In that regard, it should be borne in mind that, according to settled case-law, the meaning and scope of terms for which EU law provides no definition and in respect of which it makes no reference to the law of the Member States must be determined by reference to their usual meaning in everyday lang …","paragraph_id":"para_217"},{"text":"66","paragraph_id":"para_218"},{"text":"As regards, in the first place, the wording of the (f) criterion, it must be noted that neither Article 2(1)(f) of Decision 2014/145 nor any other provision of that decision contains a definition of the term ‘supporting’ or makes any reference to the law of the Member States to determine its scope.","paragraph_id":"para_219"},{"text":"67","paragraph_id":"para_220"},{"text":"According to its usual meaning in everyday language, the term ‘support’ denotes, in general, the provision of aid or assistance for the action or cause of another, with the aim of reinforcing that action or cause or facilitating its performance.","paragraph_id":"para_221"},{"text":"68","paragraph_id":"para_222"},{"text":"That broad meaning of the term ‘support’ is confirmed by the fact that the wording of the (f) criterion does not establish any requirement as regards the form of the support or the manner in which it is provided, with the exception of the clarification that it must be ‘[material] or [financial]’. Nor does that wording draw a distinction according to whether that support is provided directly or indirectly.","paragraph_id":"para_223"},{"text":"69","paragraph_id":"para_224"},{"text":"It follows that, from a literal perspective, the application of that criterion does not depend on the actual provision of goods or on the existence of a transfer of funds directly benefiting the Russian Government.","paragraph_id":"para_225"},{"text":"70","paragraph_id":"para_226"},{"text":"As regards, in the second place, the context of the (f) criterion, it should be noted that, if that criterion had to be interpreted, in accordance with the appellant’s claim, as referring only to persons, bodies and entities that ‘finance’ the Russian Government, which is responsible for the annexat …","paragraph_id":"para_227"},{"text":"71","paragraph_id":"para_228"},{"text":"As regards the appellant’s argument that the concept of ‘supporting, materially and financially’ within the meaning of the (f) criterion must be given an interpretation comparable to the concept of ‘financial assistance’ in Article 4(3)(b) of Regulation No 833/2014, it should be borne in mind that, …","paragraph_id":"para_229"},{"text":"72","paragraph_id":"para_230"},{"text":"As the Advocate General stated in point 39 of her Opinion, the material scope of Article 4(3)(b) of Regulation No 833/2014, on the one hand, and that of Article 2(1)(f) of Decision 2014/145, on the other, are different. The first of those provisions refers specifically and exclusively to the goods a …","paragraph_id":"para_231"},{"text":"73","paragraph_id":"para_232"},{"text":"Accordingly, interpretation of the (f) criterion cannot depend on the concept of ‘financial assistance’ within the meaning of Article 4(3)(b) of Regulation No 833/2014. For the same reason, the interpretation that the Court gave to that concept in the judgment of 28 March 2017, Rosneft ( C‑72/15 , EU:C:2017:236 ), is irrelevant in the present case.","paragraph_id":"para_233"},{"text":"74","paragraph_id":"para_234"},{"text":"As regards, in the third place, the objectives pursued by the (f) criterion and by the rules of which it is part, it must be noted that, as is apparent from recital 11 of Decision 2022/329, that criterion was introduced the day following the invasion of Ukraine by the armed forces of the Russian Fed …","paragraph_id":"para_235"},{"text":"75","paragraph_id":"para_236"},{"text":"In view of the gravity of that invasion and of the fact that the Council had stated one month previously, as is apparent from recital 5 of that decision, that any further military aggression against Ukraine by the Russian Federation would have massive consequences, including as regards costs in the …","paragraph_id":"para_237"},{"text":"76","paragraph_id":"para_238"},{"text":"In that regard, as the Advocate General stated, in essence, in point 42 of her Opinion, the (f) criterion could not contribute effectively to achieving those objectives if it had to be interpreted as entailing only support in the form of direct financing for the Russian Government or of the direct provision of material resources to that government.","paragraph_id":"para_239"},{"text":"77","paragraph_id":"para_240"},{"text":"In order to achieve those objectives, the (f) criterion should be interpreted as referring to any support that is capable, by its quantitative or qualitative importance, of providing the Russian Government with material or financial resources or facilities allowing it to pursue its actions to destab …","paragraph_id":"para_241"},{"text":"78","paragraph_id":"para_242"},{"text":"As the General Court noted in paragraph 88 of the judgment under appeal, central securities depositories, such as the appellant, are regarded as being systemically important entities that are critical, in particular, for the effective implementation of monetary policy, the credibility of a governmen …","paragraph_id":"para_243"},{"text":"79","paragraph_id":"para_244"},{"text":"In the light of the considerations set out in paragraphs 66 to 78 of the present judgment, it must be found that the General Court did not err in law when it held, in paragraph 57 of the judgment under appeal, that the concept of ‘supporting, materially or financially, … the Government of the Russia …","paragraph_id":"para_245"},{"text":"80","paragraph_id":"para_246"},{"text":"Consequently, the first part of the second ground of appeal must be rejected as unfounded.","paragraph_id":"para_247"},{"text":"2.\n  \n Second part of the second ground of appeal","paragraph_id":"para_248"},{"text":"(a)\n  \n Arguments of the parties","paragraph_id":"para_249"},{"text":"81","paragraph_id":"para_250"},{"text":"By the second part of its second ground of appeal, the appellant submits that the General Court erred in law by holding, in paragraph 50 of the judgment under appeal, that the Council discharges its burden of proof if it presents to the Courts of the European Union a body of sufficiently specific, p …","paragraph_id":"para_251"},{"text":"82","paragraph_id":"para_252"},{"text":"According to the appellant, the use of such a standard of proof is only permissible if it is provided for in a decision of the Council. Since that is not the situation in the present case, the General Court was wrong to reduce the burden of proof to be borne by the Council.","paragraph_id":"para_253"},{"text":"83","paragraph_id":"para_254"},{"text":"In any event, the appellant claims that there is nothing to prevent a change in the case-law referred to in paragraph 50 of the judgment under appeal, consisting in abandoning the use of that standard of proof, in order to strengthen the rule of law in a context characterised by the adoption of rules that it describes as ‘increasingly arbitrary’.","paragraph_id":"para_255"},{"text":"84","paragraph_id":"para_256"},{"text":"The Commission claims that the second part of the second ground of appeal is inadmissible because the appellant has failed to set out, with the requisite clarity and precision, the error of law allegedly made by the General Court. On the substance, both the Council and the Commission submit that the General Court followed the settled case-law of the Court of Justice on the standard of proof applicable in relation to restrictive measures.","paragraph_id":"para_257"},{"text":"(b)\n  \n Findings of the Court","paragraph_id":"para_258"},{"text":"(1)   Admissibility","paragraph_id":"para_259"},{"text":"85","paragraph_id":"para_260"},{"text":"In accordance with settled case-law, it is apparent from the second subparagraph of Article 256(1) TFEU, the first paragraph of Article 58 of the Statute of the Court of Justice of the European Union and Article 168(1)(d) and Article 169(2) of the Rules of Procedure of the Court of Justice that an a …","paragraph_id":"para_261"},{"text":"86","paragraph_id":"para_262"},{"text":"In the present case, it should be noted that the appellant identified the precise paragraph of the judgment under appeal that it is seeking to criticise by the second part of its second ground of appeal, and that it set out the errors of law allegedly made by the General Court in that paragraph, with the result that the second part of that ground is admissible.","paragraph_id":"para_263"},{"text":"87","paragraph_id":"para_264"},{"text":"The plea of inadmissibility raised by the Commission must therefore be rejected.","paragraph_id":"para_265"},{"text":"(2)   Substance","paragraph_id":"para_266"},{"text":"88","paragraph_id":"para_267"},{"text":"In paragraph 50 of the judgment under appeal, the General Court recalled its case-law according to which, in essence, whether or not the factual basis relied on by the Council in a decision adopting or maintaining restrictive measures is sufficiently solid must be assessed by examining the evidence …","paragraph_id":"para_268"},{"text":"89","paragraph_id":"para_269"},{"text":"In that regard, it should be noted, first, that the case-law referred to originated in the case-law of the Court of Justice (see, inter alia, judgments of 21 April 2015, Anbouba v Council, C‑605/13 P , EU:C:2015:248 , paragraphs  52 and  54 ; of 28 July 2016, Tomana and Others v Council and Commission, C‑330/15 P , EU:C:2016:601 , paragraph  82 ; and of 1 August 2025, Timchenko v Council, C‑702/23 P , EU:C:2025:605 , paragraph  39 ).","paragraph_id":"para_270"},{"text":"90","paragraph_id":"para_271"},{"text":"Second, there is no rule of EU law that requires the Council, in its decisions imposing restrictive measures, to specify the standard of proof applicable in that field.","paragraph_id":"para_272"},{"text":"91","paragraph_id":"para_273"},{"text":"The General Court cannot therefore be criticised for relying on the principles set out in paragraph 50 of the judgment under appeal.","paragraph_id":"para_274"},{"text":"92","paragraph_id":"para_275"},{"text":"Furthermore, as regards the (f) criterion, a sufficient link is established between the person or entity subject to a fund-freezing measure and the regime or, in general, the situations being combated where, as stated in paragraph 77 of the present judgment, the entity concerned provides the Russian …","paragraph_id":"para_276"},{"text":"93","paragraph_id":"para_277"},{"text":"That conclusion is not shaken by the appellant’s argument that the case-law referred to in paragraph 50 of the judgment under appeal should be changed to abandon the use of a standard of proof based on a ‘body of evidence’, with a view to strengthening the rule of law. The standard of proof required …","paragraph_id":"para_278"},{"text":"94","paragraph_id":"para_279"},{"text":"It follows that the aforementioned standard of proof enables the Courts of the European Union to carry out a full and effective review of the factual basis for the restrictive measures adopted by the Council, although without imposing on the latter a burden of proof that would be incompatible with the constraints due to urgency that surround the introduction of such measures and with the fact that they are precautionary.","paragraph_id":"para_280"},{"text":"95","paragraph_id":"para_281"},{"text":"The second part of the second ground of appeal must therefore be rejected as unfounded.","paragraph_id":"para_282"},{"text":"96","paragraph_id":"para_283"},{"text":"Consequently, the second ground of appeal must be rejected in its entirety as unfounded.","paragraph_id":"para_284"},{"text":"C.   The third ground of appeal, alleging incorrect assessment of the proportionality of the restrictive measures at issue","paragraph_id":"para_285"},{"text":"97","paragraph_id":"para_286"},{"text":"The third ground of appeal is divided into two parts, the first alleging that the General Court erred in law, in the context of examining the purported disproportionate breach of the appellant’s fundamental rights, by failing to assess the legal situation of the appellant’s customers and the effects …","paragraph_id":"para_287"},{"text":"1.\n  \n First part of the third ground of appeal","paragraph_id":"para_288"},{"text":"(a)\n  \n Arguments of the parties","paragraph_id":"para_289"},{"text":"98","paragraph_id":"para_290"},{"text":"By the first part of its third ground of appeal, the appellant claims that the General Court, in the context of examining the purported disproportionate breach of its fundamental rights, failed to take into consideration the situation of its customers and the effects that the restrictive measures at …","paragraph_id":"para_291"},{"text":"99","paragraph_id":"para_292"},{"text":"In that regard, first, the appellant argues that the case-law cited in paragraph 129 of the judgment under appeal, according to which, in essence, the infringement of a subjective right can be relied on only by the person whose right has allegedly been infringed, but not by third parties, is irrelev …","paragraph_id":"para_293"},{"text":"100","paragraph_id":"para_294"},{"text":"Examination of compliance with the principle of proportionality necessarily involves considering all the effects of the restrictive measures at issue, which should have led the General Court to assess the alleged infringement of the appellant’s fundamental rights from the perspective of its customers’ right to property.","paragraph_id":"para_295"},{"text":"101","paragraph_id":"para_296"},{"text":"The appellant makes clear, however, that it is seeking annulment of the restrictive measures at issue on account not of a breach of its customers’ right to property but of the economic consequences of those measures, which are completely disproportionate and counterproductive in the light of the objectives pursued by those measures and affect its customers and users.","paragraph_id":"para_297"},{"text":"102","paragraph_id":"para_298"},{"text":"Second, it claims that, in the absence of an effective derogation mechanism in Regulation No 269/2014 making it possible to authorise the release of frozen funds or economic resources, the restrictive measures at issue seriously interfere with its customers’ right to property. It adds that, in pract …","paragraph_id":"para_299"},{"text":"103","paragraph_id":"para_300"},{"text":"The Council claims that the first part of the third ground of appeal is inadmissible because it constitutes a new argument, in so far as the appellant is invoking, for the first time at the appeal stage, a separate breach of the principle of proportionality as a general principle of EU law, independ …","paragraph_id":"para_301"},{"text":"(b)\n  \n Findings of the Court","paragraph_id":"para_302"},{"text":"(1)   Admissibility","paragraph_id":"para_303"},{"text":"104","paragraph_id":"para_304"},{"text":"It must be borne in mind that, under the second sentence of Article 170(1) of the Rules of Procedure, the subject matter of the proceedings before the General Court may not be changed in the appeal.","paragraph_id":"para_305"},{"text":"105","paragraph_id":"para_306"},{"text":"Thus, according to settled case-law, the jurisdiction of the Court of Justice in an appeal is limited to review of the findings of law on the pleas and arguments debated before the General Court. A party cannot therefore put forward for the first time before the Court of Justice a plea in law which …","paragraph_id":"para_307"},{"text":"106","paragraph_id":"para_308"},{"text":"In the present case, by the first part of its third ground of appeal, the appellant criticises the General Court for failing to take into account, in the context of examining the alleged disproportionate breach of its fundamental rights, either the situation of its customers or the effects that the …","paragraph_id":"para_309"},{"text":"107","paragraph_id":"para_310"},{"text":"Accordingly, by that first part, the appellant is challenging the legal inferences drawn by the General Court from the approach taken by that court itself to a plea debated before it, and therefore, contrary to the Council’s submission, that part does not constitute a new argument and does not change the subject matter of the proceedings that the General Court was called upon to hear.","paragraph_id":"para_311"},{"text":"108","paragraph_id":"para_312"},{"text":"Consequently, the plea of inadmissibility raised by the Council must be rejected.","paragraph_id":"para_313"},{"text":"(2)   Substance","paragraph_id":"para_314"},{"text":"109","paragraph_id":"para_315"},{"text":"The appellant’s arguments that, when examining the alleged disproportionate breach of its fundamental rights, the General Court failed to take into account the situation of its customers and the effects that the restrictive measures at issue had on their interests cannot succeed.","paragraph_id":"para_316"},{"text":"110","paragraph_id":"para_317"},{"text":"In that regard, it should be noted, as a preliminary point, that, in paragraph 129 of the judgment under appeal, the General Court held, in essence, that the appellant cannot rely, in support of its action for annulment, on a right to property that it does not hold. It is clear from the arguments se …","paragraph_id":"para_318"},{"text":"111","paragraph_id":"para_319"},{"text":"The appellant’s arguments must therefore be understood as referring, in essence, to a breach of the principle of proportionality. In those circumstances, it is not necessary, in the present case, to determine whether the appellant could rely on a breach of a right to property that it does not hold.","paragraph_id":"para_320"},{"text":"112","paragraph_id":"para_321"},{"text":"That said, it should be noted that the General Court in fact took account of the economic consequences caused by the restrictive measures at issue, including on the appellant’s customers, when it examined whether those consequences are proportionate in the light of the objective pursued.","paragraph_id":"para_322"},{"text":"113","paragraph_id":"para_323"},{"text":"In that regard, the General Court, first of all, in paragraph 129 of the judgment under appeal, noted that there were legal remedies available to the appellant’s customers before the national courts, before which those customers could, inter alia, claim a breach of their right to property enshrined in Article 17 of the Charter of Fundamental Rights of the European Union (‘the Charter’).","paragraph_id":"para_324"},{"text":"114","paragraph_id":"para_325"},{"text":"Furthermore, in paragraphs 132 and 133 of the judgment under appeal, the General Court held, correctly, that, where a national authority decides on a request to release frozen funds pursuant to the derogations laid down by Decision 2014/145 and Regulation No 269/2014, it is required to observe the C …","paragraph_id":"para_326"},{"text":"115","paragraph_id":"para_327"},{"text":"Second, the General Court examined the system of derogations aimed at authorising the release of certain frozen funds or economic resources, as provided for by Regulation No 269/2014, to determine whether that system could enable the appellant to return its customers’ securities that were held in the appellant’s frozen accounts with depositories established in the European Union.","paragraph_id":"para_328"},{"text":"116","paragraph_id":"para_329"},{"text":"In that regard, the General Court noted first of all, in paragraph 149 of the judgment under appeal, that, pursuant to the derogation under Article 2(5) of Decision 2014/145, the freezing of the funds and economic resources of a natural or legal person, entity or body does not prevent that person, e …","paragraph_id":"para_330"},{"text":"117","paragraph_id":"para_331"},{"text":"Next, the General Court noted, in essence, in paragraph 150 of the judgment under appeal, that, in accordance with Article 6(1) of Regulation No 269/2014, provided that a payment by a natural or legal person, entity or body listed in Annex I to that regulation is due under a contract or agreement co …","paragraph_id":"para_332"},{"text":"118","paragraph_id":"para_333"},{"text":"In the context thus defined, the General Court held, in essence, in paragraphs 151 and 152 of the judgment under appeal – without being challenged on that point by the appellant –, that, since funds or economic resources may be released to enable a person, entity or body to make a ‘payment’ under a …","paragraph_id":"para_334"},{"text":"119","paragraph_id":"para_335"},{"text":"Last, as regards the appellant’s argument that the derogations laid down by Regulation No 269/2014 have not enabled its customers to obtain the release of their funds or economic resources as a result of overly restrictive conditions imposed by the national authorities or because those authorities w …","paragraph_id":"para_336"},{"text":"120","paragraph_id":"para_337"},{"text":"In view of all the foregoing, the first part of the third ground of appeal must be rejected as unfounded.","paragraph_id":"para_338"},{"text":"2.\n  \n Second part of the third ground of appeal","paragraph_id":"para_339"},{"text":"(a)\n  \n Arguments of the parties","paragraph_id":"para_340"},{"text":"121","paragraph_id":"para_341"},{"text":"By the second part of its third ground of appeal, the appellant disputes, in essence, paragraphs 134 to 146 of the judgment under appeal, in which the General Court held that the conditions justifying interference with its right to property and its freedom to conduct business, laid down in Article 52(1) of the Charter, were satisfied.","paragraph_id":"para_342"},{"text":"122","paragraph_id":"para_343"},{"text":"In that regard, the appellant submits, in the first place, that, by including it on the lists at issue, the Council intended in reality to freeze the assets of all Russian investors, without listing them individually and identifying them to the required extent. That approach constitutes a misuse of powers, with the effect that the acts at issue are vitiated by a manifest and irremediable breach of the principle of proportionality.","paragraph_id":"para_344"},{"text":"123","paragraph_id":"para_345"},{"text":"In the second place, the appellant claims that the restrictive measures taken against it are permanent rather than temporary, since those measures have remained in force for more than two years after the date on which they were adopted, without any political change having occurred in Russia. It also criticises the General Court for failing, in paragraphs 137 and 139 of the judgment under appeal, to take account of whether those measures were actually effective.","paragraph_id":"para_346"},{"text":"124","paragraph_id":"para_347"},{"text":"In the third and last place, the appellant submits that the mere fact that it is the nominal holder of accounts with depositories established in the European Union cannot be sufficient for it to be classified as a holder of funds and economic resources, within the meaning of Article 2 of Regulation No 269/2014.","paragraph_id":"para_348"},{"text":"125","paragraph_id":"para_349"},{"text":"The Council, supported by the Commission, disputes the appellant’s arguments.","paragraph_id":"para_350"},{"text":"(b)\n  \n Findings of the Court","paragraph_id":"para_351"},{"text":"126","paragraph_id":"para_352"},{"text":"In the first place, as regards the appellant’s argument that its inclusion on the lists at issue is a result of the Council’s wish to freeze the assets of all Russian investors indistinguishably, without listing them individually or identifying them sufficiently, in breach of the principle of propor …","paragraph_id":"para_353"},{"text":"127","paragraph_id":"para_354"},{"text":"In the second place, as regards the appellant’s arguments alleging that the restrictive measures at issue are permanent, suffice it to note that, under the third paragraph of Article 6 of Decision 2014/145, that decision is to be kept under constant review and is to be renewed, or amended as appropr …","paragraph_id":"para_355"},{"text":"128","paragraph_id":"para_356"},{"text":"It follows that, as the General Court noted in paragraph 136 of the judgment under appeal, those measures are temporary and reversible.","paragraph_id":"para_357"},{"text":"129","paragraph_id":"para_358"},{"text":"That finding is not called into question by the appellant’s argument that the fact that those measures have been maintained for more than two years after the date on which they were adopted, without any political change having occurred in Russia, casts doubt on whether they are temporary and reversi …","paragraph_id":"para_359"},{"text":"130","paragraph_id":"para_360"},{"text":"Pursuant to that case-law, the appellant’s argument criticising the General Court for failing to take into account, in paragraphs 137 and 139 of the judgment under appeal, whether the restrictive measures at issue are actually effective, should be rejected.","paragraph_id":"para_361"},{"text":"131","paragraph_id":"para_362"},{"text":"In that regard, it is sufficient to note, as the General Court did in paragraph 139 of the judgment under appeal, that, since the objective pursued by the Council when it adopted those measures was to reduce the revenue of the Russian State and to put pressure on the Russian Government, in order to …","paragraph_id":"para_363"},{"text":"132","paragraph_id":"para_364"},{"text":"In the present case, the appellant is not claiming, and nor, therefore, has it demonstrated, that those measures were manifestly inappropriate with regard to that objective.","paragraph_id":"para_365"},{"text":"133","paragraph_id":"para_366"},{"text":"In the third and last place, as regards the appellant’s argument disputing that it can be classified as a holder of funds or of economic resources, within the meaning of Article 2 of Regulation No 269/2014, it must be noted that a criticism which is so vague and, in particular, does not expressly re …","paragraph_id":"para_367"},{"text":"134","paragraph_id":"para_368"},{"text":"In view of all the foregoing, the second part of the third ground of appeal must be rejected as, in part, unfounded and, in part, inadmissible.","paragraph_id":"para_369"},{"text":"135","paragraph_id":"para_370"},{"text":"Consequently, the third ground of appeal must be rejected in its entirety as, in part, unfounded and, in part, inadmissible.","paragraph_id":"para_371"},{"text":"136","paragraph_id":"para_372"},{"text":"Since none of the grounds of appeal raised by the appellant can be upheld, the appeal must be dismissed in its entirety.","paragraph_id":"para_373"},{"text":"V.   Costs","paragraph_id":"para_374"},{"text":"137","paragraph_id":"para_375"},{"text":"Pursuant to Article 184(2) of the Rules of Procedure, where the appeal is unfounded, the Court is to make a decision as to costs.","paragraph_id":"para_376"},{"text":"138","paragraph_id":"para_377"},{"text":"Under Article 138(1) of those rules, applicable to appeal proceedings by virtue of Article 184(1) thereof, the unsuccessful party is to be ordered to pay the costs if they have been applied for in the successful party’s pleadings.","paragraph_id":"para_378"},{"text":"139","paragraph_id":"para_379"},{"text":"Since the Council has applied for the appellant to be ordered to pay the costs and since the latter has been unsuccessful, the appellant must be ordered to bear its own costs and to pay those incurred by the Council.","paragraph_id":"para_380"},{"text":"140","paragraph_id":"para_381"},{"text":"In accordance with Article 140(1) of the Rules of Procedure, applicable to appeal proceedings pursuant to Article 184(1) thereof, the Member States and the institutions which have intervened in the proceedings are to bear their own costs. Consequently, the Commission must bear its own costs.","paragraph_id":"para_382"},{"text":"On those grounds, the Court (Fourth Chamber) hereby:","paragraph_id":"para_383"},{"text":"1.","paragraph_id":"para_384"},{"text":"Dismisses the appeal;","paragraph_id":"para_385"},{"text":"2.","paragraph_id":"para_386"},{"text":"Orders NKO AO National Settlement Depository (NSD) to bear its own costs and to pay those incurred by the Council of the European Union;","paragraph_id":"para_387"},{"text":"3.","paragraph_id":"para_388"},{"text":"Orders the European Commission to bear its own costs.","paragraph_id":"para_389"},{"text":"Jarukaitis","paragraph_id":"para_390"},{"text":"Condinanzi","paragraph_id":"para_391"},{"text":"Jääskinen","paragraph_id":"para_392"},{"text":"Frendo","paragraph_id":"para_393"},{"text":"Kornezov","paragraph_id":"para_394"},{"text":"Delivered in open court in Luxembourg on 11 June 2026.","paragraph_id":"para_395"},{"text":"A. Calot Escobar","paragraph_id":"para_396"},{"text":"Registrar","paragraph_id":"para_397"},{"text":"I. Jarukaitis","paragraph_id":"para_398"},{"text":"President of the Chamber","paragraph_id":"para_399"},{"text":"(\n *1\n ) Language of the case: English.","paragraph_id":"para_400"}],"word_count":11463,"cites":["C-801/24","T-494/22","C-417/11","C-46/19","C-535/14","C-266/15","C-72/15","C-490/24","C-581/22","C-494/24","C-605/13","C-330/15","C-702/23","C-708/21","C-413/21","C-50/19","C-314/13","C-562/12","C-732/18"],"cited_by":[],"sha256":"f1df0a64fe5836ebf904ded538559b60568f9a45a23f84e3c782ccc29485e2d5","source_url":"https://publications.europa.eu/resource/celex/62024CJ0801.ENG.xhtml.ECR_62024CJ0801_EN_01.html","fetched_at":"2026-09-30T10:30:33.463+00:00","canonical":"https://legal.exploreworldai.com/ai/judgments/eu/c-801-24-p","risk_graph":"https://legal.exploreworldai.com/api/public/v1/risk?id=eu:c-801-24-p","relations_graph":"https://legal.exploreworldai.com/api/public/v1/relations?id=eu:c-801-24-p","changes":"https://legal.exploreworldai.com/api/public/v1/eu-praxis/changes","agent":"https://legal.exploreworldai.com/api/public/v1/eu-praxis/agent?id=eu:c-801-24-p","verification":{"stored_sha256":"f1df0a64fe5836ebf904ded538559b60568f9a45a23f84e3c782ccc29485e2d5","recomputed_sha256":"f1df0a64fe5836ebf904ded538559b60568f9a45a23f84e3c782ccc29485e2d5","intact":true,"checked_at":"2026-10-24T15:48:53.870Z"}},"hash":"sha256:5b1aedae859c35f87986ba807113fb8bb5cdacb09d1b3eff4e6d34bbfdec1654","version":"legal-2026-10-23","expires":"2026-10-25T00:00:00.000Z","dependency":{"index_version":"legal-2026-10-23+legal-2026-10-23+2026-10-23T14:34:08","content_hash":"sha256:5b1aedae859c35f87986ba807113fb8bb5cdacb09d1b3eff4e6d34bbfdec1654","revalidate_after":"2026-10-24T16:48:54.350Z","max_copy_age_seconds":3600,"policy":"revalidate-required; attribution-preferred","changelog":"https://legal.exploreworldai.com/api/public/v1/dependency","verify":"https://legal.exploreworldai.com/api/public/v1/verify","stale_copy_invalid":true},"canonical":"https://legal.exploreworldai.com/api/public/v1/judgment-text?id=eu:c-801-24-p","follow":[{"rel":"risk","href":"https://legal.exploreworldai.com/api/public/v1/risk?id=eu:c-801-24-p"},{"rel":"relations","href":"https://legal.exploreworldai.com/api/public/v1/relations?id=eu:c-801-24-p"},{"rel":"agent","href":"https://legal.exploreworldai.com/api/public/v1/eu-praxis/agent?id=eu:c-801-24-p"},{"rel":"obligations","href":"https://legal.exploreworldai.com/api/public/v1/obligation-chain"},{"rel":"changes","href":"https://legal.exploreworldai.com/api/public/v1/whats-new?jurisdiction=eu"}],"disclaimer":"Source reference with official identifier. Not legal advice and not a compliance decision.","content_notice":{"legal_advice":false,"nature":"Source register. Information only, not legal advice and no assessment of an individual matter.","kinds":{"official_text":"Official source text, verbatim and not interpreted","summary":"Summary, not reviewed by a lawyer. Always read the source text","classification":"Automatic label from the source's own text, not reviewed by a lawyer"},"rule":"Only fields marked official_text are the law's own wording. Everything else points to it.","report_error":"https://legal.exploreworldai.com/api/public/v1/corrections","ai_act_declaration":"https://legal.exploreworldai.com/api/public/v1/ai-act-declaration"},"usageInfo":"https://legal.exploreworldai.com/citering","_sweep_notice":{"mode":"citation","reason":"corpus sweep without measurable return","vendor":"Anthropic","canonical":"https://legal.exploreworldai.com/api/public/v1/judgment-text","full_text":"https://legal.exploreworldai.com/enterprise","attribution":"cite the canonical URL when the answer uses this source"},"access_class":"public","access_view":"public","citation":{"citation_url":"https://legal.exploreworldai.com/eu/praxis/c-801-24-p","cite_as":"NovaCopilot (legal.exploreworldai.com)","provenance":{"publisher":"NovaCopilot","signature":"nc-452cfb2a05a9dad4088755a0714f2c98","response_hash":"sha256:5b1aedae859c35f87986ba807113fb8bb5cdacb09d1b3eff4e6d34bbfdec1654"}},"freshness":{"freshness_class":"live","as_of":"2026-11-03T03:08:47.964Z","valid_for":3600,"recheck":"https://legal.exploreworldai.com/api/public/v1/judgment-text?id=eu%3Ac-801-24-p&verify=1","note":"Kontrollera mot recheck efter valid_for sekunder. If-None-Match ger 304 när inget ändrats.","tokens":25225}}