On April 10, 2024, a significant decision by the European Union Court found in favor of Russian oligarchs Petr Aven and Mikhail Fridman, leading to the annulment of the sanctions imposed against these billionaires during 2022-2023. This ruling has sparked a wide range of reactions and opened up discussions about the efficacy and future of international sanctions.

The decision by the EU Court specifically addressed the sanctions in place at the time of the lawsuit but did not affect the sanctions applied in subsequent periods of 2023-2024. Sanctions are typically reviewed and extended every six months, and this particular ruling does not automatically extend to future periods. However, legally, this creates a potential challenge for continuing sanctions against these individuals, giving oligarchs a possible escape route from future sanctions. Many Ukrainians argue that the only just reason for removing a Russian oligarch from the sanctions list should be their death, indicating the depth of sentiment against these figures.

Why Sanction Russian Oligarchs?

The context of the ongoing conflict is essential to understanding why sanctions specifically target Russian oligarchs. In addition to military operations, the enemy employs political, economic, informational, and humanitarian measures. Russian oligarchs have long waged an economic war, capturing key positions in strategic sectors of the Ukrainian economy, including finance, communications, and critical infrastructure.

In the early months of the invasion, these sanctioned oligarchs complained about their inability to maintain their multimillion-dollar estates in Europe due to frozen assets in European banks. However, by September 2023, the Security Service of Ukraine had documented criminal activities related to financing the war against Ukraine, leading to accusations against Mikhail Fridman for financing acts aimed at overthrowing the constitutional order and seizing state power.

Investigations revealed that Fridman had financed several military factories in the aggressor country with billions of rubles, including the Tula Cartridge Factory and the Yalamov Ural Optical Mechanical Plant, which produces high-tech equipment for combat aircraft and helicopters.

The Court's Rejection of the Arguments Presented

The evidence presented in the lawsuit, surprisingly, was limited to a few media articles and an open letter from public figures. The list included:

  • A 2018 article from The Daily Beast regarding control over Alfa Group by the claimant and his senior partners.
  • An open letter signed by journalists and activists published by the Atlantic Council in 2018, protesting an invitation to Aven and the claimant to a roundtable in Washington, D.C.
  • Various other articles linking Alfa Bank to funding projects associated with Vladimir Putin's daughter and other regime-friendly initiatives.

The EU Court dismissed the Council's argument that the claimant had not taken a firm stand against the invasion of Ukraine. The court emphasized that to satisfy the burden of proof, the Council must present a set of evidence specific, accurate, and consistent enough to establish a sufficient connection between the person subjected to the sanctions and the regime or situations they aim to combat.

The Ongoing Battle for Justice

The oligarchs have not yet won, and vigilance is necessary. The General Court's decision can be appealed within two months and ten days from the notification of the decision. It is crucial to prepare a robust evidence base for the appeal, focusing on solid legal arguments and factual proof of the criminal activities and convictions.

Furthermore, decisions on asset seizure and the conclusions of investigations into economic crimes must be meticulously prepared to defend the state's legal position in international courts or special bodies. This preparation will ensure that Russian oligarchs remain under sanctions, allowing their assets to be lawfully confiscated not only in Ukraine but also abroad to aid in the nation's reconstruction.