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EU Sanctions against Russia: Russian Companies take legal steps before the Court of Justice of the EU (press review)

The news came through the international press (e.g., in BloombergBusinessweek) which revealed last week that several Russian companies have started legal proceedings before the General Court of the Court of Justice of the European Union. The applications have been submitted to the Court in early October 2014, and challenge the EU sanctions adopted this year.
 
At least 6 Russian companies affected by the EU sanctions have taken the decision to sue the European Council: the oil Company Rosneft (T-715/14, submitted 9.10.2014), Gazprom Neft, and 4 banks under control of the Russian state (Sberbank in case T-732/14, VTB Bank in case T-734/14, Vnesheconombank in case T-737/14 and Prominvestbank in case T-739/14). The text of the applications is not available.


Certain legal aspects in these applications are of particular interest:
 
1/ Burden of proof and nature of evidences used before the Court - The press article reports that, due to the nature of evidences accepted before the EU Court, the latter may more easily challenge the rationale behind the EU sanctions than for instance U.S. courts. ("European Courts rarely allow governments to present classified evidence under seal")
 
2/ The manner the companies are linked to the Russian government. The question here is to know whether private companies which are not controlled by the state or targeted by the sanctions but encompassed by the effects of the latter should bear the consequences of the sanctions to the same extent that state-controlled companies.
 
3/ The rationale behind the EU sanctions. In previous EU sanction cases, in particular against Iran, the Court did annulled some of the EU sanctions, which forced the European Union to reconsider its reasoning and/or appeal some of the General Court's judgment before the Court of Justice. See also decision in the Qadi case.
 
4/ Lack of suspensive effect of the proceedings on EU-sanctions. Another practical question is whether the proceedings before the Court of the EU have suspensive effect on the EU sanctions, which will not. The financial consequences for the companies concerned can be tremendous, which can ultimately lead to compensation claims, as it did in the UK before the Supreme Court (EU sanctions against the Iranian Bank Mellat).
 
Reminder:
 
The General Court has jurisdiction to hear, among others, direct actions brought by natural or legal persons against acts of the institutions, bodies, offices or agencies of the European Union (which are addressed to them or are of direct and individual concern to them) and against regulatory acts (which concern them directly and which do not entail implementing measures). Judgment from the General Court can be appealed before the Court of Justice.
 
References:
 
- "Putin's Response to EU Sanctions; See You in Court", Bloomberg Businessweek, 3 November 2014.
- "Rosneft Hires London Firm Zaiwalla on Sanctions Strategy", The Wall Street Journal, 13 October 2014
- "Gazprom Neft to Challenge EU sanctions in Court", Russia Today, 29 October 2014
- "European Sanctions", blog edited by Maya Lester and Michael O’Kane http://europeansanctions.com/

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