Pre-Amendment vs Post-Amendment
Article 3(1)(g) of Council Regulation (EU) No. 269/2014 as worded before the amendments of 5 June 2023“leading businesspersons or legal persons, entities or bodies involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation ...”
Article 3(1)(g) of Council Regulation (EU) No. 269/2014 as amended on 5 June 2023
“leading businesspersons operating in Russia and their immediate family members, or other natural persons, benefitting from them, or businesspersons, legal persons, entities or bodies involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation ...”
Therefore, now EU blocking sanctions may be imposed against:
- leading businesspersons operating in Russia (and not only in economic sectors providing a substantial source of revenue to the Government of the Russian Federation);
- immediate family members, or other natural persons, benefitting from leading businesspersons operating in Russia; and
- any businesspersons involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation.
Relevance of the Amendment
Prior to the Amendment, only a few EU sanctions programmes included family connection as a criterion for listing (in particular, the Syria or Iraq sanctions programmes).
The fact that family relations with Russian businesspersons is now included on the list of criteria for listing could change the EU Court of Justice’s practice on this issue.
It should be reminded that the EU Court of Justice previously held in Tay Za that sanctions cannot be imposed solely on the ground of a family connection. In addition, the EU Court of Justice recently annulled sanctions imposed on the mother of the Russian businessman Yevgeny Prigozhin.
The criteria for imposing blocking sanctions are formulated quite broadly. We expect the list of listed persons to be extended based on the above criteria.
