UK Court Rejects Sanctions Appeal of Former Russian Mining Company Director

The U.K. High Court of Justice's Administrative Court on Aug. 18 rejected a sanctions designation appeal by Eugene Shvidler, an associate of Russian oligarch Roman Abramovich and a director of mining giant Evraz. The court ruled the designation was "proportionate" and not "discriminatory."

Shvidler claimed his sanctioning was discriminatory, saying he was the only Evraz board member to have been listed, even though he, like other board members, resigned from his position the day of Abramovich's designation. But the court called his case "hopeless," ruling the evidence shows Shvidler was sanctioned for not just his role at Evraz but also due to his relationship with Abramovich. His former role in the company would not be enough to sanction him, Judge Neil Garnham said, noting that Evraz's other directors remain unsanctioned. The judge also said there was no evidence showing it was the "race, nationality or ethnicity of those individuals" that played a part in the U.K.'s decision not to sanction them.

Shvidler also claimed the sanctions disproportionately burden him and that his designation derives no real benefit to the country. The judge agreed with the defense's argument that the secretary of state for foreign affairs doesn't need to show the efficacy of each individual sanction decision to maintain a sanctions measure.

"The effectiveness of any sanctions regime depends, not on the effect of a particular measure directed at a single individual, but on the cumulative effect of all the measures imposed under that regime, together with other types of diplomatic pressure," Garnham said. While the effects of the listing are severe, they were considered by the secretary and are "temporary and reversible, not fixed and permanent."