EU General Court Rejects Uralchem CEO's Application to Annul Sanctions Listing

The EU General Court on Nov. 8 rejected a Russian CEO's application to annul his sanctions designation. The court said the European Council properly laid out a statement of reasons for the sanctions decision, adding that the council "adduced a set of sufficiently specific, precise and consistent indicia capable of demonstrating" that Dmitry Mazepin "is a leading businessperson involved in a sector providing a substantial source of revenue to the Russian Government."

Mazepin is the owner-CEO of Russian chemical product manufacturer Uralchem, the largest ammonium nitrate producer in Russia and the second-largest manufacturer of ammonia and nitrogen fertilizers. Following Russia's invasion of Ukraine, he was sanctioned for being a member of President Vladimir Putin's "closest circle" and a leading businessperson in the country.

The council cited as evidence that Mazepin was invited to a meeting Putin held with Russian business executives focused on how to respond to Western sanctions that followed the invasion of Ukraine.

Mazepin sued to contest the sanctions, arguing that his right to effective judicial protection was infringed and that the council failed to meet its obligation to state reasons for the decision. He said the council "failed to identify the economic sector allegedly providing a substantial source of revenue to" Russia and that "it is not clear from the statement of reasons what specific conduct" the sanctions respond to insofar as that conduct undermines Ukraine's sovereignty. He also said it is not clear which sanctions criteria have been applied to him.

The court rejected all three claims, finding the council clearly indicated the legal basis and evidence on which it relied. "It must be concluded ... that the statement of reasons on which the contested measures are based is comprehensible and sufficiently precise so as to enable the applicant to ascertain the reasons which led the Council to conclude that including his name on the lists at issue was justified and to challenge the legality of them before the EU Courts, and to enable the latter to exercise their power of review," the court said.

The court similarly dismissed the three remaining claims from Mazepin, which alleged a "manifest error of assessment," "failure to observe the principle of proportionality and an infringement of fundamental rights," and a failure to observe the equal treatment principle.