EU Advocate General Says Notary Services Not Barred Under Legal Services Sanctions

EU Advocate General Laila Medina last week said that the "authentication by a notary of a contract of sale of immovable property owned by a legal person established in Russia" isn't covered by the EU's sanctions provisions on Russia, "as long as the engagement in transactions is allowed for that person under that regulation and the authentication is not supplemented by legal advice."

The case concerned two German nationals who sought to buy a Berlin apartment owned by Russian company Visit-Moscow. The pair asked a notary to authenticate the purchase, though the notary refused under fears that such action would violate EU sanctions on Russia covering "legal advisory services." The German individuals sued in a Berlin regional court, which referred the questions to the EU General Court.

Medina held that the preparing and executing a contract of sale aren't "advisory in nature" and thus don't amount to "legal advisory services," adding that the authentication of contracts itself shouldn't be prohibited because authentication by a notary is required for transferring immovable property in Germany and such a transfer is allowed for non-sanctioned Russian parties.

Even if the bar on legal services applied, the advocate general said, the authentication, but not the execution, of a contract of sale by a notary involving Russian parties would fall under an exception to the sanctions, which allows for services "strictly necessary to ensure access to judicial, administrative or arbitral proceedings."