EU General Court Upholds Sanctions Listing of Russian Investment Firm

The EU General Court on June 12 rejected Russian investment fund VEB.RF's application to be removed from the bloc's Russia sanctions regime, according to an unofficial translation. The European Council sanctioned the financial institution for helping undermine the territorial sovereignty of Ukraine and providing material support to "Russian decision-makers responsible for the annexation of Crimea or the destabilization of Eastern Ukraine."

The court said this decision, based on these two factors, was adequately supported. Regarding its efforts to undermine Ukrainian sovereignty, the court said the council "has proven that the applicant participated in projects with military industry companies and that, in doing so, it provided support for actions which compromised or threatened territorial integrity, sovereignty and independence of Ukraine."

The court said the council properly found that VEB.RF supports Russian decision-makers based on its "investment policy" and participation in projects in Crimea and eastern Ukraine. The council noted that VEB actively diversifies the Russian defense sector and took part in projects with Russian military industry firms.

In its suit, VEB claimed that it was improperly sanctioned since it's a non-profit organization. The court rejected this notion on the ground that the "elements are sufficient to conclude that the applicant constitutes an important credit institution for the Russian financial system."