EU Court Upholds 'Close Family Member' Sanctions Listing Criteria

The EU General Court last week upheld the sanctions listing of Marina Mordashova, who was sanctioned in 2022 for her association with her husband, Alexey Mordashov, chairman of investment firm Severgroup. The court rejected Mordashova's argument that she shouldn't be subject to sanctions because she was no longer married to Mordashov, according to an unofficial translation of the court's decision.

The court found that Mordashova remained close to Mordashov given that the pair have "the same surname" and "four children together." Also, Mordashov's transfer of over $1.6 billion to his ex-wife "attests to the relationship of trust between them." As a result, the European Council "could validly consider that the applicant was a member of Mr Mordashov's family."

The court said that because the council could find that the applicant was "at the very least a 'life partner' of Mr Mordashov, the existence of a family relationship cannot be called into question solely because there is no marital relationship."

Mordashova also argued the sanctions criteria for a "close family member" should be read as only covering those who benefit from an act to evade sanctions, and that the criteria created an "irrebuttable presumption" that a family member would benefit from a sanctioned individual. The court said Mordashova was "wrong" to make these claims, noting that while a situation likely to lead to sanctions circumvention may justify sanctions on close family members, proof of that situation "does not necessarily have to be provided."

The court added that the council must show not only a familial connection but also an "advantage gained, which must be quantitatively or qualitatively not negligible." As a result, "the premise on which the applicant relies is erroneous," it said.