EU Court Confirms Sanctions Can Freeze Russian Assets Held Through Trusts
EU Court Ruling on Freezing Russian Assets Linked to Sanctions
Overview of the Court Decision
AMSTERDAM, May 21 (Reuters) - The European Union can freeze assets linked to Russians sanctioned over the war in Ukraine, even if those assets are held by a trust and there is no direct legal link to the persons involved, the EU's Court of Justice ruled on Thursday.
Key Points from the Ruling
- The court said assets can also be frozen if they are only indirectly linked to the person on the sanctions list.
- Concepts of ownership and control should encompass "all forms of power or influence exercised over assets", it said, even if there was no legal link between them and the person concerned.
- It said this served the purpose of the freezing of funds, meant to limit "as much as possible" any transactions that may be carried out with them.
- Any circumvention of sanctions should also be prevented, it added.
Details of the Cases Involved
Background of the Italian Court Cases
- The EU court ruling related to three cases brought by an Italian court.
- These dealt with the seizure by Italian authorities of companies and a yacht held through complex ownership structures by trusts, but seen to be owned by Russians on the EU's sanctions list.
- The companies had challenged the freezing of those assets, as they said the sanctioned persons had no power over them.
Court's Reasoning and Final Decision
- The EU court dismissed their claim, and said indications of ownership or control could also be inferred from circumstances or from "needlessly complex legal structures".
(Reporting by Bart MeijerEditing by Gareth Jones)
