Filenews 12 March 2022 - Nikoletta Kourousi
The EU reacted quickly and decisively to Russia's aggression on Ukraine by imposing severe sanctions, which are some of the toughest actions that states can take without going to war.
The measures are designed to burden not only Russia's economy, but also the finances of individual citizens, such as top politicians or prominent businessmen, for actions that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine.
It should be noted that since March 2014, the EU has gradually imposed several restrictive measures in response to Russia's attacks on Ukraine's territorial integrity, such as diplomatic measures, individual restrictive measures (asset freeze and travel restrictions), restrictions on economic relations with Crimea and Sevastopol and with the non-governmentally controlled areas of the Donetsk and Lugansk regions; as well as economic sanctions, sanctions on the media, but also restrictions on economic cooperation.
The list of targeted restrictive measures is constantly expanding, including more and more areas of political economic and social activity, such as trade, energy and trade.
In this publication, without examining the correctness and effectiveness of the measures, we attempt to shed light on the legal basis of the decisions, on which the individual restrictive measures - including the freezing of property of Russian businessmen - are based, and which are binding on Cyprus, as an EU Member State.
-862 persons and 53 entities on the sanctions list
First of all, it is noted that with the agreement to extend the scope of sanctions against Russia and Belarus on 9 March, the total EU restrictive measures have now come into force for 862 persons and 53 entities, while the list is constantly expanding.
In particular, the new measures impose restrictions on an additional 160 persons and amend Regulation (EC) No 765/2006 concerning restrictive measures in view of the situation in Belarus and Regulation (EU) No 833/2014 on actions by Russia, which destabilise the situation in Ukraine.
The 160 persons, registered for actions that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine, include:
— 14 oligarchs and prominent entrepreneurs active in key economic sectors, providing an important source of income to the Russian Federation — in particular in the metallurgy, agriculture, pharmaceutical, telecommunications and digital sectors — as well as their family members.
—146 members of the Council of the Russian Federation, who ratified the Governmental Decisions of the 'Treaty of Friendship, Cooperation and Mutual Assistance between the Russian Federation and the Donetsk People's Republic' and the 'Treaty of Friendship, Cooperation and Mutual Assistance between the Russian Federation and the Luhansk People's Republic'.
The legal framework for sanctions
It is first noted that restrictive measures (sanctions) are a key tool of the EU's common foreign and security policy (CFSP), through which the EU can intervene, where necessary, to prevent conflicts or to deal with emerging or ongoing crises. It is clarified that they are not punitive in nature, but their purpose is to bring about a change in policy or activity, by targeting entities and individuals in third countries, which are responsible for such malicious behaviour.
As explained to Philenews, The Assistant Professor of European Law and Personal Data Law of the Department of Law of Frederick University, Kouroupis Konstantinos, the possibility of approving sanctions in the EU is provided by Article 29 of the Treaty on European Union (TEU) and the supervision of their implementation by Article 215 of the Treaty on the Functioning of the European Union (TFEU).
In particular, Article 29 of the Treaty on European Union gives the Council of the European Union the power to adopt sanctions against governments of third countries (which are not EU countries), non-state entities and individuals (such as terrorists), with a view to changing their policy or activity. In addition, under Article 215 of the Treaty on the Functioning of the European Union, the Council may adopt the measures necessary to implement decisions, adopted pursuant to Article 29 TEU, to ensure that they are applied uniformly in all Member States.
Dr. Kouroupis also pointed out that a qualified majority is needed for the adoption of sanctions, informing the European Parliament accordingly, while he clarified that targeted individual sanctions do not apply outside the borders, i.e. they are imposed on a list of people who have direct or indirect activity within the EU.
-Possibility of challenging decisions in the courts
The professor explained that individuals or businesses affected by the present sanctions may legally challenge the restrictive measures imposed on them, the legality of which will be judged in European and international courts.
As Dr. Kouroupis mentioned, the case T-256/07 is typical, where the EU Court of First Instance vindicated Iranian citizens (People's Mojahedin Organization of Iran), who were subjected to restrictive measures for participation in nuclear proliferation and who, after appealing before the (then) Court of First Instance of the EU, seeking the annulment of a conviction of the Council of the EU, they managed to get off the sanctions list.
New regulations also from the UK
It is worth noting that restrictive measures against Russia have also been imposed by the United Kingdom, through new regulations, which allow the government to impose an asset freeze on those allegedly involved in either "destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine".
The UK's sanctions regime aims to encourage Russia to cease actions that the government considers to be aimed at:
A) - destabilisation of Ukraine, including allegations of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.
This includes persons who are held responsible for participation, providing support (including providing financial services or making funds, financial resources, goods or technology available) or promoting any political action that could be perceived in the above manner.
B)- benefiting from or supporting the Government of Russia.
This includes (a) carrying out work as an entity linked to the Government of Russia; (b) carrying out work of economic importance to the Government of Russia; (c) conducting business in an area of strategic importance to the Government of Russia; or (d) owning or control directly or indirectly or working as a director (executive or not), manager or equivalent: (i) an entity affiliated with the government of Russia; or (ii) a person, other than a natural person, falling under subparagraph (b) or (c).
Impact of sanctions
In conclusion, as Dr. Kouroupis said, "it appears that the crisis in Ukraine is radically changing the Europe we knew until today and is putting the EU's architectonic security on a new footing". He also stressed that "the observance of fundamental principles of international as well as European law must be fully safeguarded, while everyone's hope is that the political wills of states will be in line with the principle of legality for the purpose of consolidating world peace.
