EU Court Blocks Lithuania's Sanctions on Russian-linked Firm
The European Court of Justice blocked an attempt to replace evidence of control over a company with a general political presumption. As explained by an expert, assertions about the nature of the Russian political system alone are insufficient to designate foreign subsidiaries of Russian companies as subject to sanctions.
Consensus
- The European Court of Justice ruled that Lithuanian authorities cannot freeze the assets of Inter Rao Lietuva solely based on indirect connections to Russia.
- The court emphasized that proof of actual control, not just political assumptions, is required to justify sanctions.
- The case involved Inter Rao Lietuva, a Lithuanian subsidiary of the Russian energy holding company 'Inter RAO EES'.
- Lithuanian authorities had frozen the company's assets in 2022 based on its links to Russia and the Russian state.
- The European Court of Justice stated that general assumptions about the Russian political system are insufficient for applying sanctions.
- The court acknowledged that non-formal control may be considered if supported by objective and solid evidence.
- The final decision on the case must now be made by the Lithuanian court, taking into account the EU Court's ruling.
Points of divergence
- The Lithuanian Financial Investigation Service based its decision on the fact that Inter Rao Lietuva was 51% owned by Rao Nordic, which in turn was linked to 'Inter RAO EES', with Russian state structures among its main shareholders. — vesti
- Lithuanian authorities cited connections to the Russian state and President Vladimir Putin as grounds for freezing assets. — fontanka
- The Financial Times previously reported that EU countries have become less willing to support anti-Russian sanctions due to the impact of restrictions on business. — vesti
Coverage (2 sources)
- EU Court Prevented Arbitrary Interpretation of Anti-Russian Sanctions by Lithuania — Вести
- EU Court: one link with Russia is not enough for sanctions — Фонтанка