Russian tycoon fails in EU sanctions legal bid

Oleg Deripaska had challenged restrictions imposed on him by the bloc over his alleged involvement in the Ukraine conflict

The European Court of Justice has rejected a legal bid by Russian businessman Oleg Deripaska to lift sanctions imposed on him by the EU Council over the Ukraine conflict, EU Law Live reported on Wednesday.

The measures in question reportedly include decisions and regulations that freeze the assets of individuals and entities allegedly involved in actions compromising Ukraine’s sovereignty and territorial integrity.

The founder of leading global aluminum company Rusal, Deripaska was blacklisted by the EU in April 2022 and filed a lawsuit against the EU Council later that year.

According to court documents, the Russian businessman referred to three arguments in the action: infringement of the right to effective judicial protection and of the duty to state reasons; a manifest error of assessment regarding the reasons advanced by the Council; and infringement of the principle of proportionality and of fundamental rights.

In the claim, Deripaska asked the court to order the council to make a provisional payment of €1 million (over $1 million) “in respect of the non-material damage suffered by the applicant,” and that the council pay the court costs.

“The claim is rejected. Oleg Vladimirovich Deripaska has been ordered to bear his [court] costs and the costs of the EU Council,” the judge announced on Wednesday, as quoted by TASS.

The Russian tycoon has also been sanctioned by the US, the UK, Australia, New Zealand, and Canada. In September 2022, the US Department of Justice (DOJ) announced charges against Deripaska for allegedly violating the sanctions Washington imposed on Moscow over the Ukraine conflict. According to the DOJ statement, the Russian businessman could face “a maximum sentence of 20 years in prison.”

Deripaska has repeatedly said the sanctions the West had imposed on Russia are ineffective and outdated, likening the measures to an economic “wonder-weapon,” the effectiveness of which is doubtful and could be harmful to the global economy as a whole. In an interview with the Financial Times in 2023, the businessman claimed that the Russian economy had not only survived sanctions, but has been growing stronger through new trade ties with the Global South and increased investment in domestic production.