Case T‑731/15

(publication by extracts)

Sergiy Klyuyev

v

Council of the European Union

(Common foreign and security policy — Restrictive measures taken in view of the situation in Ukraine — Freezing of funds — List of persons, entities and bodies subject to the freezing of funds and economic resources — Maintenance of the applicant’s name on the list — Duty to state reasons — Legal basis — Factual basis — Manifest error of assessment — Rights of defence — Right to property — Right to reputation — Proportionality — Protection of fundamental rights equivalent to that guaranteed in the European Union — Plea of illegality)

Summary — Judgment of the General Court (Sixth Chamber), 21 February 2018

1. Acts of the institutions — Statement of reasons — Obligation — Scope — Restrictive measures taken having regard to the situation in Ukraine — Freezing of funds of persons involved in the misappropriation of public funds belonging to the Ukrainian State — Decision falling within a context known to the person concerned, enabling him to understand the scope of the measure taken against him — Whether summary statement of reasons sufficient — Limits — Statement of reasons not capable of consisting of a general and stereotyped formulation

   (Art. 296 TFEU; Charter of Fundamental Rights of the European Union, Art. 41(2)(c); Council Decisions (CFSP) 2015/1781 and (CFSP) 2016/318; Council Regulations No 2015/1777 and No 2016/311)

2. Actions for annulment — Pleas in law — Lack of or inadequate statement of reasons — Separate ground from the one concerning substantive legality

3. Common foreign and security policy — Restrictive measures taken having regard to the situation in Ukraine — Freezing of funds of persons involved in the misappropriation of public funds belonging to the Ukrainian State — Misappropriation of public funds — Meaning — Acts of misappropriation of public funds or assets capable of undermining the institutional and legal foundations of Ukraine and respect for the rule of law in that country

   (Council Decision 2014/119/CFSP, Art. 1(1)(a), as amended by Decision 2015/143/CFSP; Council Regulation No 208/2014, Art. 3(1), as amended by Regulation No 2015/138)

4. EU law — Values and objectives of the Union — Values — Respect for the rule of law — Rule of law — Meaning

   (Arts 2 TEU and 49 TEU)

5. European Union — Judicial review of the legality of the acts of the institutions — Restrictive measures taken having regard to the situation in Ukraine — Ambit of the review — Proof the measure well-founded — Obligation on the Council systematically to verify evidence submitted by the authorities of a non-Member country — None

   (Charter of Fundamental Rights of the European Union, Art. 47; Council Decisions (CFSP) 2015/1781, (CFSP) 2016/318 and (CFSP) 2017/381; Council Regulations No 2015/1777, 2016/311 and No 2017/374)

6. Common foreign and security policy — Restrictive measures taken having regard to the situation in Ukraine — Freezing of funds of persons involved in the misappropriation of public funds belonging to the Ukrainian State — Nature of those measures — Purely protective measures — No criminal character

   (Council Decisions (CFSP) 2015/1781 and (CFSP) 2016/318; Council Regulations No 2015/1777 and No 2016/311)

7. Common foreign and security policy — Restrictive measures taken having regard to the situation in Ukraine — Freezing of funds of persons involved in the misappropriation of public funds belonging to the Ukrainian State — Adoption of a restrictive measure subject to a criminal penalty being imposed — None

   (Council Decision 2014/119/CFSP, Art. 1(1)(a), as amended by Decision 2015/143/CSFP; Council Regulation No 208/2014, Art. 3(1), as amended by Regulation No 2015/138)

8. Common foreign and security policy — Restrictive measures taken having regard to the situation in Ukraine — Freezing of funds of persons involved in the misappropriation of public funds belonging to the Ukrainian State — Assessment of the legality by reference to the information available at the time of adoption of the decision

9. Fundamental rights — Rights of defence — Right to effective judicial protection — Restrictive measures taken having regard to the situation in Ukraine — Obligation to disclose individual and specific grounds for the decisions adopted — Obligation to disclose incriminating evidence — Scope

   (Charter of Fundamental Rights of the European Union, Arts 41(2) and 47; Council Decisions (CFSP) 2015/1781 and (CFSP) 2016/318; Council Regulations No 2015/1777 and No 2016/311)

10. Common foreign and security policy — Restrictive measures taken having regard to the situation in Ukraine — Freezing of funds of persons involved in the misappropriation of public funds belonging to the Ukrainian State — Infringement of the right to property and the right to reputation — None

    (Charter of Fundamental Rights of the European Union, Art. 17(1); Council Decisions (CFSP) 2015/1781 and (CFSP) 2016/318; Council Regulations No 2015/1777 and No 2016/311)

1.  See the text of the decision.

   (see paras 58-60)

2.  See the text of the decision.

   (see para. 61)

3.  See the text of the decision.

   (see paras 74, 78-80, 83, 233)

4.  See the text of the decision.

   (see paras 75-77)

5.  See the text of the decision.

   (see paras 100-104, 109-113, 121, 254, 255)

6.  See the text of the decision.

   (see paras 107, 108)

7.  See the text of the decision.

   (see para. 120)

8.  See the text of the decision.

   (see para. 125)

9.  See the text of the decision.

   (see paras 152-154)

10.  See the text of the decision.

    (see paras 174-190)