General Court of the European Union
PRESS RELEASE No 131/16
Luxembourg, 30 November 2016

Judgment in Case T-720/14
Arkady Rotenberg v Council

Press and Information

The General Court confirms the fund-freezing measures imposed on Mr Arkady
Rotenberg for the period 2015-2016
However, it annuls the freezing of funds for the period 2014-2015
In response to the Ukraine crisis, in early 2014 the Council adopted restrictive measures (freezing
of funds and a ban on staying in the territory of the EU) against natural and legal persons whose
actions undermine or threaten the territorial integrity, sovereignty and independence of Ukraine.
With effect from 30th July 2014, Mr Arkady Rotenberg, a Russian businessman, was subject to
those restrictive measures on the following grounds: ‘Mr Rotenberg is a long-time acquaintance of
President Putin and his former judo sparring partner. He has developed his fortune during
President Putin’s tenure. He has been favoured by Russian decision-makers in the award of
important contracts by the Russian State or by State-owned enterprises. His companies were
notably awarded several highly lucrative contracts for the preparations of the Sochi Olympic
Games. He is a major shareholder of Giprotransmost, a company which has received a public
procurement contract by a Russian State-owned Company to conduct the feasibility study of the
construction of a bridge from Russia to the illegally annexed Autonomous Republic of Crimea,
therefore consolidating its integration into the Russian Federation which in turn further undermines
the territorial integrity of Ukraine’.
With effect from 15 March 2015, the restrictive measures imposed on Mr Rotenberg were
extended. While much of the first statement of reasons was retained, with the exception of the last
sentence set out above, the Council added two further grounds: ‘[Mr Rotenberg] is also the owner
of the company Stroygazmontazh which has been awarded a State contract for the construction of
a bridge from Russia to the illegally annexed Autonomous Republic of Crimea, therefore
consolidating its integration into the Russian Federation which in turn further undermines the
territorial integrity of Ukraine. He is the chairman of the board of directors of publishing house
Prosvescheniye, which has notably implemented the project “To the Children of Russia:
Address — Crimea”, a public relations campaign that was designed to persuade Crimean children
that they are now Russian citizens living in Russia and thereby supporting the Russian
Government’s policy to integrate Crimea into Russia’. The restrictive measures were subsequently
extended, with the same statement of reasons, until 15 March 2016 and then again until
15 September 2016.
Mr Rotenberg applied to the General Court to annul the restrictive measures adopted against him
until 15 September 2016.1
By today’s judgment, the General Court partly upholds the action for annulment brought by
Mr Rotenberg. It annuls the restrictive measures in respect of the period from 30 July 2014 to
14 March 2015, but confirms them in respect of the period from 15 March 2015 to 15 September
2016.

1

The restrictive measures against Mr Rotenberg were subsequently further extended until 15 March 2017, the statement
of reasons remaining the same. The judgment of the General Court does not, however, concern the period after 15
September 2016, since that period could not be taken into account in the proceedings.

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 As regards the period from 30 July 2014 to 14 March 2015, the Court notes that the first
statement of reasons is vitiated by manifest errors of assessment and, for that reason, annuls
the restrictive measures imposed on Mr Rotenberg. The Court considers that the criterion by which
individuals such as Mr Rotenberg may be made subject to restrictive measures does not require
that they benefit personally from the annexation of Crimea or the destabilisation of Eastern
Ukraine. It is sufficient that they benefit from one of the ‘Russian decision-makers’ responsible for
those events, and it is not necessary to establish a link between the advantages enjoyed by the
persons designated and the situation in Ukraine.
In addition, in order for that criterion to be compatible with the principle of legal certainty, the
Russian decision-makers from whom the benefits enjoyed by those targeted are derived must
already, at the very least, have started to prepare for actions destabilising Ukraine. Where that
condition is satisfied, the recipients of those benefits cannot be unaware of the decision-makers’
involvement in those preparations, and can expect their resources, derived at least in part from
those benefits, to be targeted by restrictive measures, with the aim of preventing them from being
able to support the decision-makers in question.
As regards Mr Rotenberg specifically, the Court finds that (1) the reference to ‘Russian decisionmakers’, without further details, is too vague and is not sufficient to justify the restrictive measures;
(2) the contracts with the Russian State or with State-owned enterprises, from which Mr Rotenberg
is said to have benefited, relate to an earlier period than that during which Russian decisionmakers, notably President Putin, had started to threaten Ukraine (those contracts relate in
particular to the preparations for the Sochi Olympic Games, which were held in the winter of 2014);
(3) the Council has not proved that Mr Rotenberg was favoured by President Putin at the time
when the latter took action against Ukraine; and (4) the Council has not been able to prove that
Mr Rotenberg was himself a shareholder or majority shareholder in Giprotransmost.
As regards the period from 15 March 2015 to 15 September 2016, the Court comes to the same
conclusion as it does in respect of the earlier period with regard to the grounds common to both.
The Court therefore examines whether the new grounds added by the Council in March 2015 are
also vitiated by manifest errors of assessment. The Court concludes that they are not and thus
declines to annul the restrictive measures from 15 March 2015.
In particular, the Court notes that Mr Rotenberg does not deny that he is the owner of
Stroygazmontazh or that that company was awarded a State contract for the construction of a
bridge between Russia and Crimea. Since that bridge will establish direct access between Russia
and Crimea and thus facilitate trade and military exchanges between the two territories, the
Council was entitled to consider that, in view of Russia’s actions leading to the holding of what was
described as a referendum on the status of Crimea, followed by Russia’s recognition of the results
of that referendum and the illegal annexation of Crimea, the construction of the bridge would
consolidate the integration of Crimea into Russia, thereby further undermining the territorial
integrity of Ukraine.
As to the project entitled ‘To the Children of Russia: Address — Crimea’, the Court notes that
this is a public relations campaign designed to persuade Crimean children that they are Russian
citizens living in Russia. This project, established on the orders of the Russian President in
connection with the alignment of Crimea to Russian educational standards, does therefore
support the Russian government’s policy of integrating Crimea into Russia and
consequently helps to further undermine the territorial integrity of Ukraine.
NOTE: An appeal, limited to points of law only, may be brought before the Court of Justice against the
decision of the General Court within two months of notification of the decision.
NOTE: An action for annulment seeks the annulment of acts of the institutions of the European Union that
are contrary to EU law. The Member States, the European institutions and individuals may, under certain
conditions, bring an action for annulment before the Court of Justice or the General Court. If the action is well
founded, the act is annulled. The institution concerned must fill any legal vacuum created by the annulment
of the act.
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