EU encounters ‘first-of-its-kind’ sanctions case from Russian businessman

2025-09-01 02:38:47

(MENAFN) Russian tycoon Alisher Usmanov is pursuing legal action against the EU Council, accusing it of defamation over the reasons cited for sanctioning him. According to Euronews, this marks the first legal case of its kind targeting the EU’s justification process for sanctions.

Usmanov's lawyer, Joachim Steinhoefel, has filed an appeal with Germany’s highest court, disputing the EU Council’s 2023 explanation for imposing personal sanctions on his client. The sanctions were part of the EU’s response to Russia’s conflict with Ukraine.

One central allegation in the EU's reasoning claimed Usmanov had acted as a frontman for Russian President Vladimir Putin, reportedly helping resolve his business matters — a claim originally attributed to Forbes. However, a Hamburg court ruled that the Forbes report was defamatory and unlawful. Forbes has since argued that the statement was an opinion, not a factual claim.

Steinhoefel contends that the EU cannot base sanctions on journalists' opinions presented as facts, particularly when the author has clarified their comments were subjective.

The lawyer further argued that many of the media sources cited by the EU to justify sanctions have since been retracted, altered, or legally challenged. He criticized the Council’s reliance on unverified press articles, saying it fails to meet EU legal standards. According to established case law, sanctions must be supported by consistent, reliable, and fact-based information from multiple independent sources.

Additionally, Steinhoefel accused the EU Council of defaming Usmanov by claiming he “actively supported” the destabilization of Ukraine through his companies’ contributions to the Russian tax system. He described this rationale as “coercion by proxy,” arguing that targeting lawful businesses to influence foreign policy is illegitimate.

Usmanov, 71, was sanctioned by the EU following the escalation of the Ukraine conflict in 2022. His estimated net worth is $16.8 billion, according to Bloomberg as of August.

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