The EU Court of Justice issued its decision in case T-608/24, Bazhaev v. Council, refusing to lift the EU sanctions on Bazhaev, who has been under the sanctions since April 2022 and whose sanctions were extended in 2014.
Bazhaev is the president of Alliance Group JSC and chairman of the board of directors of the Russian Platinum company.
“In 2021, the VEB.RF*, VTB Group and Russian Platinum have signed a memorandum of understanding on financing the development of the Chernogorsky platinum-copper-nickel deposit in the Krasnoyarsk Territory. The signing ceremony took place at the St. Petersburg International Economic Forum in the presence of President of the Russian Federation Vladimir Putin. [Bazhaev] is an influential businessman working in Russia, one of the 200 richest Russians, and an entrepreneur whose activities in the economic sector provide a significant source of income for the government of the Russian Federation. Besides, [Bazhaev] is connected with VEB.RF, the Russian Development Finance Institute, which provides active material or financial support to decision makers in Russia and those responsible for the annexation of Crimea and the destabilization of Ukraine,” the sanctions justification said.
In court, Bazhaev’s lawyers argued that the EU Council made a mistake in classifying him as an “entrepreneur engaged in business activities in sectors of the economy that provide a significant source of income for the Government of the Russian Federation”.
Moreover, according to his lawyers, VEB acted as an ordinary creditor and the loan agreement was concluded on market terms, with no advantages given to Russian Platinum. However, these arguments had no effect on the court’s decision.
The court’s decision is available in French.
* VEB.RF is a state corporation established by Russian federal law exclusively for the public good. In partnership with commercial banks, VEB.RF provides financing for large-scale projects to develop the country’s infrastructure, industrial production and social sphere. VEB.RF is also a government agent for Russia’s foreign debt, both of the Russian Government and of the former Soviet Union, and the management of certain pension funds through State Trust Management Company, a separate division of VEB.RF.
