In the framework of the 12th package of EU sanctions against the Russian Federation, published in the Official Journal of the European Union (hereinafter, “OJEU”) of 18 December 2023, an important new development has been adopted regarding the frozen assets of deceased sanctioned persons.
Indeed, by Decision (CFSP) 2023/2871 and Regulation (EU) 2023/2873, amending respectively Decision 2014/145/CFSP and Regulation (EU) 269/2014, concerning the adoption of restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine, a paragraph has been introduced which states that:
That is to say, with regard to natural persons who are subject to the freezing of their assets and the prohibition on making assets available to them, an important potential limitation is established, in the sense that if any of these persons should die while subject to the above restrictions, the Council may maintain his or her name on the list of sanctioned persons if his or her removal from the list would risk undermining the objectives of the Union’s restrictive measures because of the likelihood that the assets concerned would otherwise be used to finance Russia’s military actions against Ukraine, or other actions that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine.
This new provision raises serious doubts as to its legality in that it may mean that penalties imposed on a natural person are passed on to his or her successors and heirs even if they are not involved in actions against Ukraine. We believe that this is a rule that should be challenged for annulment as soon as the opportunity arises.
With the collaboration of José Luis Iriarte, Professor of International Private Law at the Universidad Pública de Navarra.
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