The NSD, a key financial institution in Russia, was added to the EU sanctions list in June 2022 due to its crucial role in supporting Russia's financial system and its provision of material and financial support to the Russian government. As a result, the NSD’s assets were frozen.

The NSD sought an annulment of the acts by which its name was included and remained on the EU sanctions list, arguing that the restrictive measures violated its rights and those of its customers, whose assets were also impacted.

The General Court, however, rejected these claims, ruling that the NSD failed to prove that the Council of the EU had erred in assessing its role within Russia’s financial system. The court also clarified that the NSD was not entitled to invoke its customers' property rights in the action, but noted that national authorities must ensure compliance with EU law, particularly regarding property rights under the EU Charter of Fundamental Rights. In addition it is acknowledged that affected customers can seek legal remedies through national courts for infringement of their right to property enshrined in the Charter of Fundamental Rights.

This ruling reinforces the EU’s stance on sanctions tied to the war in Ukraine, confirming the legitimacy of measures taken against entities supporting Russia’s financial system.

The press release can be found here.

The judgment can be accessed here.