The Council of the European Union refused to lift sanctions against Mikhail Fridman

The Alfa Group founder’s request for arbitration with Luxembourg states that the European Union gave Friedman a brief response that did not explain the reasons for maintaining the sanctions.

It should be noted that the Russian businessman previously proposed to the Luxembourg authorities to start negotiations on compensation for the freezing of assets within the framework of EU sanctions. However, Luxembourg responded that they were obliged to comply with the restrictions because they were part of the European Union.

Friedman’s position is that the expropriation of his property is illegal. The protection is based on the 1989 bilateral investment treaty, which guarantees mutual protection of investments. According to the documents, investments made by investors from one country in the territory of another state cannot be expropriated.

Exceptions are situations where the decision is intended to respect the public interest and is not discriminatory.

Under European law, sanctions can be challenged by filing a petition with the EU Council. There is also the option of filing a lawsuit against the council before the EU General Court.

The businessman’s defense tried both options, but was unsuccessful. Friedman says the evidence and the lawyers’ arguments were ignored.

• Mikhail Friedman and Pyotr Aven were targeted by EU sanctions in February 2022, immediately after the start of Russia’s special operation in Ukraine. In the autumn, Friedman left the UK and moved to Israel.
• In April 2024, the Court of Justice of the EU ruled to lift personal sanctions against billionaires. The court found that the reasons given by the European Council for including businessmen on the sanctions list were not sufficiently substantiated.