The EU Court Of Justice Ruled On Belarusian Businessman Shakutin

The accounts of his Lithuanian company remain frozen.

The Court of Justice of the European Union recognized justified the freezing of bank accounts of the Lithuanian company EM System. Although the firm itself is not on the EU sanctions lists, half of its shares are owned by Alexander Shakutin, a Belarusian businessman close to Lukashenko who is under sanctions.

The court's ruling emphasized that a company's assets can be blocked if it is controlled by a person on the sanctions list: "Control over the company and its economic resources is presumed if a sanctions-listed person holds a 50% stake."

Alexander Shakutin came under EU sanctions on December 17, 2020. The very next day, two Lithuanian banks - SEB and Citadele - froze EM System's accounts, citing the fact that a businessman from the sanctions list owns half of the company.

EM System tried to challenge the freeze in Lithuania's national courts and reached the Supreme Court. The company then appealed to the EU Court of Justice, which confirmed the legality of the measures.

The EU Court of Justice also noted that member states should develop a procedure allowing companies and individuals not included in the sanctions lists to challenge the freezing of funds.

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