Brief

On 15/01/2025, the European Court of Justice (ECJ) issued an update regarding "War in Ukraine: the General Court confirms the restrictive measures adopted against the Russian mobile telephone operator MegaFon". The judgment dismissed MegaFon's action for annulment, confirming that the inclusion and maintenance of its name on the list of entities subject to restrictive measures were well-founded.

Communications Directorate
Press and Information Unit curia.europa.eu

PRESS RELEASE No 04/25
Luxembourg, 15 January 2025
Judgment of the General Court in Case T-193/23 | MegaFon v Council
War in Ukraine: the General Court confirms the restrictive measures
adopted against the Russian mobile telephone operator MegaFon
The inclusion and maintenance of that company’s name on the lists of entities subject to the restrictive
measures were well founded
MegaFon, a public joint stock company established in Moscow (Russia), is one of the principal mobile telephone and
telecommunications operators in Russia.
In February 2023, taking the view that MegaFon provides direct support to Russia’s military and industrial complex
in its war of aggression against Ukraine, the Council 1 included that company on the list of entities subject to the
restrictive measures adopted by the European Union. Those measures prohibit European operators from, inter alia,
selling, supplying, transferring or exporting dual-use goods and technology to MegaFon, and from providing it with
technical or financial assistance in connection with such goods and technology.
In July 2023 2 and in January 2024, 3 the Council decided to extend the restrictive measures against that company.
MegaFon brought an action before the General Court of the European Union seeking annulment of those acts
adopted by the Council in so far as they include and maintain its name on the list of Russian entities subject to
restrictive measures. According to that company, those acts fail to state reasons, are vitiated by an error of
assessment, and infringe its rights of defence and the principle of proportionality.
The General Court dismisses that action in its entirety.
It states that the Council did in fact set out the actual and specific reasons why it decided to apply restrictive
measures to MegaFon. Those measures are intended to prevent a major player in the mobile telephone sector in
Russia from acquiring certain goods and technology that could be used to support Russian aggression against
Ukraine, including by supplying telecommunications services to the Russian army.
The General Court also rejects MegaFon’s arguments relating to the infringement of its rights of defence. It notes in
particular that the Council was under no obligation to hear MegaFon before including it on the
aforementioned list. Such a step would have precluded the element of surprise that ensures the effectiveness of
inclusion on the list. Furthermore, since the extension of the restrictive measures was based on the same grounds,
the Council had no obligation to inform MegaFon of its intention to maintain the latter’s name on the list.
In addition, the General Court states that the Council did not make an error of assessment by including and
maintaining MegaFon on the lists at issue.
Last, although the measures at issue limit MegaFon’s freedom to conduct a business and affect its reputation, they
do not constitute a disproportionate and intolerable interference. In particular, the General Court observes
that they satisfy an objective of fundamental public interest for the international community. Those measures are
Communications Directorate
Press and Information Unit curia.europa.eu
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necessary and appropriate in order for that objective to be pursued effectively.
NOTE: An action for annulment seeks the annulment of acts of the institutions of the European Union that are
contrary to EU law. The Member States, the European institutions and individuals may, under certain conditions,
bring an action for annulment before the Court of Justice or the General Court. If the action is well founded, the act
is annulled. The institution concerned must fill any legal vacuum created by the annulment of the act.
NOTE: An appeal, limited to points of law only, may be brought before the Court of Justice against the decision of
the General Court within two months and ten days of notification of the decision.
Unofficial document for media use, not binding on the General Court.
The full text and, as the case may be, the abstract of the judgment is published on the CURIA website on the day of
delivery.
Press contact: Jacques René Zammit ✆ (+352) 4303 3355.
Images of the delivery of the judgment are available on 'Europe by Satellite' ✆ (+32) 2 2964106.

1 Council Decision (CFSP) 2023/434 of 25 February 2023 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions
destabilising the situation in Ukraine; Council Regulation (EU) 2023/427 of 25 February 2023 amending Regulation (EU) No 833/2014 concerning
restrictive measures in view of Russia’s actions destabilising the situation in Ukraine.
2 Council Decision (CFSP) 2023/1517 of 20 July 2023 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions
destabilising the situation in Ukraine.
3 Council Decision (CFSP) 2024/422 of 29 January 2024 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions
destabilising the situation in Ukraine.

Highlights content goes here...

Purpose:
The European Union’s General Court has delivered a judgment in Case T-193/23, affirming the restrictive measures adopted against Russian mobile telephone operator MegaFon. This decision upholds the EU’s ability to impose economic sanctions on entities deemed to be supporting Russia’s military and industrial complex in its war of aggression against Ukraine.

Effects on Industry:
The judgment has significant implications for the telecommunications industry in Russia, as well as globally. The restrictive measures prohibit European operators from selling, supplying, transferring or exporting dual-use goods and technology to MegaFon, effectively isolating the company from the international market. This decision may deter other Russian companies from providing support to the military-industrial complex, thus limiting their access to Western markets and technologies.

Relevant Stakeholders:
The judgment affects various stakeholders, including:

  • European telecommunications operators
  • MegaFon and other Russian mobile telephone and telecommunications operators
  • The international community, as the decision sets a precedent for imposing economic sanctions on entities supporting Russia’s aggression against Ukraine

Next Steps:
The General Court’s judgment will likely be appealed to the Court of Justice, which may further clarify the EU’s powers in imposing economic sanctions. In the meantime, European operators must comply with the restrictive measures, while MegaFon and other affected companies must adapt to the changed landscape.

Any Other Relevant Information:
This decision is part of a broader effort by the EU to maintain pressure on Russia over its actions in Ukraine. The judgment reaffirms the EU’s commitment to upholding international law and protecting its citizens from the consequences of Russia’s aggression.

European Court of Justice (ECJ)

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