ECHR finds sanctions by NSDC unlawful: could set precedent
The European Court of Human Rights (ECHR) has ruled that the freezing of assets and suspension of one of Ukraine’s largest lottery operators, M.S.L. LLC, constituted interference with the right to peaceful enjoyment of property.
This is reported by Censor.NET with reference to Fakty.
The ECHR stated that such interference did not meet the criterion of legality, as the national legal framework was unclear and unpredictable regarding the specific criteria under which sanctions could be applied to private companies.
The Court also found the interference to be disproportionate, noting that the restrictions were imposed without assessing the company’s actual conduct, solely based on its formal connection with other entities.
The ECHR emphasized that the applicant had no real access to an independent court capable of reviewing the legality of the sanctions. The judgment states that the decisions of the National Security and Defense Council (NSDC) and the Presidential Decree were of a "political nature," and the courts were limited in their ability to examine them on the merits. According to the Court, the absence of independent oversight created a risk of arbitrariness.
The Court further concluded that the applicant had no effective legal remedy to seek the annulment or review of the sanctions. Appeals to the general jurisdiction courts proved futile, as those courts ruled that such decisions could not be substantively reviewed.
The case of M.S.L., TOV v. UKRAINE concerned the company's appeal against the sanctions imposed on it by the decision of the National Security and Defence Council in 2-15. The restrictions were subsequently extended in 2016 and 2017.
In its appeal to the ECtHR, the company argued that the national courts had not verified whether the state authorities had sufficient grounds for imposing the sanctions and whether they were supported by evidence.
According to the company, the president's discretionary powers in the area of national security should not limit judicial review and do not relieve the courts of their obligation to verify the existence of grounds for imposing sanctions in accordance with the Sanctions Law.
Attorney Oleksii Shevchuk believes that the ECHR's decision may become a precedent that will affect not only the fate of M.S.L., but also the entire practice of applying sanctions in Ukraine.
He also noted that the National Security and Defence Council should take into account the decisions of international institutions.
