The CJEU confirms the ban on intermediation in transactions of Russian military equipment even if they are not imported by the EU

BRUSSELS, September 10 () –

The European Court of Justice has confirmed in a ruling on Tuesday that European sanctions against intermediation in the transaction of Russian military equipment must apply even if these products are not imported from the European Union.

The case took place in Romania, where the aeronautical company Neves 77 Solutions acted as an intermediary in a transaction between a Ukrainian company and an Indian company for the sale of 32 radio transmitters, of which 20 were manufactured in Russia.

The Romanian authorities, in accordance with European sanctions against the Russian military sector, imposed a fine of 30,000 lei (about 6,000 euros) and seized the amount received by Neves for these services, almost three million euros.

In light of this situation, a Romanian court has referred the issue to the CJEU, which in its ruling clarifies that the prohibition on providing intermediary services in relation to military equipment applies “even if these products have never been imported into a Member State.”

In this case, the transaction took place between Ukraine and India, with the Romanian entity as mediator, but he stressed that sanctions must stop these operations since the ban “could be easily circumvented” if, to avoid it, it were enough for these equipment to transit without passing through the territory of the Union.

Regarding seizure, the European Court said that European law allows for “the automatic seizure of all amounts received in connection with the provision of intermediation services relating to military equipment to an operator in Russia.”

The Court considers that this limitation “is appropriate” to ensure the effectiveness of the sanctions and follows the principle of proportionality in light of the objectives pursued by the Union, namely protecting the territorial integrity, sovereignty and independence of Ukraine.