The General Court of the European Union this Wednesday upheld the economic sanctions imposed on the Russian entity Russian Maritime Register of Shipping (RMRS), specialized in the inspection and certification of ships, although it has considered “disproportionate” that the EU definitively withdrew from it the recognition to carry out these tasks on behalf of the Member States, rather than limiting itself to suspending it temporarily.
In its ruling, against which an appeal is still possible, European Justice maintains the prohibitions on making investments and carrying out operations with this Russian state-owned organization, understanding that the restrictions are motivated by its relationship with Moscow and are “appropriate” to help achieve the objective of “exerting pressure” on Russia so that it ends its aggression against Ukraine.
However, the judges argue that the Council could have opted to suspend the European recognition of RMRS instead of completely revoking it, a “less burdensome” option that would have made it possible to achieve the same purpose without forcing the entity to begin a new procedure to recover that status if sanctions were lifted in the future.
In this way, the Court does not dispute that the organization sees its capacity to certify ships on behalf of the Member States limited, but rather the decision to definitively remove a recognition that could not be restored automatically once the restrictive measures disappear.
The case dates back to the measures adopted by the Twenty-Seven after the start of the Russian invasion of Ukraine in February 2022, when they expanded the package of economic sanctions against Moscow and included RMRS, an entity headquartered in Saint Petersburg that since 1998 had held European recognition to inspect and certify vessels.
The organization challenged these decisions before European Justice, which has now dismissed the majority of its allegations and has determined that the Council sufficiently provided reasons for the measures adopted, based on its belonging to the Russian state and its role in the maritime sector.
In particular, the judges point out that, if the restrictions were annulled in the future, RMRS would have to go through a new procedure to obtain recognition again, the outcome of which would be “uncertain,” since it does not have a right either to initiate that process or to obtain authorization again.
In addition, the ruling declares inadmissible the appeal filed against the prohibition of access to ports and locks of the EU for vessels certified by the entity, by understanding that this measure affects directly the vessels themselves and only indirectly the organization.
The ruling may be appealed in cassation before the Court of Justice of the European Union within a period of two months and ten days from its notification.