National Settlement Depository v. Council of the EU

On June 3, 2022, the National Settlement Depository (NSD), Russia’s central securities depository, was added to the EU sanctions list as part of the EU’s sixth sanctions package, which led to the freezing of its accounts at Euroclear and Clearstream holding Russian investors’ assets of about ₽5.7T. On September 11, 2024, the General Court of the European Union dismissed NSD’s action (Case T-494/22), holding that NSD could not rely on an infringement of the property rights of its clients, who must seek the release of their assets individually. On June 11, 2026, the Court of Justice of the European Union dismissed NSD’s appeal (Case C-801/24 P), following the opinion of Advocate General Laila Medina, but noted that the property rights of Russian investors not included in the sanctions lists are protected in the EU.

One of the most significant challenges to EU sanctions brought by a key participant in Russia’s financial infrastructure. The position of the Court of Justice is of note: a sanctioned entity cannot defend the property rights of its investor clients before the EU courts, while the investors themselves are guaranteed protection of their property rights.