Position of the Court
In September 2024, the court ruled that the National Settlement Depository (NSD) failed to prove that the European Council erred in concluding that the organization is a systemically important financial institution. According to the judges, NSD provides valuable financial services to the Russian government and Central Bank, contributing substantially to Russia's financial system.
The court also believes that NSD's activities provide significant material and financial support to the Russian authorities, enabling them to continue destabilizing situation in Ukraine.
Property Rights of Private Investors
The court also dismissed NSD's argument that the sanctions and asset freeze violated the property rights of private investors, the depository's clients.
NSD cannot claim property rights, the court emphasized, as the frozen assets do not belong to the organization. Clients have legal remedies available in national courts to claim a violation of their property rights.
Unfreezing of Clients' Assets
The court stressed that national authorities responsible for implementing restrictive measures must ensure compliance with the property rights order described in Article 52 of the Charter of Fundamental Rights of the European Union when considering requests for the unfreezing of clients' assets.
In practice, since 2022 there already are examples of successful asset unfreezing.
You require legal support to unfreeze assets in Euroclear and Clearstream? Contact us for an individual assessment of eligibility in your situation.