The EU Court agreed on the need to restrict trade with the Moscow-based mobile operator, as it could be helping the Russian army with its invasion of Ukraine.
The EU was right to ban trade with Russian mobile operator Megafon following the invasion of Ukraine, judges ruled on Wednesday.
In 2023, the EU added the company to its extensive list of sanctioned entities, arguing it directly supported Russia’s military-industrial complex – but MegaFon protested its rights had been infringed.
“The inclusion and maintenance of that company’s name on the lists of entities subject to the restrictive measures were well founded,” judges at the EU’s General Court said in a statement on Wednesday.
The court agreed dual-use goods sold to MegaFon could help Russia pursue its invasion of Ukraine, for instance if it provided telecoms services to the army.
The company had also argued it should have had the chance to challenge the measures before they were brought in – but judges said that would have ruined the “element of surprise” in sanctions, meaning companies or wealthy individuals could organise their affairs to circumvent restrictions.
The ruling concerning MegaFon, which, according to industry group the GSM Association has 74 million customers in Russia, is one of a large number of judicial reviews of EU measures taken in response to the war, which have sometimes led to victories for those deemed loyal to Vladimir Putin.
EU judges have quashed restrictions on banking tycoons Mikhail Fridman and Petr Aven, arguing there wasn’t enough proof they’d aided Russian decision-makers or undermined Ukraine.
But the court has upheld travel bans and asset freezes imposed on other high-profile Russian oligarchs, including former Chelsea FC owner Roman Abramovich and chemicals magnate Dmitry Mazepin.
Counsel for MegaFon declined to respond to a request for comment from Euronews.
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