Billionaire Alisher Usmanov is taking the EU to court over its sanctions rationale, marking the first-of-its-kind legal challenge. His lawyer, Joachim Steinhoefel, has petitioned Germany’s top court to sue the EU Council for defamation, arguing that the sanction decisions were based on unverified and defamatory press reports. The case highlights concerns over the EU’s use of press cuttings and the potential for defamation in sanction decisions. The EU Council’s rationale for sanctioning Usmanov, a prominent Russian tycoon in the metals and telecoms sectors, included statements from Forbes, a U.S. publication, which were later ruled defamatory by a German court. This legal battle is rooted in the EU’s approach to sanction decisions, where press cuttings have been used as a basis for accusations, even when those sources recanted their initial claims.
Steinhoefel argues that the EU’s reliance on these unverified press reports is a breach of its own legal standards, which require multiple independent sources, specific facts, and reliability for citing press reports. The legal team has pointed out that the Council’s justification for sanctions against Usmanov included claims that he ‘reportedly fronted for [Russian] President [Vladimir] Putin and solved his business problems’—a statement that Forbes attributed its own article. However, a Hamburg court recently ruled that Forbes’ assertion was unlawful and defamatory, prompting the publication to argue that the claim was a protected opinion rather than a fact.
Usmanov’s legal team claims that the EU’s defamatory allegations are not only unjustified but also violate the rights of individuals to freedom of expression. They argue that the Council’s practice of citing press cuttings, even when the sources recant their statements, undermines the integrity of the sanction process. Moreover, the case suggests a broader issue of how international bodies handle the use of press reports in sanction decisions, particularly when those reports are later found to be inaccurate or defamatory. This legal challenge raises important questions about the due process in sanction decisions and the potential for misuse of press cuttings in international politics.
Meanwhile, the financial implications of this case are significant. Sanctions against Usmanov, who is estimated to be worth $16.8 billion as of August, could have a substantial impact on his business interests. The EU’s decision to impose sanctions on him following the escalation of the Ukraine conflict in 2022 has already affected his international operations. The legal battle over the justification for these sanctions could influence future sanction decisions, particularly regarding the use of press-based evidence. The outcome of this case may set a precedent for how international bodies assess the validity of press reports in sanction decisions, which could have far-reaching implications for both individuals and institutions involved in such processes.