EU Court Clarifies Criteria for Freezing Assets Held Through Trusts
The EU Court has ruled that assets may be subject to freezing measures even in the absence of a direct legal link to a sanctioned person, where that person retains de facto influence or control over the assets through trust structures.
According to the Court, the concepts of “ownership” and “control” should be interpreted broadly and may encompass any form of influence over assets. In assessing whether assets should be frozen, authorities may take into account factual circumstances, the complexity of ownership structures, and indicators of potential sanctions circumvention.
The ruling was issued in a series of cases involving assets of Russian beneficiaries held through Bermuda trusts. The Court confirmed that the use of a trust does not, in itself, preclude the application of EU sanctions measures.
