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He had renounced his Russian citizenship after leaving the former Soviet Union in 1998 to move to America. He was given a British visa in 2004 and became a British citizen in 2010. He has five children, all British.

Anderson said Shvidler has asked the Foreign Office five times for advice on what he should do to exert influence over Abramovich and, in turn, Vladimir Putin. Those requests have been ignored, Anderson said. The government's stance was arbitrary, seemingly "tantamount to, 'You never know, designation might do some good,'" Anderson said.

Shvidler lost his first attempt to overturn sanctions in August 2023 when the High Court ruled that the government was permitted to use the restrictive measures to send a signal about Britain's stance on benefiting Russia's regime, even indirectly.

The Court of Appeal upheld Shvidler's designation in February 2024, concluding that there did not need to be a "perfect fit" between sanctions and pressuring Russia to end the war if there was a "rational connection." But the appeals court ruled that the High Court had not gone far enough in assessing whether the government's decision met that test.

But Anderson argued Wednesday that the court had failed to act on its own guidance. Despite ruling that the High Court should have analyzed whether the Foreign Office's decision was proportionate, taking into account the evidence, the Court of Appeal failed to do just that, Anderson said. The Court of Appeal should have reheard the case rather than simply reviewing the High Court's findings, he argued.

James Eadie KC, counsel for the government, defended Shvidler's designation before the justices, arguing that the sanctions regime was "a key pillar of U.K. foreign policy in response to a grave threat to European and international peace and security."

Eadie said that the courts have some oversight of whether its decisions are proportionate but that the Foreign Office had broad authority to impose sanctions, a regime whose effectiveness depends on the cumulative effect of each individual measure.

The appeal is being heard over two days, with linked proceedings involving a super yacht in London that has been frozen as an asset to be heard by justices on Thursday.

Justices Robert Reed, Philip Sales, George Leggatt, Vivian Rose, and David Richards appeared for the court.

Shvidler is represented by David Anderson KC and Malcolm Birdling of Brick Court Chambers, instructed by Peters & Peters LLP.

The government is represented by James Eadie KC, Jason Pobjoy, and Rayan Fakhoury of Blackstone Chambers, instructed by the government legal department.