The European Union's General Court on Wednesday upheld sanctions against oligarch Dmitry Mazepin, affirming his status as a leading businessperson in Russia and a significant owner of UralChem, one of the country's largest mineral fertilizer manufacturers.

UralChem's Economic Significance

Although UralChem's revenues are smaller compared to those from Russia's energy sector, its contributions remain substantial to Russian government reserves, the General Court emphasized. This supports the EU Council's decision to maintain a freeze on Mazepin's assets, including his 48% stake in UralChem, which was imposed in September 2022. The sanctions aim to increase the economic pressure on Russia in light of its war efforts in Ukraine.

UralChem Owner Can't Shift EU Sanctions : Strategic Importance of UralChem

The EU Council justified its sanctions on Mazepin, highlighting UralChem as a strategic asset. The company claims to be the largest producer of ammonium nitrate and the second-largest producer of ammonia and nitrogen fertilizers in Russia. Mazepin attempted to overturn the decision, arguing the council's decision was based on a "manifest error." He pointed out that UralChem's tax contributions to Russia's federal budget amounted to $5.95 million, a minor sum compared to the country's approximately $343.3 billion total budget.

Court's Dismissal of Appeal

Mazepin also noted his sale of a 52% stake in UralChem Group's holding company and his resignation as CEO in March 2022, arguing that the situation justifying his initial sanction had changed. However, the General Court dismissed his appeal, stating it was "unambiguously clear" that Mazepin remained a leading businessperson due to his ownership and former CEO status.

"There is a rational connection between targeting leading businesspersons in sectors like UralChem's and the objective of the restrictive measures to pressure Russia to end its war in Ukraine," the court ruled.

UralChem Owner Can't Shift EU Sanctions :  Mazepin's Connection to Putin

The court highlighted that in early 2022, Mazepin met with President Vladimir Putin and other Russian government members to discuss responses to Western sanctions. Mazepin expressed gratitude to Putin for supporting the chemical industry, which he called "a key component of the development of agriculture both in Russia and abroad."

The court concluded that Mazepin is a member of Putin's "closest circle" and supports policies designed to undermine Ukraine's sovereignty, justifying the continued sanctions.

Related Ruling on Nikita Mazepin

The General Court's decision to uphold sanctions on Dmitry Mazepin follows its earlier ruling that there was insufficient evidence to maintain sanctions on his son, Formula One driver Nikita Mazepin. On March 20, the court held that sanctions could only be upheld if the council established a link between Nikita and his father's activities beyond their family relationship, which the council failed to do.

UralChem Owner Can't Shift EU Sanctions : Legal Representation

Mazepin is represented by Davide Rovetta, Massimo Campa, Massimo Moretto, Vincenzo Villante, T. Marembert, and A. Bass Lawyers. The council is represented by Petra Mahnic and J. Rurarz. Latvia is represented by J. Davidoviča and K. Pommere. Full counsel information was not available Wednesday.