On 11 September, the CJEU refused to lift sanctions against the NSD. It was expected by investors whose assets have been frozen since 3 June 2022, but still they were disappointed. However, the reasoning of the judgement is quite encouraging.

And here's why.

Lawyers of investors with frozen assets tried to use two grounds for release: a special ground adopted specifically for the NSD and provided for in Article 6 (b) 5 of the Regulation and the so-called general ground under Article 6 (1) of the Regulation.

The CJEU, however, thought otherwise. In its new judgement, the CJEU indicated that the concept of ‘funds’ and ‘payments’ should be interpreted broadly.

Glimmer of Hope

Unfortunately, it is not clear from the judgement whether the special grounds take precedence over the general grounds. However, investors who were not directly related to the sanctioned person holding their blocked assets now have a serious argument to ask the Belgian Treasury or the Council of State to reconsider their denials of assets release.

See details here.