The EU Council in court called the purpose of sanctions against NSD to undermine the economy of the Russian Federation – Kommersant
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The Court of General Jurisdiction of the European Union heard the claim of the National Settlement Depository (NSD), which challenged the European sanctions imposed against it. The EU Council, which imposed sanctions against NSD, claims that the depositary “supports the Russian leadership by ensuring the reliability and stability of the Russian financial system.” The hearing took place on January 23, I became familiar with the positions of the parties RBC.
NSD filed the lawsuit back in August 2022. As stated in the court materials, there are two “systemically important” payment systems in Russia – NSD and the Bank of Russia. The EU Council believes that NSD supports the Russian leadership “by ensuring the reliability and stability of the Russian financial system.”
The EU Council believes that failures in systemically important payment systems “could potentially jeopardize the functioning of the entire economy,” and NSD manages just such a system. It is noted that the difficulties of the NSD can lead to financial and economic instability. In this regard, according to the council, NSD supports the Russian leadership. The Depositary contends that this link between economic stability and management support has not been established.
No decision was made following the meeting. The trial will continue. The interests of the depository in the EU court are represented by lawyers Nikoleta Tuominen and Maria Krestianova from Brussels-based Dentons and three representatives of the European firm Strelia. NSD defenders are asking the court to lift the sanctions imposed on the depositary in June 2022.
In introducing restrictions, the EU Council noted that NSD is almost 100% owned by the Moscow Exchange, which is “under a high degree of control” by the Russian state. However, as the defense notes, despite the fact that Moscow Exchange owns 99.997% of NSD shares, its influence is limited by the shareholders agreement. In addition, it is reported that the government does not control the exchange, either legally or in fact, and the Bank of Russia, Sberbank and VEB.RF, which own 30% of the shares of the Moscow Exchange, do not have preemptive rights or veto rights.
About what are the chances of NSD to lift the restrictions imposed by the EU – in the material “The Depository Cries to Justice”.
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