The European Court of Justice (ECJ) has said that two trusts connected to fertilizer group EuroChem are not themselves subject to EU sanctions imposed on the company’s founder, Russian businessman Andrey Melnichenko.
In a 29 October order, the Court stated that neither Firstline Trust — which ultimately holds EuroChem’s shares — nor its trustee, Linetrust PTC Ltd, are mentioned in the EU’s statement of reasons for freezing Melnichenko’s assets. The Court further confirmed that the funds and economic resources of both trusts were not frozen under the acts listing Melnichenko, nor by any other EU measures.
The ruling dismissed Linetrust’s request to intervene in the ongoing legal proceedings concerning Melnichenko’s designation. While the order does not address EuroChem directly, the Court’s confirmation that the trusts owning the company are not themselves designated reduces a long-standing compliance drag on the company and its counterparties.
The EU sanctions, introduced in March 2022 in response to Russia’s invasion of Ukraine, included Melnichenko and his wife, Aleksandra, among 160 individuals added to the EU’s restrictive measures list.
EuroChem, which is the fourth-largest fertilizer producer, with operations in Russia, the EU, Brazil, China, and Kazakhstan, faced significant disruption following the sanctions.
The company halted production at its Antwerp plant due to supply and power cuts before Belgian authorities determined that the facility itself was not targeted by EU measures, allowing operations to resume.
In Lithuania, EuroChem’s Lifosa plant also experienced stoppages after local banks froze its accounts in 2022. Sanctions-related restrictions were lifted in June 2024, enabling the plant to restart, though EuroChem reported substantial losses during the shutdowns.
The Melnichenko family, whose personal assets remain frozen, are challenging EU sanctions.
