A business partner of Russian oligarch Roman Abramovich has lost his legal challenge against UK sanctions imposed after Russia’s invasion of Ukraine. The Supreme Court ruling is seen as a key test of Britain’s sanctions system.
Eugene Shvidler, who served on boards of companies owned by the former Chelsea FC owner and now lives in the US, was sanctioned by the UK government in March 2022 as part of measures targeting Russian-linked oligarchs and officials following Putin’s invasion order.
Born in the USSR in 1964 and raised in Moscow, Shvidler – now a British citizen – had previously challenged his sanctions designation in court in 2023 and appealed last year. He argued the measures caused excessive hardship and discriminated against him as Russian-born, while claiming his ties to Abramovich weren’t close enough to justify the sanctions.
On Tuesday, the Supreme Court rejected his appeal by a 4-1 majority, ruling sanctions must be tough to work. The judgment stated: “Sanctions often need to be severe and open-ended to be effective. The goal is to prevent Mr. Shvidler from enjoying his assets and wealthy lifestyle.”
The court found the government had shown a “rational connection” between sanctioning Shvidler and the sanctions’ aims, noting their effectiveness depends on the combined impact of all measures taken.
However, in a dissenting opinion, Lord Leggatt called the majority decision “Orwellian,” arguing the government failed to show proper justification for freezing Shvidler’s assets. “This doesn’t come close to justifying such a severe restriction of his rights,” he wrote.
Shvidler responded: “This ruling takes me back to the USSR I fled 36 years ago as a stateless refugee. Back then, people could lose their rights with no protection – that’s how this judgment makes me feel.”
The UK government sanctioned Shvidler for his association with Abramovich, who allegedly benefited from or supported the Russian government. Officials cited Shvidler’s long directorship at Abramovich-linked steel company Evraz and his chairmanship of Millhouse LLC, which managed assets for both men.
In a related case, the court unanimously rejected an appeal by Dalston Projects Ltd, owner of a detained luxury yacht ultimately belonging to Russian citizen Sergei Naumenko, who claimed lost charter income.If you have information to share on this topic, you can contact us securely using these methods:
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