EU court annuls sanctions against Belarus tire maker Belshina

The Court of Justice of the European Union (CJEU) has made a significant decision regarding sanctions imposed against Belarusian state-owned tire manufacturer Belshina AAT. After more than three years of legal proceedings, the CJEU ruled for the annulment of sanctions against Belshina, which were initially imposed by the EU in December 2021.

The court's decision, issued on 20 March, granted Belshina's application for annulment from the EU Belarus sanctions list and ordered the Council of Europe to cover the associated costs. These sanctions were imposed on Belshina on the basis that it is a prominent state-owned company that provides significant financial support to the government of Alexander Lukashenko, the long-standing president of Belarus.

The EU's case against Belshina alleged that the company played a role in repressing civil society by dismissing employees who participated in strikes following Lukashenko's controversial reelection in 2020. However, Belshina defended itself by stating that it had been operating at a loss and had actually received more funds in the form of Value Added Tax (VAT) than it had paid in taxes to the Lukashenko government.

Moreover, Belshina argued that the EU Council failed to provide evidence linking the dismissals of protesting employees to their opposition to Lukashenko's regime. This lack of evidence likely played a significant role in the CJEU's decision to annul the sanctions against the Belarusian tire maker.

The ruling marks a significant development in the ongoing legal battle surrounding EU sanctions against Belarus, highlighting the complexities and challenges involved in implementing such measures. It also underscores the importance of thorough investigation and substantiated evidence when imposing sanctions against entities accused of wrongdoing.

As Belshina celebrates this legal victory, the case serves as a reminder of the importance of upholding due process and ensuring that sanctions are based on credible evidence and fair legal proceedings.