The Supreme Administrative Court of the Czech Republic (NSS) in Brno dismissed the cassation appeal of the Russian Enterprise for the Management of Property Abroad, which had challenged the freezing of more than sixty properties in Czechia. The enterprise may not dispose of the properties because it is on the sanctions list following the Russian invasion of Ukraine. The information was published on 30 September 2026 on the court's official notice board, from which the Czech News Agency learned of it [1].
Scope of the decision
The decision concerns 61 properties owned by the Russian Federation in Prague, Brno, Karlovy Vary, Vlkančice and Jevany near Prague [1][2]. In July 2026 the enterprise was unsuccessful with its complaints against the blocking of its bank account in Czechia and of one property in Prague-Bubeneč [1][2].
Grounds of the decision
The Financial Analytical Office regarded the properties as an economic resource controlled by the enterprise. This approach was confirmed by the Municipal Court in Prague [1][3]. In its cassation appeal the enterprise claimed that it does not administer some of the properties and that it was merely a hypothesis of the office [1][3].
According to the NSS, it is sufficient to demonstrate beyond reasonable doubt that the sanctioned person has the ability to control the disputed property, that is, a legal or factual possibility to influence its use [1][3]. The court stated that a requirement to prove in detail the relationship of the entity to each individual property would negate the purpose of the law and complicate the implementation of sanctions [1][2][3].
The judgment states: “Sanctions mechanisms are a legitimate tool for responding to serious violations of international law, threats to security or other destabilising activities. Effective implementation of sanctions at the same time supports the credibility of the rule of law.” [1][2][3]
Context
The inclusion of the enterprise on the sanctions list was decided by the government of the then Prime Minister Petr Fiala (ODS) in November 2023, out of concern that the enterprise materially and financially supports the Russian government [1][2]. This decision had already been confirmed earlier by the NSS and the Constitutional Court of the Czech Republic, which led to the blocking of bank accounts and of property in the land register [1][2]. The enterprise is conducting several court disputes over individual frozen properties, in which, according to the Czech News Agency, it has so far been unsuccessful [1][2][3]. The measure does not apply to diplomatic missions, for example embassies or the ambassador's residence [1][2][3].
Chronology
- — The Supreme Administrative Court rejected a Russian company's complaint against the freezing of dozens of its properties in Czechia. ČTK / České noviny Seznam Zprávy
Sources
- ČTK / České noviny — 30 September 2026
- Seznam Zprávy — 30 September 2026
- iDNES.cz — 30 September 2026