The Enterprise for the Management of Property Abroad is an organisation owned by the Russian Federation that owns dozens of properties in the Czech Republic, in Prague, Brno, Karlovy Vary, Vlkančice and Jevany near Prague. Its property in the Czech Republic was frozen under the sanctions introduced after the Russian invasion of Ukraine.[1]
Listing on the sanctions list
The government of the then prime minister Petr Fiala (ODS) put the enterprise on the sanctions list in November 2023, out of concern that it provides material and financial support to the Russian government. The decision led to the blocking of the enterprise's bank accounts and of its property registered in the land register. The step was subsequently upheld by the Supreme Administrative Court of the Czech Republic and by the Constitutional Court.[1][3]
Disputes over the frozen properties
The Financial Analytical Office regarded the properties as an economic resource controlled by the enterprise, which the Municipal Court in Prague confirmed. In its cassation appeal the enterprise argued that it does not manage some of the properties and that the office relied only on a presumption.[1][2]
In July 2026 the enterprise was unsuccessful with its complaints against the blocking of a bank account in the Czech Republic and of one property in Prague-Bubeneč.[1]
Decision of the Supreme Administrative Court of 30 September 2026
The Supreme Administrative Court dismissed the enterprise's cassation appeal concerning the freezing of 61 properties owned by the Russian Federation. The court stated that, in order to prove a sanction, it is enough to show beyond reasonable doubt that the sanctioned person has a legal or de facto ability to influence the use of the property, and that a requirement to prove the relationship to each individual property down to the last detail would, in the court's view, make the practical application of sanctions impossible.[1][2][3]
In its judgment the court wrote: “Sanction mechanisms are a legitimate instrument 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]
The enterprise is conducting several court disputes over individual frozen properties, so far without success. The freeze does not apply to diplomatic missions, for example the embassy or the ambassador's residence.[1][2]
Pages linking here
- Dismissal of cassation appeal of Russian enterprise against freezing of properties
- Supreme Administrative Court of the Czech Republic
Sources
- ČTK / České noviny — 30 September 2026
- Seznam Zprávy — 30 September 2026
- iDNES.cz — 30 September 2026