EU Court Confirms Usmanov as “Non-Controlling” Stakeholder in USM

The European Union’s General Court has delivered a significant ruling concerning Russian-Uzbek billionaire Alisher Usmanov, clarifying the extent of his influence within his business empire while maintaining the sanctions regime imposed against him.

In its judgment on 3 September 2025 in case T-1117/23, the court rejected Usmanov’s application to be de-listed from EU restrictive measures but acknowledged that his position within USM Holdings, the conglomerate he co-founded, does not equate to operational control. The judges stated that although Usmanov retains a 49 percent stake in the group — which holds substantial interests in Russian metallurgy, mining, and telecommunications — this amounts to a “non-controlling” stake under EU law.

“It is true that this is a non-controlling stake,” the court noted, underlining that minority ownership does not automatically grant decision-making authority within a company’s governance framework.

The ruling is viewed as an important clarification for sanctioned individuals who hold large but technically non-dominant shareholdings in multinational corporations. While the court accepted Usmanov’s argument that his shareholding does not give him effective control of USM, it nevertheless concluded that he continues to fall within the EU’s sanctions criteria. He remains listed as a “leading businessperson” alleged to have close ties to the Kremlin, and therefore subject to asset freezes and travel bans across the European Union.

Usmanov, 71, has consistently denied accusations of political influence or active involvement in Russia’s current business landscape. In his legal submissions, he emphasized that he retired from corporate life years ago and no longer participates in day-to-day management. Following the judgment, he reiterated his position, dismissing the EU’s claims as unfounded and politically motivated.

The case reflects broader tensions in the EU’s sanctions regime, which since 2022 has sought to target influential Russian business figures seen as benefitting from or supporting the war in Ukraine. However, the Usmanov ruling underscores the complexity of defining “control” in corporate structures where shareholdings are divided among multiple partners and influence is not always straightforward.

Legal experts suggest the decision could set a precedent for how courts interpret minority shareholdings in future sanctions disputes. While confirming that significant but non-majority shareholders may not meet the threshold of “control,” the ruling also signals that such distinctions do not guarantee removal from sanctions lists if political or economic influence can still be inferred.

For USM Holdings, the judgment means continuity: the company will remain associated with a sanctioned individual, though formally recognized as not under his control. For Usmanov, the outcome is mixed — a partial legal vindication on the issue of control, but a firm reminder that EU sanctions remain firmly in place.

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