EU: Notarising Russian Purchase Agreements in Breach of Sanctions?

Oct 4, 2024 Benn-Ibler Rechtsanwälte

Notarising the purchase of real estate by an unlisted Russian company does not constitute a breach of the ‘Russia Sanctions’. The act of notarisation does not constitute a legal advisory service, according to the European Court of Justice (ECJ).

A notary in Berlin refused to certify a purchase agreement for an apartment in Berlin owned by a Russian company. In his opinion, it could not be ruled out that the act of notarisation would violate the ban on providing legal advisory services to legal entities established in Russia. The EU introduced this general ban in 2022 with the aim to increase pressure on Russia to end its war of aggression against Ukraine.

The Berlin Regional Court, which heard the case, referred it to the ECJ.

The ECJ’s ruling was a follows:

Notarisation of a sale and purchase agreement for real estate owned by a legal entity with a registered office in Russia is not within the scope of the prohibition on the provision of legal advice.

Notarisation is an independent and impartial task in the public interest which is the responsibility of notaries.

According to the ECJ, the tasks associated with the certification of a property, such as the payment of the purchase price to the seller, the cancellation of encumbrances on the property and the transfer of ownership in the land register also do not constitute legal advisory services.

The ECJ also clarified that interpreters accepting assignments in the context of notarial activities do not provide legal advisory services. Their services are therefore not covered by the prohibition.

ECJ, C-109/23 (5 September 2024)