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Defamation vs. Diplomacy: EU Council Faces Landmark Legal Test

A German lawyer is taking the EU Council to court in a potentially historic defamation case. If successful, it could be the first time an EU institution is held liable in a national court for defamatory content in its sanctions rationale.
The case centers on the Council’s 2023 decision to sanction businessman Alisher Usmanov. His lawyer, Joachim Steinhoefel, argues that the Council relied on unverified and unlawful media claims to justify the listing.
There is one key allegation, Usmanov “reportedly fronted for President Putin.” The Council cited Forbes, but a German court ruled the claim unlawful. Forbes insists it was opinion, not fact. Other sources cited by the Council include a tweet that was later retracted and a quote from Kurier, which were also banned from dissemination by German courts. Steinhoefel claims over 60 court rulings and media corrections have debunked the Council’s narrative.
The lawsuit argues the Council failed to meet EU legal standards for using press sources, multiple independent reports, specific facts, and consistency with the record. Instead, it relied on “unverified press clippings,” even when authors recanted.
EU courts don’t allow defamation suits against institutions. So Steinhoefel filed in Hamburg but the Council claimed immunity. Now he’s appealing to Germany’s Federal Court of Justice. Citing Article 19(4) of the Basic Law, the right to legal redress. The suit doesn’t challenge the sanctions themselves it seeks to stop the Council from repeating defamatory statements.
If the appeal succeeds, the EU Council could face trial in Hamburg.
This case could redefine how EU institutions handle reputational claims and whether individuals have recourse when political decisions rely on shaky media sourcing.