EU Court Upheld Sanctions on BelAZ and MAZ
State-owned manufacturers face continued trade restrictions as the EU confirms their role in regime funding.
Updated on Sept. 28, 2026 in Economic Policy
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The General Court of the EU rejected annulment applications from Belarusian state-owned manufacturers BelAZ and MAZ. The ruling confirms that the companies will remain under EU sanctions due to their continued financial support of the Lukashenko regime.
Why it matters
This decision solidifies the legal precedent that state ownership and significant budget contributions constitute valid grounds for sanctions. For operators, it underscores the persistent regulatory risk of doing business with entities that serve as primary revenue sources for sanctioned governments.
State-owned enterprises generate 38% of Belarus budget revenue, a figure the court used to justify the sanctions. These companies have lost multiple legal challenges to their status since 2023.
The players
BelAZ
A Belarusian state-owned manufacturer of large trucks and dump trucks.
MAZ
A state-owned automotive manufacturer that allegedly supplies military trucks to the Russian army.
General Court of the EU
A constituent court of the Court of Justice of the European Union responsible for reviewing the legality of acts by EU institutions.
The details
The General Court dismissed cases T-239/24 and T-240/24, finding that the EU Council correctly relied on existing evidence that the firms remain key revenue streams for the state. By validating the use of older evidentiary grounds, the court signaled that international sanctions are not automatically invalidated by the passage of time if the core economic relationship persists. The ruling specifically affirmed that BelAZ’s heavy machinery and MAZ’s automotive production remain central to the state’s financial stability.
Timeline
2020: Employee protests followed national elections.
2021: The EU placed BelAZ and MAZ under initial sanctions.
2023: Both companies lost their first legal challenges to the listings.
2024: The EU renewed the sanctions designations.
2025: The EU renewed the listings and added military supply allegations.
Market Landscape
This ruling follows the pattern set by the 2023 decisions, further entrenching the legal legitimacy of the EU's sanctions strategy against state-owned Belarusian entities. It signals a consistent judicial deference to the Council's use of economic importance as a basis for restricting trade.
Operators should review their supply chains for any exposure to state-owned entities in Belarus to avoid potential downstream compliance issues. Maintain strict due diligence on vendor ownership structures to ensure compliance with evolving international restrictions.
The takeaway
The court's decision confirms that long-standing evidence of state revenue contributions is sufficient for maintaining sanctions. Ensure that your compliance team monitors the ownership status of all suppliers in the region to mitigate the risk of dealing with sanctioned state-owned enterprises.
Further reading
For broader analysis on regulatory shifts, visit Economic Policy.
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Do you believe targeting major state-owned companies is an effective way to apply international sanctions?
