The U.S. Court of Appeals for the D.C. Circuit has scheduled oral argument for Wednesday, October 1, 2025, at 9:30 a.m. in Diegelmann v. Bessent. Each side will have ten minutes; one counsel per side may argue.

The case traces back to February 2024, when the U.S. Treasury’s OFAC placed Axel Diegelmann, his sons, and their Liechtenstein-based precious metals firms on its sanctions list for alleged links to Russia’s metals trade.

Three Judges

Diegelmann challenged the move in Washington, but a district court upheld the designations last November. He has since taken the case to the D.C. Circuit Court of Appeals.

The panel is Circuit Judges Gregory G. Katsas and J. Michelle Childs, and Senior Circuit Judge Harry T. Edwards. 

Classified Administrative Record

Judge Katsas was nominated to the D.C. Circuit by President Donald Trump (2017); Judge Childs by President Joe Biden (2022); and Senior Judge Edwards joined the court after nomination by President Jimmy Carter (1980).

In a recent order, the court directed the government to provide pinpoint citations to the classified administrative record supporting several core assertions in its brief, including alleged efforts to disguise the origin of Russian precious metals and to obfuscate ownership structures.

Very Brief Slice

The Justice Department replied by directing the panel to a handful of pages in the classified appendix and indicated it could furnish additional material related to specific issues if requested.

In other words, the Government is pointing the court to a very brief slice of a very large classified record, while reserving the option of further closed submissions.

Scope of OFAC Designations

At stake is not only the fate of the Diegelmann family but also the scope of OFAC’s discretion in applying U.S. sanctions.

The Treasury has interpreted its authority over the Russian metals and mining sector broadly, extending it to the trade and processing of gold.

No Comment from Diegelmann

If the courts endorse this expansive reading, the precedent could reach far beyond Liechtenstein: in theory, any dealer in gold, precious stones, or jewelry worldwide could risk sanctions simply by transacting with Russian nationals.

finews.com asked Mr. Diegelmann whether he planned to travel to Washington for the hearing, but he did not respond.