The EU's top court on Wednesday ordered the lifting of the bloc's sanctions imposed on the daughter of slain Libyan dictator Moamer Kadhafi.
The Court of Justice of the European Union annulled the decision to maintain an asset freeze and visa ban on Aisha Kadhafi, 44, over a decade after the measures were imposed over her ties to a bloody crackdown in the North African country.
The court ruling said that Kadhafi, who lives in exile in Oman, no longer plays a role in Libyan politics and the EU authorities had failed to explain why she remained "a threat to international peace and security".
A spokesman said the Council of the EU "will analyse carefully the judgement and decide on this basis on the way forward".
"The designation remains in force at least until the period for a possible appeal from the Council has expired (2 months)," the EU spokesman said.
Aisha Kadhafi was hit with sanctions by the EU in 2011 after the United Nations placed her on a blacklist over the brutal repression of an uprising against her father's regime.
After the fall of Tripoli to rebels in August 2011, Aisha, her mother, and one of her brothers escaped to neighbouring Algeria.
They were later granted refuge in the Gulf sultanate of Oman on condition they do not carry out political activities.
Aisha, a lawyer by profession and a former UN goodwill ambassador, had been part of an international defence team for Saddam Hussein after the Iraqi leader was ousted in the 2003 US-led invasion.