EU Sanctions on Iran’s Central Bank Rescinded

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The European Court of Justice has rescinded the European Union’s decision in 2012 to freeze the assets of Iran’s central bank.

The BBC News reported that this judgment of the Court of First Instance can appeal to the European Union.

In a judgment issued in Luxembourg on Thursday, September 18, the court noted that the information proved that there is no evidence before the wrap of Iran’s central bank about the sanction imposed on Iran and this should lift the ban on this bank.

“The reasons relied on are so vague and lacking in detail that the only possible response was in the form of a general denial. Those reasons therefore do not comply with the requirements of the case-law”. The court said.

The court also ordered the European bloc to “bear one half of its own costs and to pay one half of the costs of Central Bank of Iran.”

At the beginning of 2012, the US and EU imposed sanctions on Iran’s oil and financial sectors aimed at preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

Also on October 15, 2012, the EU foreign ministers reached an agreement on another round of sanctions against Iran.

Iranian analysts believe the central bank has between $80bn-$100bn frozen in overseas accounts, mainly in China and India. They suspect the blocked assets in European banks are less than $10bn.

One Iranian senior banker told Financial Times (FT) the court’s decision many also help persuade the US that the continuation of sanctions against Iran was difficult.

According to FT, an official in the Council said the court was increasingly challenging sanctions based on unnamed intelligence sources. Although he was unable to comment directly on the Iran case, he said the usual response from Brussels was to appeal and seek to re-impose the sanctions by using evidence that is publicly available.

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