EU Annuls Sanctions on Iranian Shipping Firms

Iran nuclear map

By MarEx 2015-01-22 16:50:04

The European Union's second highest court on Thursday annulled EU sanctions on 40 shipping companies hit with asset freezes as part of pressure on Tehran over its nuclear program.

But they will remain under sanctions for now after the General Court gave the EU time to appeal or to decide whether to re-impose sanctions using different legal grounds.

The court's rulings were handed down as six major powers and Iran strive to meet an end-June deadline for a long-term agreement to curb Tehran's nuclear activities in exchange for relief from economic sanctions.

The General Court struck down EU sanctions on 40 shipping companies, including Hamburg-based Ocean Capital Administration GmbH.

The companies were placed on the EU sanctions list because it said they were controlled or otherwise linked to Islamic Republic of Iran Shipping Lines, which had previously been put under sanctions.

The court found that at the time the 40 companies were placed on the sanctions list the EU had not given valid reasons for saying that Islamic Republic of Iran Shipping Lines was supporting nuclear proliferation.

It therefore annulled the sanctions against the 40 companies but again gave the EU time either to appeal or to reinstate the sanctions using new legal grounds.

The Council of EU governments could not immediately be reached for comment.

The decisions were the latest in a number of legal reverses the EU has suffered over the validity of its sanctions. It has responded to similar court decisions by relisting Iranian companies using different criteria.

Copyright Reuters 2015.