Top UN court rejects Iranian bid to free assets frozen by US
World Business News - POSTED: 2023/03/30 16:47
World Business News - POSTED: 2023/03/30 16:47
The United Nations’ top court on Thursday rejected Tehran’s legal bid to free up some $2 billion in Iranian central bank assets frozen by U.S. authorities to be paid in compensation to victims of a 1983 bombing in Lebanon and other attacks linked to Iran.
In a 10-5 majority ruling, the International Court of Justice said it did not have jurisdiction to rule on the Iranian claim linked to the central Markazi Bank.
The world court’s vice-president, Kirill Gevorgian, said the majority “upholds the objection to jurisdiction raised by the United States of America relating to the claims of the Islamic Republic of Iran” related to the bank.
In a complex, 67-page judgment, the world court also found that some other U.S. moves to seize assets of Iran and Iranians in the United States breached a 1955 treaty between the countries and said they should negotiate compensation. If they fail to reach a number, they will have to return to the Hague-based court for a ruling.
But the largest part of the case focused on Bank Markazi, and its frozen assets of $1.75 billion in bonds, plus accumulated interest, that are held in a Citibank account in New York. The court said that it did not have jurisdiction based on the 1955 Treaty of Amity because the protections it offers do not extend to central banks.
Teams of lawyers present for both countries at Thursday’s hearing did not comment on the ruling.
At hearings last year, Iran cast the asset freeze as an attempt to destabilize the Tehran government and a violation of international law.
Iran took its claim to the world court in 2016 after the U.S. Supreme Court ruled that money belonging to Iran’s central bank could be used as compensation for the 241 American troops who died in the 1983 bombing, which was believed to be linked to Tehran.