Iranian Bank Loses Bid for £78.7m in Damages from the EU over Sanctions Error

June 6, 2019

Author: 

Nicky Harley

Publication: 

The National

Related Country: 

  • United Kingdom

The General Court of the European Union dismissed Bank Saderat Iran's (BSI) appeal for £78.7 million in damages after the bank was placed on the EU sanctions list. The EU placed Bank Saderat Iran and its 28 international branches, including Bank Saderat PLC in London, on a list of entities tied to Iran's nuclear program in 2010, leading to the freezing of the bank's assets. The sanctions were removed in 2013 after the EU Council failed to disclose evidence supporting the allegation that the bank provided financial support to entities involved in transactions for Iran's nuclear and ballistic missile programs. The EU court determined that, contrary to the bank's appeal, the imposition of sanctions never constituted a "flagrant and inexcusable" violation of EU law.