ICJ rules US illegally froze Iranian assets, orders to pay compensation
- In Reports
- 01:18 PM, Mar 31, 2023
- Myind Staff
In a major verdict partially favouring Iran, judges at the International Court of Justice (ICJ) have ruled Washington had illegally allowed courts to freeze the assets of Iranian companies and ordered the United States to pay compensation, the amount of which will be determined later.
In a blow for Tehran, the World Court said during Thursday's ruling that it did not have jurisdiction over $1.75 billion in frozen assets from Iran's central bank, by far the largest amount claimed back by Iran, Reuters reported.
The case before the ICJ, also known as the World Court, was initially brought by Tehran against Washington in 2016 for allegedly breaching a 1955 friendship treaty by allowing US courts to freeze the assets of Iranian companies.
The money was to be given in compensation to victims of terrorist attacks.
According to the Reuters report, in hearings last year, the US argued the whole case should be dismissed because Iran has "unclean hands" and the asset seizures were the result of Tehran's alleged sponsoring of terrorism.
However, the court dismissed this defence entirely and ruled the treaty was valid.
The 1950s friendship treaty was signed long before Iran's 1979 Islamic Revolution, which toppled the US-backed Shah, severing US-Iranian relations.
Notably, Washington finally withdrew from the treaty in 2018.
The ICJ ruled that as it was in place at the time of the freezing of the assets of Iranian commercial companies and entities, Washington violated the treaty.
The judges explained the court had no jurisdiction over the $1.75 billion in assets from Iran's central bank held by the US because that bank was not a commercial enterprise and thus, not protected by the treaty.
It is pertinent to note that although the rulings of the ICJ are binding, it has no means of enforcing them. The United States and Iran are among a handful of countries to have disregarded its decisions in the past.
Image courtesy: AP
Comments