ICJ denies Iran release of US frozen central bank funds

Representatives of Iran (left) and the United States (right) stand in front of the International Court of Justice (ICJ) in The Hague, March 30, 2023 © Peter Dejong/AP

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The International Court of Justice (ICJ), the highest court of the UN, rejected this Thursday, March 30, 2023 Iran's request to release nearly $ 2 billion of assets belonging to its central bank. The latter were frozen by the United States in retaliation for alleged terrorist attacks.

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The International Court of Justice (ICJ), which sits in The Hague, ruled that it did not have jurisdiction over this request, but also ruled that Washington had "violated" the rights of Iranian companies and nationals whose assets were also frozen.

Both countries welcomed the verdict and claimed victory. It "once again shows the legitimacy of the Islamic Republic of Iran's claims and the illegal behavior of the United States," Iran's Foreign Ministry said in a statement. "This is a major victory for the United States and the victims of Iranian state-sponsored terrorism," said Rich Visek, acting legal adviser for the U.S. State Department, who attended the hearing in The Hague.

PRESS RELEASE: #CIJ delivers judgment on the merits of Certain Iranian Assets (#Iran v. #EtatsUnis) https://t.co/NHSNX43rFm pic.twitter.com/UcEfhYDexR

— CIJ_ICJ (@CIJ_ICJ) March 30, 2023

Iran was seeking the return of $1.75 billion belonging to Iran's Central Bank, or Bank Markazi, plus interest, plus assets belonging to Iranian nationals and companies. But the ICJ ruled that Iran's central bank did not count as a company, contrary to Tehran's claims, and that only companies were protected under the treaty.

Compensation for affected businesses and individuals

The court, however, found that Washington had "violated its obligations" under a decades-old U.S.-Iran treaty. "Iran is entitled to compensation for the harm caused," she said. In its petition, Iran invoked a bilateral treaty signed between Tehran and Washington in 1955, which predates the 1979 Islamic Revolution that overthrew the pro-US shah and led to the end of diplomatic relations between the two countries. Shortly after its withdrawal in 2018 from the Iran nuclear deal, Washington announced that it was officially ending the 1955 treaty.

The court gave the two countries 24 months to agree on compensation for affected companies and individuals. Its judgments are binding and without appeal, but the court has no way of enforcing them. Countries can, however, turn to the UN Security Council if another state does not obey a decision.

The US justice system said in 2016 that the seized funds should be used to compensate Americans who were victims, according to it, of terrorist attacks fomented or supported by the Islamic Republic. Washington referred in particular to the death of 241 American soldiers killed on October 23, 1983 in two suicide bombings that hit the American and French contingents of the Multinational Security Force in Beirut. Tehran denies any responsibility for these actions and maintains that the US seizure of its financial assets is illegal.

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The Court, by ten votes to five, upheld the objection of lack of jurisdiction raised by the United States of America " said ICJ Judge Kirill Gevorgian.

Iran initiated the procedure in 2016, saying the blocked funds were crucial for the country, which is facing economic difficulties after sanctions imposed by the West over its nuclear program.

► READ ALSO: Firm warning of Iran against any US attack on its positions in Syria

(

With AFP)

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