World Court says the US illegally froze Iranian assets

 

The International Court of Justice (ICJ), also known as the World Court, ruled that Washington had illegally allowed courts to freeze the assets of Iranian companies. Consequently, the court ordered the United States to pay compensation to Iranian companies.

On Thursday, the United Nations’ top court, however, rejected Iran’s legal bid to free up some $2 billion in Iranian central bank assets frozen by a Citibank account in New York in the U.S.

Kirill Gevorgian, Vice-President of the International Court of Justice, said that the majority “upholds the objection to jurisdiction raised by the US relating to the claims of Iran” in regard to the bank.

Rich Visek, Acting Legal Adviser of the U.S. State Department, reportedly said, "This is a major victory for the US and victims of Iran’s state-sponsored terrorism.” Reportedly, the US froze $2 billion in Iranian central bank assets to pay in compensation to victims of a 1983 bombing in Lebanon.

On the other hand, Iran's foreign ministry claimed victory after the World court asked the United States to pay compensation to Iranian companies.

Iran brought the case to the World Court against the US in 2016. Iran accused the US of allegedly breaching a 1955 friendship treaty by allowing U.S. courts to freeze the assets of Iranian companies. However, the US said that the amount was to be given in compensation to victims of a 1983 bombing in Lebanon. The court said that the treaty was valid. The court said that Washington violated the treaty. However, the court said it did not have jurisdiction to rule on the Iranian claim linked to assets held by the US because Iran’s central bank, also known as the Bank Markazi, is not a commercial enterprise.

Vedant Patel, Principal Deputy Spokesperson at the U.S. Department of State, said, “We believe that the decision was a major blow to Iran’s case.”