Case T-497/10 - Sanctions imposed on head of Iranian bank lifted after 2 year wait

03/08/12

In July 2010, the EU Council imposed an asset freeze and travel ban on Dr Ali Divandari, the then Chairman and head of the Iranian bank, Bank Mellat under the rubric of the EU's sanctions intended to put pressure on the Islamic Republic of Iran to end its nuclear programme. Bank Mellat is itself subject to EU sanctions on the basis of allegation which it strongly denies, that it supports and facilitates Iran's nuclear and ballistic missile programmes.

The claimant, an Iranian academic seconded to Bank Mellat, launched proceedings before the General Court applying for the annulment of his designation on the basis that he himself provided no support for Iranian proliferation, that the Council lacked the power to designate him as a mere employee of Bank Mellat and that his designation was disproportionate or irrational.

The claim was joined with Bank Mellat's challenge to its own designation (Case T-496/10) and an oral hearing took place before the General Court on 23 May 2012. Following the closing of the written and oral procedure, the Council on 2 August 2012 decided to lift the restrictive measures imposed on the claimant some two years after they were imposed, and without waiting for the General Court's judgment. On 2 August, the Council for this purpose passed Council Implementing Regulation (EU) No 709/2012 implementing Regulation (EU) No 267/2012 concerning restrictive measures against Iran. The claimant as a result joined the very small list of individuals and entities who have had the sanctions against them lifted.

The judgment is here.