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Iranian sanctions annulled in a further reversal for the EU Council

06/09/13

In another judgment from the General Court concerning the EU's programme of targeted sanctions against Iranian proliferation, the Court has annulled EU provisions imposing restrictive measures on Good Luck Shipping LLC, a shipping agency based in Dubai. That company had been included on the list on the basis of an allegation that it acted on behalf of the Islamic Republic of Iran Shipping Lines (IRISL) and two other designated entities.

The Court held that it was wrong for the Council to have included Good Luck Shipping on the list. The reason given by the Council for doing so was that it acted on behalf of IRISL. The Court found that the Council had not provided any evidence to substantiate those allegations, and would not permit the Council to rely on additional unsubstantiated material read out from the internet at the oral hearing, without notice to the Court or the applicant. The only evidence provided by the Council further to specific requests from the applicant were proposals from two Member States requesting that Good Luck Shipping LLC be sanctioned, and reports of meetings of a Council working group and a note to Coreper which did not contain details or evidence relating to the applicant. The Court noted that in the course of proceedings, the Council had relied only on "unsubstantiated general statements" for the purpose of trying to rebut the applicant's submissions. The EU provisions imposing restrictions on Good Luck Shipping LLC were accordingly annulled and the Council was ordered to pay the applicant's costs.

Fergus Randolph QC and Maya Lester were instructed by M Taher & Co to act on behalf of Good Luck Shipping LLC.