November 22-2013
The European Union has decided to re-impose asset freezes annulled earlier this year by court order on several Iranian banks and companies.
EU diplomats told Reuters the move was to re-establish sanctions already imposed, rather than add new sanctions pressure on Iran.
President Obama has called on the US Congress not to impose new sanctions on Iran while the talks are underway, and the EU shares that concern that new sanctions could prompt Iran to back out of the talks.
The EU decision, taken by senior officials last Thursday, must still be approved by EU governments in the coming days, diplomats told Reuters. It covers Persia International Bank, Export Development Bank of Iran and Bank Refah Karagan, among others.
The decision aims to counter mounting litigation by hundreds of people and companies from Iran after several legal challenges succeeded in quashing sanctions this year.
The sanctions have not actually been lifted because the court allowed them to stay in place while the EU appealed to the continent’s highest court.
It is the first time the EU has sought to address legal challenges by re-imposing sanctions instead of trying to win appeals, and reflects growing concern that sanctions are difficult to defend in court because presenting evidence in court could expose intelligence sources.
In striking down the earlier sanctions, Europe’s second-highest court has said EU governments failed to provide sufficient evidence to link targeted companies with Tehran’s nuclear work.
