Iran’s Bank Mellat intends to file a legal claim for 500 million pounds ($782 million) against the British government for loss of business between 2009 and 2013 when the British government shut the bank out of Britain.
On June 19, the British Supreme Court ruled that the UK government was wrong to have imposed sanctions on the Iranian bank in 2009, and that the Treasury directive imposing sanctions was “irrational” and “disproportionate.”
The court said the UK government had failed to provide solid evidence that Bank Mellat had aided Iran’s nuclear program—evidence the court said was necessary to justify the sanctions.
Later this month, the court is expected to order the Treasury to pay the Iranian bank legal costs and to start discussions over compensation and damages. Bank Mellat said it would ask for 500 million pounds.
Bank Mellat’s success has paved the way for similar actions from scores of other Iranian banks and oil companies. That exposes Britain to a possible compensation bill in the billions of pounds.