EU COURT: EU COMPANIES CAN SCRAP IRAN DEALS IF US SANCTIONS’ COSTS TOO HIGH

On 21 December, WHTC reported that European companies can end contracts with Iranian businesses pressured by US sanctions if upholding the deals would lead to “disproportionate economic loss”,  This comes from a judgment from the European Court of Justice whichwas prompted by a lawsuit from the German branch of Iran’s state-owned Bank Melli against Deutsche Telekom after the telecommunications provider terminated a contract with the bank in 2018 prior to its expiry.  It is now up to court in Hamburg to decide whether upholding the contract with Bank Melli would expose Deutsche Telekom, which makes about half of its turnover with its US business, to such a disproportionate economic loss.

https://whtc.com/2021/12/21/eu-firms-can-scrap-iran-deals-if-u-s-sanctions-costs-too-high-eu-top-court-says/

https://curia.europa.eu/jcms/upload/docs/application/pdf/2021-12/cp210227en.pdf

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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