The UN’s highest court on Thursday rejected Iran’s request to release nearly $2 billion in assets belonging to its central bank, frozen by the United States in retaliation for alleged terror attacks.
The International Court of Justice (ICJ), which sits in The Hague, ruled that it had no jurisdiction over the request.
The Court nevertheless held that Washington had “raped” the rights of Iranian companies and nationals whose assets have also been frozen.
Washington and Tehran each claimed victory following the ICJ’s decision was announced.
That “shows once once more the legitimacy of the claims of the Islamic Republic of Iran and the illegal behavior of the United States”the Iranian Foreign Ministry said in a statement.
“This is a major victory for the United States and the victims of Iranian state-sponsored terrorism.”said Rich Visek, acting legal adviser to the US State Department, present at the hearing in The Hague.
American justice declared in 2016 that the funds seized were to be used to compensate Americans who were victims, according to it, of terrorist attacks fomented or supported by the Islamist Republic.
Washington notably mentioned the death of 241 American soldiers killed on October 23, 1983 in two suicide attacks which had struck the American and French contingents of the Multinational Security Force in Beirut.
Tehran denies any responsibility for these actions and argues that the US seizure of its financial assets is illegal.
Tehran and Washington have two years to agree
“The court, by ten votes to five, upholds the jurisdictional objection raised by the United States of America”said ICJ Judge Kirill Gevorgian.
Iran initiated the procedure in 2016, believing that the blocked funds were crucial for the country, which faced economic difficulties following sanctions imposed by the West because of its nuclear program.
Iran was seeking the return of $1.75 billion belonging to the Iranian Central Bank, or Bank Markazi, plus interest, plus assets belonging to Iranian nationals and companies.
But the ICJ ruled that Iran’s central bank did not count as a business, contrary to what Tehran argued, and that only businesses were protected.
However, the Court held that “l’Iran to[vait] right to compensation for the damage caused”she said.
The court gave the two countries 24 months to agree on compensation for affected businesses and individuals.
Its judgments are binding and cannot be appealed, but the court has no means of enforcing them. Countries can, however, turn to the UN Security Council if another state does not obey a decision.
The judgment comes amid renewed tensions between the two countries following recent US airstrikes that targeted pro-Iranian groups in Syria and Tehran’s support for the Russian invasion of Ukraine.
The ICJ was created following World War II to adjudicate disputes between UN member states.
