EIH Bank 311.
(photo credit: REUTERS)
BERLIN – The Hamburg-based bank Europäisch- Iranische Handelsbank (EIH) defiantly
announced on its website that it will not have to “discontinue its
RELATED:Analysis: Why did Germany capitulate?The Financial Times
According to a report in the German-language edition of the
Financial Times on Thursday, EIH will mount a legal challenge to the European
Union decision to sanction its operations because of its involvement in Iran’s
said it was the first
instance of a EU-sanctioned institution seeking to invoke EU-legal measures to
prevent its closure.
Harald Hohmann, a German- export lawyer representing
EIH, told the paper that the proof does not meet the standards of closure, and
he will litigate the matter before the European Court of Justice in
Last Monday, the EU listed the EIH as a sanctioned entity, froze its accounts and prohibited the 27 EU member countries from engaging in financial transactions with the German-based bank. The EU explained that EIH conducted
business with other sanctioned Iran banks.
“As of October 2010, EIH was
continuing to act as a conduit for payments by sanctioned Iranian banks,
including Bank Mellat and Bank Saderat,” the EU statement read.
had snubbed its Western allies – France, Britain and the United States – who
went to great lengths since 2008 to convince the Merkel administration to
shutter EIH due to its role in financing Iran’s nuclear and missile
The US Treasury sanctioned EIH last summer because it serves as
a key financial hub for financial transactions in Europe that are linked to
Iran’s proliferation efforts, as well as to its military
Meanwhile, EIH said on its website that it “has always strictly
complied with the resolutions of the United Nations Security Council and EU