European Union foreign ministers have decided to remove an Iranian opposition group from the EU's terror list.
Diplomats say the decision takes affect on Tuesday and ensures that the assets of the People's Mujahedeen Organization of Iran will be unfrozen.
The move is likely to lead to a further deterioration of EU ties with Iran, which wanted the group to remain blacklisted.
Monday's decision enacts several court rulings that said the EU had failed to prove the Iranian group was a terrorist outfit. It is the first time an organization has been "de-listed" by the EU.