Court dismisses British debt to Tehran dating back to the 1970s

The deal included selling Iran 1,700 tanks and armored vehicles for 650 million pounds.

By OMRI RON
October 10, 2019 03:56
1 minute read.
European Union and British flags flutter in front of a chancellery ahead of a visit of British Prime

European Union and British flags flutter in front of a chancellery ahead of a visit of British Prime Minister Theresa May in Berlin, Germany, April 9, 2019. . (photo credit: REUTERS/HANNIBAL HANSCHKE)

A High Court judge in London has dismissed an approximately $25 million claim from Tehran for interest on the historic debt Britain owes the republic, according to a report by Radio Farda.

The debt goes back to the 1970s and is based on a deal between the Royal Iraninan Defense Ministry and the International Military Services (I.M.S), a part of Britain's Ministry of Defense.

The deal included selling Iran 1,700 tanks and armored vehicles for 650 million pounds. While some of the equipment was transferred,  the Islamic revolution took place not long after the deal was struck. The new regime cancelled the deal. However, since the country had already paid for for vehicles it did not receive, Iran wanted its money back, plus whatever interest it had incurred already.

The U.K. courts do have access to the account with the money owned by the company that originally made the deal,  according to Radio Farda. Moreover, the decision was made that the money could not be transferred either way, given the current sanctions against the Islamic republic.

Responding to the news concerning the dismissal of Iran's claim to receive interests, Tehran's ambassador to London, Hamid Baeidinejad, insisted in a tweet that "the U.K. court had not ruled against Iran, contrary to what the BBC had reported, and that the case had been sent to a court of appeal."


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