Bank Mellat seeking $4bn in compensation from UK Treasury

February 17, 2014 1:45 am

Bank Mellat, Iran’s largest private bank has filed a lawsuit against the UK Treasury seeking $3.98bn in reparations for lost international businesses due to sanctions against Iran, the Wall Street Journal has reported. The claim follows a June 2013 ruling by Britain’s highest court that found sanctions imposed on the bank by the UK government in 2009 were illegal because Bank Mellat isn’t a state-owned financial institution, and there wasn’t evidence it aided Iran’s nuclear programme. It also comes after a string of shipping companies and banks, including Mellat, won legal challenges contesting sanctions in a European court last year. The European Union has either appealed or placed the entities affected by the court action under new sanctions.