Iran sues UK's MoD for non-delivery of tanks: Report
Iran Press TV
Sun Feb 2, 2014 3:58PM GMT
Iran is taking legal action against a British Ministry of Defence company for the non-delivery of military vehicles purchased more than three decades ago, a British paper reports.
According to a report by The Independent, Tehran is pushing for £400 million (USD 657 million) in compensation in the UK High Court.
The dispute goes back to 35 years ago when the deposed Shah of Iran paid the International Military Services (IMS) £650 million (USD one billion) for 1,750 Chieftain battle tanks and repair vehicles.
Following the 1979 Islamic Revolution, however, the delivery of the vehicles was stopped.
In an arbitration concluded in 2009, the International Chamber of Commerce sided with Iran.
An MoD spokesman cited the financial restrictions by the European Union (EU) against Tehran as the reason for withholding payments to Iran, adding that the sum "could be released only if sanctions are lifted."
"Settlement negotiations between International Military Services Ltd" and Tehran "are ongoing and no agreement has yet been reached," the unnamed spokesman was quoted by the British paper as saying.
On January 20, the EU Council suspended part of its sanctions against Iran according to the Geneva nuclear deal between Tehran and the six world powers (the United States, France, Britain, Russia, China and Germany), which was signed last November.
KA/HMV/SL
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