Iran shipping lines wins UK court ruling

Britain’s Royal Courts of Justice has ordered P&I Steamship Mutual Club to fulfill its insurance obligations and pay compensation to Iran’s shipping line.

Following the sanctions imposed by the UK Treasury against Iran, Steamship Mutual Club refused to fulfill its obligations and pay compensation for one of the vessels of the Islamic Republic of Iran’s Shipping Lines (IRISL).

Under the royal court’s ruling, Iranian cargo ship Zoorik, which sustained damage in the mouth of Yangteze River in China last year, can benefit from P&I Club insurance coverage.

The verdict comes as based on the UK sanctions, managers of P&I Club would have to pay a heavy fine and face long-term jail sentences if they pay compensation to the IRISL without the approval of the UK Treasury.

The court’s verdict states that the IRISL can benefit from insurance coverage until the end of its contract despite anti-Iran sanctions, IRINN reported.

In 2009, The UK ordered financial firms to stop all business with Bank Mellat and the IRISL.

The measure was taken over allegations that there is “significant risk to the UK’s national interest posed by activity in Iran that facilitates the development or production of nuclear weapons,” a Treasury statement said.

In June 2010, The UN Security Council adopted a fourth round of sanctions against Tehran under intense pressure from the US, which claims Iran’s nuclear program may have potential military aspects.

Iran says that as a member of the International Atomic Energy Agency and a signatory to the Nuclear Non-Proliferation Treaty, it has a right to use the peaceful applications of nuclear energy for electricity generation and medical research.