World Court Rejects Tehran’s Bid To Free Assets Frozen In US
The International Court of Justice (ICE) on Thursday rejected Tehran’s legal bid to free up $1.75 billion of the Islamic Republic’s assets frozen by US court rulings.
The International Court of Justice (ICE) on Thursday rejected Tehran’s legal bid to free up $1.75 billion of the Islamic Republic’s assets frozen by US court rulings.
In a 10-5 majority decision, judges said the UN International Court of Justice did not have jurisdiction to rule on the Iranian claim linked to the assets of the Central Bank of Iran (CBI) that were blocked to be paid in compensation to victims of a 1983 bombing in Lebanon and other attacks linked to the Islamic Republic. The CBI’s frozen assets of $1.75 billion in bonds, plus accumulated interest, are held in a Citibank account in New York.
The court found that the US move to seize assets of Iran and Iranians in the United States breached a treaty between the countries, signed in 1955, about 24 years before the establishment of the Islamic Republic. However, it ruled that it did not have jurisdiction based on the 1955 Treaty of Amity in the case of CBI’s funds because it is not a commercial enterprise, and thus not protected by the treaty.
The ICE judges accepted American lawyers’ contentions that the frozen central bank assets were state holdings not covered by the treaty, but ruled that assets belonging to non-government, commercial entities should be protected.
Iran argues the asset freeze was a breach of the 1955 Treaty of Amity, which promised friendship and cooperation between the two countries, even though the US and Iran have had no diplomatic relations since militant students took over the US Embassy in Tehran in 1979. Moreover, Washington terminated the Treaty of Amity in 2018 in response to an order by the International Court of Justice in a separate case to lift some sanctions against the Islamic Republic. Nonetheless, the ICE ruled that the treaty was in place at the time of the freezing of the assets of Iranian commercial companies and entities.
In its 67-page judgment on Thursday, the court also ruled that Washington had illegally allowed courts to freeze assets of some Iranian companies and ordered Washington to pay compensation, the amount of which should be negotiated between the countries. If they fail to reach a number, they will have to return to the Hague-based court for a ruling.
"The court has concluded the United States violated its obligations under (...) the treaty of amity," presiding judge Krill Georgian said. He added that Iran was entitled to compensation and the parties had 24 months to agree on a figure and if that did not work, the court would start new proceedings to determine the amount to be paid.
The court’s judgments are final and legally binding but the United Nations' top court has no means of enforcing them.
At hearings in September 2022, the Islamic Republic called the asset freeze an attempt to destabilize the Islamic Republic and a violation of international law. Tehran took its claim to the world court in 2016 after the US Supreme Court ruled that money belonging to Iran’s central bank could be used as compensation for the 241 American troops who died in the 1983 bombing. After the bombing of the US military base in Lebanon, a second blast nearby killed 58 French soldiers. Tehran has denied involvement, but a US District Court judge found Tehran responsible in 2003. The judge’s ruling said Iran’s ambassador to Syria at the time called “a member of the Iranian Revolutionary Guard – IRGC -- and instructed him to instigate the Marine barracks bombing.”
Acting Legal Adviser Rich Vise of the US State Department said in a written statement that the ruling rejected the "vast majority of Iran's case," notably where it concerned the assets of the central bank, adding that "This is a major victory for the United States and victims of Iran’s state-sponsored terrorism."
Iran's foreign ministry also reacted to the Thursday ruling, hailing the decision as "highlighting the legitimacy" of its positions and "expressing the wrongful behavior of the United States".
Tehran’s talks with world powers to revive the 2015 nuclear deal – officially known as the Joint Comprehensive Plan of Action (JCPOA) -- was going on with some vague prospects of success but ultimately collapsed after Russia invaded Ukraine. Russia was an active player in the talks from April 2021 to February 2022, when it invaded Ukraine. The negotiations in Vienna ended in early March. Some Iranian observers suggest that the West is not likely to respond to Iran's renewed calls for nuclear talks unless Tehran stops supplying weapons to Moscow in its war.
Millions of Iranians circumnavigate internet restrictions imposed by the government by purchasing VPNs or downloading them from the internet on their phones and computers. Those that are for free often do not work, but quite often the paid VPNs also fail to work as the authorities continuously identify and block them. Such restrictions have hugely increased since anti-government protests that ensued after the death of the 22-year-old Mahsa Amini in ‘morality police’ custody in late September.
DATA.AI’s map application rankings and store data indicate that five of the top applications used by Iranians and downloaded from Google Play belong to the VPN category with the rest consisting of communications and social media applications including WhatsApp, Telegram, Instagram, Twitter and YouTube all of which are blocked.
Google also said in October there was a spike in demand from Iran for its Jigsaw subsidiary's open-source Outline tool which allows third parties to set up secure VPNs resistant to disruption and censorship efforts.
Currently Google Play, where users could download VPNs, and occasionally Google Maps, Google Chat and Google Meet also become unavailable depending on the type of VPN one has installed on their devices.
“Only with a proxy [server] and with difficulty I can open my Telegram to download configurations that let me open Instagram and WhatsApp. I need another anti-filtering software for Twitter and heavy applications that have to be downloaded from Google Play which is also blocked,” a twitter user wrote Tuesday, and damned the Islamic Republic for making online access so difficult.
This viral video on Instagram shows a monkey hitting his phone angrily and swearing for not being able to connect to any of the “100s of VPNs” installed on the phone
"Daily demand for virtual private network (VPN) services in Iran is up over 3,000% compared to before the protests," Simon Migliano, the head of research at Top10VPN, told Axios in October.
Government restrictions were meant to stop people from sharing news and images of the protests that could motivate a larger segment of the population to join in. There are much fewer protests now, but the use of VPNs appears to have continued to grow as the government keeps its hold on the flow of information.
In January, the judiciary and the ministry of communications said they would take legal action against "unauthorized” providers of VPNs and internet circumvention tools.
By blocking access to applications such as WhatsApp and VPNs that make access to them possible, authorities are trying to force Iranians to use domestically-developed applications such as Soroush, Eitta, and Bale but many Iranians do not trust these applications which they say the government can control and use for spying on them.
Many VPNs are not safe, either. In January, Bitdefender, a private cybersecurity company, revealed information about an Iranian spyware that stole users’ sensitive information through a VPN software.
Extensive filtering has highly damaged internet-based businesses and around 10 million whose livelihoods depends on selling their products and services by advertising on social media. Small businesses, particularly those run from homes by women or small farms in rural areas whose numbers exponentially grew after the Covid pandemic, very heavily relied on Instagram for advertising and WhatsApp for communication with potential customers.
Officials, including Supreme Leader Ali Khamenei, have repeatedly criticized free access to the internet in recent years, and have been trying to prevent the free flow of information by expanding the National Information Network (NIN), a national intranet.
Of 83 attacks in Iraq and Syria since President Joe Biden took office, just four retaliations have taken place. Last week, two attacks targeted bases in Syria killing one American contractor and injuring several servicemen.
Senator Tom Cotton, addressing the United States Secretary of Defense, Lloyd Austin, said, “What kind of signal do we think this sends to Iran when they can attack us 83 times since Joe Biden has become president and we only respond four?”
The weak US approach to Iran has been a thorn in Biden’s side as the Democrats try to keep channels open with Tehran in the hope of reviving the nuclear deal, the JCPOA. Long-running talks to restore mutual compliance with the accord broke down last year after Iranian intransigence.
Senators voiced similar criticism in another hearing on Monday.
“Maybe it's because they [Iran] know that we will not retaliate until they kill an American, which emboldens them to keep launching these attacks which kill Americans,” Cotton added.
His sentiments were echoed by Senator Jacky Rosen, who asserted that Iran’s militias are the “most pervasive threat to US and coalition forces in the region”. The Trump administration designated Iran’s Revolutionary Guards Corps (IRGC) a terrorist organization in 2019.
Austin defended the strategy, claiming that US troops — of whom there are around 900 based in Syria to keep pressure on the remnants of the Islamic State group and support the Kurdish-led Syrian Democratic Forces, which control most of the north-east — have the ability to protect themselves.
He added that lower profile local responses have been carried out which are not always made public like the four more high profile attacks, over the years, the forces having been subjected to many attacks from Iranian militias.
In tones which reflect the softly approach of the Biden administration, he stressed that responses are measured to ensure they are taken against the correct elements responsible, saying it “takes a little time to develop attribution”. He added that the Department of Defense is “doing everything that we can to protect our troops”.
The news about last week's attack did not get sent to congress for almost 24 hours, meanwhile, the issue of Iran was being debated for key policy decisions at the same time.
The attack occurred the same day that senators voted down an amendment from Sen. Marco Rubio which would have required President Biden's administration to prove that Iran was no longer providing support to proxy groups.
The delayed communication created outrage among senators who said such vital information should have been relayed immediately, allowing a better informed decision to be made. While Austin insisted the information was relayed as soon as possible, his attempts to appease congress fell on deaf ears.
“I don't believe you,” slammed Senator Cotton. “I believe that your office specifically withheld notification of this deadly strike against Americans because of the Rubio amendment on which we voted at midday directly touched on exactly this scenario, not repealing the use of force resolutions,” suggesting that the information was withheld because “the President couldn't certify that Iran was no longer attacking us in Iran and Syria”.
Lloyd denied the allegation, claiming it was “absolutely not true”, but it failed to change the anger felt by senators on the silence. "Maybe you didn't personally do it, but I believe entirely that people in your office did that,” added Cotton. Feeling the heat, Austin tried to say the delay was due to the speed with which the attack was carried out and the response put into place, apologizing, with the assurance that “we will do everything in our power to improve our performance”.
General Mark Milley, speaking at his last ever senate testimony serving as the 20th Chairman of the Joint Chiefs of Staff, assured senators when asked what is being done to proactively deter the ongoing attacks on US facilities.
While Austin had said Quds Force infrastructure was being targeted, Milley said the Department of Defense owes congress “better numbers”, the local and more low-key attacks if known, adding a better picture of the response being taken in addition to breaking down the 83 attacks from Iran’s proxies into more realistic numbers of those hitting US facilities and those landing two to three kilometers away.
“Working with our indigenous allies and partners is key,” he said and “messaging Iran is critically important”. The Quds Force and IRGC is the US’s main target, Milley added, vowing “very harsh” action now and in the future.