EU court strikes down Iran nuclear sanctions

(LUXEMBOURG) - One of the European Union's top courts annulled Friday an EU asset freeze imposed on seven Iranian banks and other companies for their alleged involvement in the country's contested nuclear programme.

The European Tribunal, second only to the European Court of Justice, said the EU had variously failed to prove or properly consider the evidence when imposing sanctions.

But it said its action would not have immediate effect and the sanctions will remain in place for two months and 10 days pending an EU appeal against its findings.

During this period, the EU can also adjust its case and formulate new sanctions, a statement added.

At the same time, the Tribunal ruled in favour of the EU in a case over sanctions imposed in December 2011 on Europaische-Iranische Handelsbank.

The Tribunal meanwhile rejected an appeal by Bank Melli Iran against its sanctions, agreeing with the EU that its role in funding research by Iran's atomic energy organisation constituted support for Tehran's nuclear ambitions.

Iran insists its nuclear programme is for peaceful purposes only but the West, led by the United States, suspects it is meant to produce atomic weapons.

Accordingly, the United States, EU and the UN Security Council have imposed a series of sanctions on Iran which have begun to hit the economy hard.