EU General Court Judgment in Case T-8/21 IFIC Holding v Commission

Wednesday 12th July 2023

General Court

Judgment in Case T-8/21 IFIC Holding v Commission

(Commercial policy)

In 2018, the United States of America withdrew from the Iran Nuclear Deal, signed in 2015 to control Iran’s nuclear programme and lift economic sanctions against Iran. As a result of this withdrawal, on the basis of the Iran Freedom and Counter-Proliferation Act of 2012, the United States once again imposed sanctions on Iran and a list of specific individuals. Since that date, all persons outside the United States have been prohibited from doing business with persons on the SDN list.

Following this decision, in order to protect its interests, the EU adopted Delegated Regulation 2018/1100 amending the Annex to Regulation 2271/96 to include a reference to the Iran Proliferation and Freedom Act of 2012. It also adopted Implementing Regulation 2018/1101 laying down criteria for the application of the second paragraph of Article 5 of Regulation No 2271/96.

IFIC Holding AG is a German company whose shares are indirectly held by the Iranian state and which itself holds stakes in various German companies, in respect of which it is entitled to dividends. Clearstream Banking AG is the only authorised securities depository bank in Germany. Following IFIC’s inclusion on the US SDN list in November 2018, Clearstream Banking AG suspended dividend payments to IFIC and blocked the dividends in a separate account.

On 28 April 2020, following a request for authorisation, within the meaning of the second paragraph of Article 5 of Regulation No 2271/96, from Clearstream Banking, the Commission adopted implementing decision C(2020) 2813 final, by which it authorised that bank to comply with certain US laws in relation to the applicant’s securities or funds, for a period of 12 months (hereinafter “the contested authorisation”).

That authorisation was subsequently renewed in 2021 and 2022 by implementing decisions C(2021) 3021 final and C(2022) 2775 final.

IFIC applied to the General Court for annulment of the decisions adopted by the Commission at the request of Clearstream Banking, which intervened in the proceedings.

Background Documents T-8/21