Four Malta-registered companies contest EU decision on Iran firm

Four Maltese registered shipping companies with direct connections to Iran have instituted legal proceedings to challenge EU sanctions against Iranian state-owned IRISL.

The companies took their case to the European Court of Justice in addition to cases opened by Iranian companies based in the UK, Germany, Singapore, South Korea and Iran.

The four Maltese companies involved are Busherer Shipping Company Ltd; IRISL Malta Ltd; ISI Maritime Ltd and Marble Shipping Ltd. The shareholding in all four is Iranian although in the case of IRISL Malta Ltd, a Maltese company based in Qormi, Maraner Holdings Ltd, is also listed as a shareholder. In this same company, a Maltese citizen, Adrian Baldacchino, whose address is registered in Qormi, acts as legal and judicial representative for the company.

According to the ECJ, the shipping companies are seeking the partial annulment of the EU Council’s decision to impose restrictive measures against Iran.

In their pleas, the companies involved are arguing the EU measures against them were adopted in violation of their right of defence and their right to effective judicial protection, among others.

The companies claim the EU Council has failed to provide sufficient reasons for their inclusion in the contested measures, in violation of its obligation to give a clear statement of actual and specific reasons justifying its decision, including the reasons that led it to consider the applicants provided support for nuclear proliferation.

Following months of deliberation, the 27 EU states last October decided to ban all cargo handling by the Islamic Republic of Iran Shipping Lines in EU territory as part of a new round of sanctions in response to Teheran’s nuclear programme.

Malta supported this decision even though the sanctions are expected to have a direct impact on business at Malta Freeport - IRISL traffic accounts to between five and 10 per cent of the turnover of trans-shipment cargo.

However, the sanctions will only affect new contracts entered with IRISL from last October as existing contracts with the company will not be impacted. This is expected to stagger the impact of the EU sanctions on the Freeport’s operations.