The UK government has settled a £1.25 billion (Dh5.75 billion) legal claim with a Tehran bank partly owned by the Iranian regime.
A five-week trial had been set to begin in a London court on Monday, in a case that has gone on for a decade. The two sides reached a confidential compromise on the same day.
In 2009 the UK government banned British companies from doing business with Bank Mellat because it was thought to be used to fund Iran’s nuclear weapons programme.
But the UK supreme court ruled in 2013 that the sanctions were unlawful – a decree supported by the European Union in court the same year.
Bank Mellat said the UK government’s actions “substantially damaged the bank’s reputation”.
It is 20 per cent owned by the Iran
The Mail on Sunday had reported that the government was considering settlement talks, fearful of an expensive and embarrassing court case.
A treasury spokesperson said: “Bank Mellat’s claims have been concluded on terms confidential to the parties.”
