In the case of Ministry of Defence and Support for Armed Forces
of the Islamic Republic of Iran v International Military Services
Ltd [2019] EWHC 1994 (Comm), the High Court examined in detail the
effect of the EU sanctions regime against Iran in the context of
the enforcement of arbitral awards.
The High Court found that EU sanctions precluded Iran's
Ministry of Defence ("MODSAF") from enforcing the
interest element of an ICC award against International Military
Services Limited, a UK state-owned supplier of military vehicles
("IMS"), which would have accrued during the period
MODSAF has been subject to EU sanctions. The judgment provides
insight into the approach of the English courts in interpreting
sanctions regimes and suggests that English courts may be
sympathetic under certain circumstances to the argument that
obligations owed to EU sanctioned entities should be suspended
while sanctions remain in place.
