According to reports in The Independent on Sunday and The Independent, the Iranian government is suing International Military Services Ltd (“IMS”), a company owned by the Ministry of Defence (“MoD”), in England in a dispute that centres on the order of 1,750 tanks and support vehicles by the Shah of Iran prior to the Iranian revolution in 1979. Tehran made an upfront payment of the total order amount -some £650 million- but had only received 185 vehicles by the time the regime was toppled. No funds were ever returned to Iran by IMS.
The parties were said to have reached a settlement in 2010, but the apparent recent commencement of the legal action suggests that this was not the case.
The Independent on Sunday quoted an MoD spokesman as saying: “No money will [be] paid to Iran while EU sanctions remain in place. Settlement negotiations between International Military Services Ltd and the Iranian regime are ongoing and no agreement has yet been reached.”