Malta companies in Iran blacklist in EU crosshairs again

Malta’s hosting of companies related to the Islamic Republic of Iran Shipping Lines (Irisl) will return to the spotlight as the European Union prepares to reinstate sanctions against 40 Iranian shipping companies.

In a bid to turn up the heat against Tehran over its nuclear programme, the EU’s prime ministers – through the EU Council – sent a letter to the shipping firms’ lawyer, Maryam Taher, claiming that the sanctions were down to the companies being owned or controlled by the blacklisted Irisl.

In 2010, Malta was at the centre of a network of shell companies that Irisl used to stash its vessels in a bid to circumvent international trading bans applied by the United States and the United Kingdom. At least 20 companies registered at various Maltese addresses had principals who were Irisl officials, and registered owners of ships that were owned by Irisl but were now operated by a private, Iranian company – the Hafiz Darya Shipping Lines (HDS).

Using HDS, Iran managed to change the ownership of Irisl’s container business after it was blacklisted over its alleged role in supplying Iran’s suspect nuclear weapons programme.

HDS became the ship manager of various Malta-flagged ships that previously belonged to Irisl, but which were transferred to shell companies, with their names changed from their Iranian appellations into English-sounding names. 

In October 2010, the US Department of the Treasury announced the designation of 37 front companies based in Germany, Malta, and Cyprus; while the European Council froze the funds and economic resources of Irisl’s interests in Malta, prohibiting the loading and unloading of cargo on vessels owned or chartered by Irisl at the Malta Freeport.

The sanctions were lifted this January when the EU General Court annulled the restrictive measures against an Iranian bank and 40 shipping companies whose assets had been frozen. The court said that companies linked to Irisl were not proven to have been involved in supporting nuclear proliferation.

But in letters dated 12 March, the Council said the reasons for the intended re-listings included the companies being owned or controlled by Irisl or for providing training, spare parts and services to Irisl or Irisl employees.

The shipping companies’ lawyer, Maryam Taher, who has represented the firm’s clients in the EU courts said, “Certainly the whole purpose of the EU sanctions is to leverage pressure on the Iranian government to come to an agreement in relation to nuclear proliferation, however, the EU Council continues to re-list our clients even though they have no connection to Iranian nuclear proliferation or indeed the Iranian government whatsoever. The continued listing/re-listing of our clients flies in the face of our system of justice and fair trial, which is disheartening to say the least.”

The 40 shipping companies involved in the case include Hamburg-based Ocean Capital Administration GmbH, Kerman Shipping Co. Ltd, and Woking Shipping Investments Ltd, established in Valletta, among others.

Taher said that the EU Council has only allowed a very short time for the provision of observations, simply because the EU Council wishes to make a decision whether to re-list within the appeal period of the judgment dated 22 January, 2015.

“For each of M Taher & Co’s successes in the EU courts, the EU Council has not appealed judgments, but simply re-listed the successful applicants and usually for the same reason and based on the same ‘evidence’ as they were listed in the first instance,” Taher said.