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A European Union court Wednesday ordered the removal of Hamas from the European Union's list of terrorist organizations, based on a procedural technicality, a ruling that provoked anger from Israel as well as satisfaction from the militant Palestinian movement.

A statement from the General Court of the European Union said it annuls the measures maintaining Hamas on the European list of terrorist organizations. However, the court said assets seized from Hamas would continue to be frozen pending an appeal.

The court ruling coincided with another blow to Israeli policy. The Palestinian leadership submitted a draft resolution to the U.N. Security Council via allied Jordan that would call for a Palestinian state and force Israel to withdraw from the West Bank within two years.

Israeli officials have been pressuring the United States to wield its veto power at the Security Council should the draft be brought up for a vote. Palestinian leaders have vowed to proceed with the showdown, encouraged by recent votes in several European states in support of a deadline for Palestinian statehood unless idle peace talks come to fruition.

It was unclear when the draft might come up for a vote, but the United States was expected to use its veto power to block it.

U.S. Secretary of State John F. Kerry recently held separate discussions with Israeli and Palestinian officials in efforts to stave off a crisis over the resolution.

Palestinian Authority Foreign Minister Riad Malki told Palestinian radio Wednesday that no agreement was reached.

According to Malki, the draft is based on a French proposal and will address all the problems that existed over the past 20 years of negotiations.

Israel firmly rejects the move. After meeting with Kerry in Rome on Monday, Israeli Prime Minister Benjamin Netanyahu said Palestinian and European attempts to force conditions on Israel will only lead to a deterioration in the regional situation and will endanger Israel.

Also Wednesday, the European Parliament passed a resolution to support Palestinian statehood in principle. Reiterating its support for the two-state solution, the resolution called for the advance of peace talks.

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Palestinians get backing from EU court ruling, proposed U.N. measure

Brussels: A European Union court on Wednesday ordered the Palestinian group Hamas removed from the EU terrorist list for procedural reasons, but says the bloc can maintain asset freezes against Hamas members for now.

The Islamic militant group, which calls for the destruction of Israel, hailed the decision. Israeli Prime Minister Benjamin Netanyahu urged the EU to reverse it.

Hamas was put on the EU terrorist list as part of broader measures to fight terrorism in the wake of the Sept. 11, 2001 attacks. It won elections in 2006 and runs Gaza, and has long contested the classification.

The court insisted that its ruling did not "imply any substantive assessment of the question of the classification of Hamas as a terrorist group." It therefore ruled that the asset freezes should stay in place for three months pending further EU actions.

The EU is considering its next steps. It has two months to appeal.

The terrorist list designation bars EU officials from dealing with the group, and requires that any of the group's funds in EU countries be frozen.

The decision comes amid growing pressure from European legislators to recognize a Palestinian state, after years of stalemate in peace talks. There was also growing frustration in Europe with Israel's government after the Gaza war earlier this year.

Salah Bardawil, a Hamas official in Gaza, called the decision a "strong, good shift" that he said would ultimately lead to European action against Israel.

Netanyahu said Hamas is "a murderous terror organization" and called for Hamas to be immediately returned to the list.

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European Union Court Takes Hamas Off Terrorist List

European Union leaders willdiscuss Russia's currency crisis on Thursday amid worries itcould impact their own economies, but they will not relaxsanctions imposed against Moscow over Ukraine, diplomats said.

On the contrary, the EU plans this week to widen a ban oninvestment in Crimea to target Russian Black Sea oil and gasexploration and the tourism sector. Moscow annexed Crimea fromUkraine in March.

The EU leaders are due to discuss Ukraine and Russia at asummit dinner in Brussels after talks about the EU economy,including a plan to foster investment.

Russia's financial crisis, a result of plunging oil pricesand exacerbated by Western sanctions, will form part of abroader discussion of EU-Russia relations, officials said.

"We are all watching the economic developments in Russiawith concern," a European Commission official said in Berlin."No one has an interest in Russia falling into a deep depression."

However, leaders will agree that the EU "will stay thecourse" on sanctions and that they are ready to take furthersteps if necessary to promote a political solution in easternUkraine, according to a draft statement seen by Reuters.Pro-Russian separatists are battling Kiev's forces in the east.

EU leaders will also say they are ready to offer furtherfinancial support for Ukraine, provided it carries out reforms.

The International Monetary Fund estimates Ukraine needsanother $15 billion but the EU has only limited capacity tohelp, a top EU official said.

Russia has responded to the EU and US sanctions againstits finance, defence and energy sectors by banning most Westernfood imports. EU farmers and some other sectors have been hurt.

"The cost to EU citizens of both the Russian steps and thewider economic fallout is obviously a consideration, but itisn't one that has reached a tipping point yet which isencouraging people to revise the sanctions policy," one diplomatsaid, speaking on condition of anonymity.

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European Union will keep up pressure on Russia despite concerns over economy

Erdogan answers to EU criticism over Turkey arrests
Turkish President Recep Tayyip Erdogan Monday launched a stinging attack on the European Union over its criticism of police raids on opposition media, bluntly telling Brussels to "mind its...

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European Union Backs U.N. Plan for Syrian Truce
European Union foreign ministers threw their weight behind a U.N. plan for a truce in the northern Syrian city of Aleppo on Monday, saying it offered a glimmer of hope for a political solution...

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