Hyundai E&C axes $521m Iranian petrochemicals deal

Hyundai E&C axes $521m Iranian petrochemicals deal

Hyundai Engineering & Construction on Monday said that it cancelled a ₩595 billion ($521 million) deal to build a petrochemicals complex in Iran.

It said the Iranian customer’s ability to fund it had been hit by the prospect of U.S. economic sanctions against Tehran.

In a regulatory filing, Hyundai E&C said the consortium it led for the project’s construction cancelled the contract on Sunday.

“The contract was cancelled because financing is not complete, which was a prerequisite for the validity of the contract, as external factors worsened such as economic sanctions against Iran,” Hyundai E&C said in its filing.

From Nov. 4, the United States will re-impose sanctions against Iranian crude oil exports as part of President Donald Trump’s efforts to force Tehran to accede to a more restrictive deal on limiting its nuclear and missile programmes.