S Korea’s Daelim Cancels $2bn Deal with Iran

South Korea’s Daelim Industrial said on Friday that a contract worth 2.23 trillion Korean won ($2.08 billion) for a refinery project in Iran was canceled.

The order was canceled as the Isfahan Refinery Upgrading Project failed to procure financing because of economic sanctions imposed on Iran, Daelim said in a regulatory filing, Reuters reported.

The Korean firm the contract in 2016 to renovate and expand the refinery in central Iran.

It was supposed to work on a series of projects in the refinery, from facility design to construction and financing, over a span of four years.

Daelim Industrial has been an active company in Iran’s construction business sector since South Korea established diplomatic relations with Iran in 1962. Starting with an engineering project for military use in May 1975, the company has carried out 26 construction projects worth about $4.6 billion in Iran over the past four decades.

US President Donald Trump announced on May 8 that Washington was walking away from the nuclear agreement, which was reached between Iran and the five permanent members of the UN Security Council – the US, Britain, France, Russia and China – plus Germany.

Trump also said he would reinstate US nuclear sanctions on Iran and impose “the highest level” of economic bans on the Islamic Republic.

(Source: Tasnim, under Creative Commons licence)

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