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South Korea's Hyundai E&C cancels $521 million petrochemicals deal, cites Iran financing failure

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Reuters SEOUL
SEOUL (Reuters) - South Korea's Hyundai Engineering & Construction said on Monday that it scrapped a 595 billion won ($521 million) deal to build a petrochemicals complex in Iran, saying 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.
($1 = 1,142.4000 won)
(Reporting by Ju-min Park and Heekyong Yang; Editing by Kenneth Maxwell)

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First Published: Oct 29 2018 | 1:32 PM IST

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