Sasol reviewing Iran dealings due to sanctions 'risk'

12th October 2011, Comments 0 comments

South African petrochemical giant Sasol is reviewing its dealings in Iran, citing the risk of international sanctions on the firm, according to documents seen Wednesday by AFP.

"There is a possible risk that sanctions may be imposed on Sasol by the US government, the European Union and the United Nations as a result of our existing chemicals investments in Iran, should current legislation be changed," the company told the US Securities and Exchange Commission in a document dated October 7.

Sasol formed Arya Sasol Polymer Company in 2003 in a joint venture with Iran's national petrochemical producer. The company built a polymer factory which can produce a million tonnes of ethylene annually.

Though operations started to break even in 2009, the company is hesitant to develop further in the Islamic Republic.

"We have initiated a review of our activities in and with Iran. We do not currently intend to expand such activities," the document stated.

The United States introduced sanctions in 1996 to keep Iran from supporting international terrorism or buy weapons of mass destruction. The sanctions were increased several times afterwards.

Sasol made profits of 19.7 billion rands ($2.5 billion, 1.9 billion euros) on sales of 142 billion rands for its financial year to June 2011.

© 2011 AFP

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