Fin24

Sasol reviews Iran ops on sanction fears

2011-10-12 09:02

Johannesburg - Sasol [JSE:SOL], the world’s top maker of motor fuel from coal, said it is reviewing its investment in Iran, which is facing sanction over its nuclear programme, and has no plans for further growth in the country.

Sasol said in a filing to the US Securities and Exchange Commission last week there was a possible risk that sanctions may be imposed on the company by the United States, the European Union and the United Nations as a result of its investments in Iran.

“We have initiated a review of our activities in and with Iran. We do not currently intend to expand such activities,’ Sasol said in the filing seen by Reuters on the SEC website.

Sasol has a 50% stake in Arya Sasol Polymer company, a joint venture with Pars Petrochemical Company of Iran. The venture produces ethylene and polyethylene, which are used in the production of plastics.

The UN has imposed four sets of sanctions on Iran since December 2006 to step up pressure over its nuclear programme, which Tehran says is for peaceful purposes but the United States and its allies fear is aimed at producing nuclear weapons.

The United States and the EU have also imposed their own unilateral sanctions on Iran, seeking to target individuals and industries they believe are playing a role in furthering Iran’s nuclear ambitions.

Sasol said it continues to evaluate the risks and implications of the sanctions on its investments in Iran.

“However, we cannot assure you that as a result of these sanctions our activities in Iran would not be adversely impacted and that there would not be a material adverse impact on our business, operating results, cash flows and financial condition,” it said.

 

Comments
  • Monacoroyals - 2011-10-19 15:02

    Time for sasol to leave Iran. Iran is an oppressive regime that kills its own people in its struggle to stay in power, moreover the west doesn’t like them so it isn’t good for business and will not create Jobs for South Africa. Time to leave Iran until there is regime change.

      Save SA - 2011-12-02 03:43

      Really? So just because this won't create jobs for South Africans sasol must pull out? This is what I love about the media, Iran is a sovereign nation, The US, Russia, and Britain have tons of Nuclear weapons, britain just proposed to spend 2 bn pounds on a new nuclear weapons plant and they don't want Iran ro enrich uranium for energy? Even if Iran wanted to build nuclear weapons, what's the problem? They are a country, just like the US. The US is collapsing, the EU is gone, and Britain is on it's knees, you really think that coiuntries ike that should have nuclear power? Iran may be oppresive, but it's stable, it's no different from China. Grow up and actually open your eyes.

  • mmoledis - 2011-10-19 17:39

    Sasol should have left Iran long time ago, as Iran does not play according to the rules of the game and is a threat to the world by still using nuclear in a wrong way so they are a threat to the world as such,and that is why they are also not respecting human rights and when citizens demonstrate peacefully for their needs they are then harassed and locked up, so as that lawyer who was harassed and ended up running away from Iran as he could not do his job properly because the state forcing him to do things a wrong way and when he refused then be harassed so for that RSA should not do business with such countries.

  • Prontuit - 2011-10-20 08:52

    Nuclear Programme being a threat to the world? Sounds very much like Iraq's "weapons of mass destruction". If I were Iran I would have protected myself from the USA's imperiliasm in precisely the same way. The m.o. stays the same people: "Free the country from it's oppressors" with the tool called democracy (starting with riots) and in turn be rewarded with control over oil reserves. Wake up: The USA is a bigger threat to the world than Iran!

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