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.