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Sasol fears US sanctions

Oct 13 2009 10:10

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Johannesburg - South African petrochemicals group Sasol fears that the United States might impose sanctions on it due to its investments in Iran, the Business Day newspaper reported on Tuesday.

Sasol, the world's top maker of motor fuel from coal, said in a filing with the US Securities and Exchange Commission on Friday that it was concerned Washington's Iranian Transactions Regulations posed a risk to its operations, the paper said.

"There are possible risks posed by the potential imposition of U.S. economic sanctions in connection with activities we are undertaking in the polymers field, as well as feasibility studies relating to a potential ammonia-urea project at Assaluyeh in Iran," the paper quoted the company as saying.

The regulations are part of the pressure being put on Tehran over its nuclear programme, which Washington suspects has military aims although Iran says its purpose is to produce electricity.

While the regulations restrict transactions between US persons and Iran, Sasol was worried that because of its status as a multinational, the regulations might apply to entities associated with it, including US employees and investors, Business Day said.

Sasol was originally created largely to help South Africa resist sanctions imposed in the past because of its former apartheid policies.

- Reuters

 
 
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