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South Korea has exited another Iranian downstream project as US sanctions ratchet up. Hyundai Engineering & Construction this week cancelled an agreement with Ahdaf Investment Company, a subsidiary of Tehran’s Petroleum Industry Pension Fund (PIPF), for building a $3.2bn petrochemicals complex.
This marks the third exit by a Korean firm from Iran projects after US President Donald Trump decided in May to pull out of Iran nuclear accords. Renewed US sanctions against Iran will take effect 5 November.
Hyundai stated that the contract was cancelled because “financing is not complete, which was a prerequisite for the validity of the contract.” The explanation chimes with that given by Korea’s Daelim in June, when it pulled out of a $1.9bn deal to upgrade Isfahan refinery ( MEES, 8 June ). (CONTINUED - 352 WORDS)