|  | 


South Korean firm annuls deal with Iran

Tehran, South Korean Company 'Daelim' has cancelled its oil project deal worth 2.2 billion dollars with Iran.

Daelim Industrial Co., a major construction firm here, has canceled a construction deal worth 2.2 trillion won (US$2 billion) with an Iranian oil refining company in the wake of the United States' renewed sanctions against the Middle Eastern country, South Korean media 'Yonhap' announced on Friday.

Daelim disclosed the cancellation of the deal with Esfahan Oil Refining Company in a report to the financial watchdog Financial Supervisory Service, the report by the South Korean news agency said.

The deal, signed in March last year, was designed to improve and expand the facilities of Iran's refinery in Isfahan, located around 400 kilometers south of Tehran, it said.

Under the deal, Daelim had been in contact with financial companies at home and abroad to finance the construction project, but the financial firms reportedly decided not to finance it in the face of the recent US sanctions on Iran, including economic sanctions, it added.

US President Donald Trump announced on May 8 that Washington would withdraw from Iran nuclear deal and reinstate nuclear sanctions on Iran.

This is while most world powers including Russia, China, and European Union have repeatedly stressed that keeping the deal is in the interest of world peace and security.

Source: Islamic Republic News Agency - IRNA

The iran News Gazette is mainly concerned with news and information about the Arab region and also covers international issues. Its main objective is to provide reliable and verified information on the Arab region for publishing on the digital landscape.