South Korean company cancel $2.2 bln deal with Iran

South Korean “Daelim Industrial Co” a major construction company has canceled a deal worth $2.2 bln with an Iranian oil refinery company in Isfahan city, in the wake of the United States renewed sanctions against the Islamic Republic.

According to Iranian Radio Farda, the South Korean company canceled the one year old deal due to financial difficulties to finance it from the Iranian side

The deal was designed to improve and expand Isfahan oil refinery, located 400 km south of the Iranian capital Tehran.

The oil refinery has a production capacity of 375 thousands barrel per day and supplies 22 percent of Iran’s local oil market.

The South Korean “Daelim Industrial Co” has announced last year that it will conclude developing and expanding the refinery by the end of 2020K but with the renewal of the US sanctions against Iran, the company decided to annul the deal.

This economic blow is not the first against the Islamic Republic, as General Electric has announced earlier that it will shut down its offices in Tehran and prohibit the sale of equipment for the oil and gas industry in the coming months, according to Wall Street Journal.

The United States has set November 4 as the final date for the renewal of sanctions against Iran.