S Korea's Daelim cancels $2.08bn order from Iran for fear of sanctions

TEHRAN, Jun. 02 (MNA) – South Korea’s Daelim Industrial said on Friday that a contract worth 2.23 trillion won ($2.08 billion) for a refinery project in Iran was canceled amid the fear of sanctions from Trump administration.

The order was canceled as the Esfahan Refinery Upgrading Project failed to procure financing because of economic sanctions imposed on Iran, Daelim said in a regulatory filing.

In recent weeks, European companies such as oil giant Total SA, plane maker Airbus SE and industrial conglomerate Siemens AG have said they were pulling back from Iran opportunities to comply with US sanctions.

General Electric Co. also is closing its office in Tehran due to the US sanctions on Iran. The company is planning to end sales of oil and natural-gas equipment later this year in Iran, people familiar with the matter said, illustrating how US withdrawal from the nuclear deal is shutting a narrow window of opportunity for some American businesses there.

Smaller US companies selling goods such as medical equipment in Iran are also reconsidering their presence in the country.

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