MTN’s €200m trapped in Iran
The decision by the US President, Donald Trump to pull out of the Iranian Deal may adversely affect MTN’s ability to repatriate its fund in Iran. According to the Telecomms company, about 200 million euro may be trapped in Iran following the new development.
This amount represents the balanced of about $1bn stuck in Iran due to US-led sanctions imposed on the country to curb its nuclear ambition.
The sanctions ended early last year when the US, UK, France, China, Russia and Germany entered into and agreement with Iran on its nuclear programme. The deal known as the Joint Comprehensive Plan of Action was signed in July 2015 saw Iran accepting to strictly limit its nuclear programme in return for an escape from the sanctions that grew up around its economy over a decade prior to the accord. Under the deal, Iran unplugged two-thirds of its centrifuges, shipped out 98% of its enriched uranium and filled its plutonium production reactor with concrete.
The withdrawal of US from the deal and imposition of sanctions on Iran by US, will see Iran cut-off again from world markets.
Speaking on the development, MTN said, The remaining balance due to MTN is about 200 million euros, adding it was committed to its investment in Irancell and to repatriating the balance of legacy cash.
“We will continue to monitor the situation including the response of the Iranian authorities”, The Telecomms company asserted.
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