South Korean Hyundai Engineering & Construction announced it has canceled a $521 million agreement to build a petrochemicals complex in Iran, Reuters reported.
Hyundai E&C said that the customer’s ability to fund the project had been hit due to the country’s declining economic situation.
Hyundai E&C said the consortium it led for the project’s construction canceled the contract in a regulatory filing on October 28.
“The contract was canceled because financing is not complete, which was a prerequisite for the validity of the contract, as external factors worsened such as economic sanctions against Iran,” Hyundai E&C said in its filing.
US sanctions on the Iranian energy industry will take full effect on November 4 and were reinstated after President Donald Trump withdrew from Iran nuclear deal, originally agreed in 2015 to curb the Islamic Republic’s nuclear program.