Economy, Domestic Economy
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Westminster Group Places Iran Projects on Hold

Westminster Group Places Iran Projects on Hold Westminster Group Places Iran Projects on Hold

Security solutions supplier Westminster Group PLC said on Tuesday it has placed two projects in Iran on hold, as US President Donald Trump has decided to reimpose sanctions on the Islamic Republic.

Shares in the company were trading down 7.2% at 11.49 pence each, Alliance News reported.

The company said a “defining achievement” in 2018 was the signing of a 15-year contract for equipment and services at an airport in Iran.

“The contract, with initial annual revenues in excess of €24 million, was the culmination of over two years of complex and intensive negotiations and planning,” Westminster Group said.

However, a day after signing the contract, Trump announced to back out of the Iran nuclear deal and reimpose sanctions on the country.

“While none of Westminster’s proposed equipment or services is subject to any existing or proposed sanctions, the US action has implications for finance and banking, and has created uncertainty in the international business community,” the group said.

Given the initial uncertainty in Iran, the company decided to put the airport project on hold while it seeks to clarify the impact of the sanctions.

The company has also put on hold a second project in Iran for €2.65 million, signed at the same time. “This decision, which we hope will be temporary, was prudent and sensible as it would have been irresponsible for the company to commence these projects until such time as we are certain that issues emanating from the US withdrawal would not prevent a successful implementation,” Westminster’s Chief Executive Officer Peter Fowler said.

 

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