South Africa-based MTN Group says a US decision to pull out of a nuclear deal with Iran could hamper its ability to repatriate funds from its local subsidiary MTN Irancell. The US is looking to re-impose economic sanctions on Iran, which were lifted under a deal signed in 2015 when Iran agreed to limit any development which could be used for nuclear weapons.
MTN says it has taken around EUR88 million (USD104 million) out of Iran so far in 2018, including EUR61 million relating to its 2017 dividend and EUR27 million from historic dividends. There is still approximately EUR200 million waiting to be transferred, the group added. MTN insists it remains committed to investing in MTN Irancell, which is the country’s second largest wireless operator by subscribers. The group says it will continue to monitor the political situation, with European signatories keen to see the deal with Iran remain in place despite the US move.