Japan, Iran to End Partnership on Chemical Project
Japan’s giant trading company and Iran have reached a basic accord to end their partnership for a long-stalled multibillion-dollar joint petrochemical project in southern Iran, the Japanese partner reported Monday.
Mitsui & Co. said the agreement was contained in a joint communique issued Sunday in Tehran by Koichiro Ejiri, president of Mitsui, and Ahmad Rahgozar, president of the Iranian National Petrochemical Co.
Ejiri estimated the amount of compensation to be paid by the Mitsui Group at between $857 million (120 billion yen) and $929 million (130 billion yen), the reports said.
Ejiri was in Tehran to negotiate with Rahgozar on terms for Mitsui to withdraw from the project, which had been stalled by the protracted Iran-Iraq war. A cease-fire was negotiated in August, 1988.
“The agreement confirmed both sides will dissolve the partnership,” a spokesman for the Japanese trading company said. “The agreement has yet to be signed formally.”
The official said the accord calls for the Mitsui Group to pay compensation for its withdrawal from the project, but he declined to give any figures.
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