Glencore Xstrata has denied any wrongdoing over an Iranian alumina deal, after a leaked UN reportsaid the transactions could have been a way of skirting international sanctions.Glencore Xstrata has denied any wrongdoing after UN report claimed certain transactions could have been a way of for Tehran to avoid international sanctions on its nuclear programme.
Earlier this year it was revealed that Glencore and rival Trifagura had supplied tonnes of raw material to an Iranian company that then supplied the a company involved in its nuclear programme.
The Swiss trading group had a barter agreement with the Iranian Aluminium Company (Iralco), under which Glencore provided alumina - used to make aluminium - in return for a smaller amount of the metal. It was then revealed that Iralco itself had a contract to supply aluminium to Iran Centrifuge Technology Co (Tesa), a subsidiary of Irans Atomic Energy Organisation.
If confirmed, such transactions may reflect an avenue for procurement of a raw material in a manner that circumvents sanctions," the UN document said, according to a Reuters report. The companies involved have stated that they have halted those transactions.
Glencore says it stopped any dealings with Italco when sanctions were introduced. The revelation of a supply relationship between Iralco and Tesa resulted in the European Union imposing sanctions on Iralco in December last year.
We continuously monitor all contracts which are or could be affected by sanctions. As soon as Iralco was sanctioned by the EU we ceased transactions with them, Glencore said.
Glencore complies with applicable laws and regulations, including applicable sanctions. We closely monitor all new legal developments to ensure that we continue to be in compliance with applicable laws and regulations, including applicable sanctions," Glencore added.
The FTSE 100 group said that its last trade with Iralco was in October 2012, two months before the EU levied sanctions. Prior to EU sanctions on Iralco in December 2012, the company was not aware of any link or contract between Iralco and Tesa, Glencore added.
By The Telegraph
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