Wednesday, May 18th 2016

Risky Iran business for OMV: Possible legal and financial consequences

Business deals finance terrorism, the missile program, human rights abuses - OMV violates own code of conduct

On occasion of OMV’s annual shareholders’ meeting, STOP THE BOMB today warned that business with the Iranian regime remains very risky also after Austria’s partly state-owned energy giant had signed a memorandum of understanding with the National Iranian Oil Company NIOC.

First, U.S. sanctions against the Revolutionary Guards for Iran’s terrorism support and human rights abuses are still in place. And second, the Revolutionary Guards who control large parts of Iran’s economy and foreign trade are specialists in setting up front companies, which means that European companies can never really be sure not to engage in dealings with sanctioned entities.

The International Monetary Fund only yesterday criticized the lack of anti-money laundering and terrorism-financing laws in Iran. The U.N. and NGOs report nonstop about the deterioration of the anyway disastrous human rights situation in Iran. In such an environment OMV would violate the company’s very own code of conduct.

"Apart from legal and economic risks, companies must also expect reputational losses. As it was already pointed out last summer by Ariel Muzicant, Vice-President of the European Jewish Congress, European companies, which finance Iran’s terror with trade, will face legal action," warned Stephan Grigat, STOP THE BOMB’s Research Director.