In the wake of fresh US sanctions against Iran, telecommunications group MTN will remain alert to the challenges of continuing the repatriation of its cash from 49%-owned MTN Irancell.

The US on Tuesday withdrew from the multilateral Joint Comprehensive Plan of Action (JCPOA) agreement and reimposed economic sanctions against Iran, limiting MTN’s progress in repatriating the billions of rands in accumulated dividends and loans that had previously been frozen in Iran by prior international sanctions.

“These sanctions may limit the ability of MTN Group to repatriate cash, both dividends and loans, from MTN Irancell,” the company said in a statement to shareholders on Wednesday.

Two years ago, Iran emerged from a decade of economic isolation when a deal resulted in the lifting of the crippling sanctions against the Middle Eastern country, enabling MTN shortly thereafter to start remitting some of the-then R15.8-billion owed to the South African company.

This had followed the July 2015 JCPOA agreement among China, France, Germany, Russia, the UK and the US - collectively known as the P5+1 - the European Union (EU) and Iran to ensure that Iran’s nuclear programme will be “exclusively peaceful”.

The JCPOA was officially adopted in October 2015, followed by its implementation in January 2016, with the US and the EU lifting sanctions as Iran met its nuclear commitments.

During 2018, MTN Group repatriated €88-million from MTN Irancell, including €61-million relating to the full 2017 dividend due to MTN, as well as a further €27-million of historic dividends.

The remaining balance due to MTN is IRR10 000-billion, or €200-million.

“MTN Group remains committed to our investment in Irancell and to repatriating the balance of legacy cash in Iran while remaining compliant with appropriate legislation,” the company assured shareholders, adding that it would continue to monitor the situation, including the response of the Iranian authorities and the other JCPOA members.