Transammonia AG, Altendorf, Switzerland, issued a statement Dec. 13 announcing the decision of its subsidiary, Trammo Trading AG, that it will not enter into any new contracts with any company in Iran, and that subject to existing contractual obligations, business with Iran will be wound down as soon as possible.
Transammonia unit to wind down business with Iran
“Transammonia AG is a Swiss company with headquarters in Altendorf, Switzerland. Its Swiss subsidiary, Trammo Trading AG, has from time to time transacted business with Iran. Neither Transammonia AG nor Trammo Trading AG has any employees or investments in Iran,” read the statement.
“Transammonia AG and Trammo Trading AG have always operated in full support of and in full compliance with applicable US, UN, EU, and Swiss laws and regulations.
“Earlier this year, Trammo Trading AG began evaluating its business with Iran in light of the activities of the Iranian government and the resulting changes in the international business climate and in EU, UN, and US sanctions regulations. Trammo Trading AG concluded that it would begin withdrawing from activities with Iran, subject to any existing contractual obligations. The wind down will be completed as early as possible, but no later than the end of the first half of 2011.
“As privately held companies, neither Transammonia AG nor Trammo Trading AG publicly announce their business decisions. The companies are making a public announcement now in order to correct misinformation contained in recent media coverage of this subject.
“In a separate statement issued to CNBC on Nov. 22, 2010, Transammonia, Inc., the parent company of Transammonia AG, confirmed that neither it nor any of its US subsidiaries is involved in or transacting any business with Iran.”
The Transammonia statement came after an episode of CNBC that highlighted the unit’s involvement in trade with Iran. In addition, the group United Against Nuclear Iran (UANI) had called on Transammonia to end its business with Iran. UANI praised Transammonia after it made its Dec. 13 statement. “It is unfortunate that private companies persist in hiding behind foreign subsidiaries to conduct business in Iran,” said Ambassador Mark Wallace, UANI President. “We applaud CNBC for shining a bright spotlight on Transammonia’s business in Iran and we applaud Transammonia’s quick decision to cease that business. Public pressure on companies like Transammonia that do business in Iran for short-term profit will always compel these companies to make the right decision and to end their business in Iran.”
The CNBC episode also shined the light on non-U.S. companies that trade ammonia with Iran, including Mitsui, Swiss Singapore, and Transglobal. It noted that a foreign subsidiary of Honeywell also used to trade with Iran, but has stopped those activities. It also reported that four U.S. companies Koch Industries Inc., CF Industries Holdings Inc., Southern Towing, and Kirby do not.