Financial Post, 09 July 2010 – United Against Nuclear Iran (UANI) on Thursday called on Honeywell to comply with the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (the “Iran SAD Act”) and end its business in Iran. On July 1, 2010 President Obama signed the Iran SAD Act into law.
Honeywell’s business in Iran, which is aimed at developing Iran’s petroleum refineries, is directly targeted by, and illegal under the Iran SAD Act. Honeywell’s association with the Islamic Revolutionary Guard Corps (IRGC) on Iran-based projects is also illegal under the Iran SAD Act. The Iran SAD Act requires companies that contract with the U.S. Government to certify that they do not conduct business in Iran. As the leading U.S. Government contractor among all companies that do business in Iran, Honeywell cannot make such a certification.
Honeywell’s violation of the Iran SAD Act will result in the loss of billions of dollars in U.S. business, and will have a material adverse effect on Honeywell’s financial condition. Honeywell, despite its understanding that the Iran SAD Act could affect its business in Iran, has failed to disclose this risk to investors.
In a letter to David M. Cote, the CEO of Honeywell, UANI President, Ambassador Mark Wallace wrote:
This letter follows my letter to you of April 8, 2010, which is attached for your review. In that letter, we asked that Honeywell immediately cease doing business in Iran.
Honeywell refused to take such action and instead made statements to the press that “[s]hould the U.S. Congress pass a law that prohibits subsidiaries of U.S. companies from doing business in Iran, Honeywell will comply fully as it does with all other laws in the countries in which it operates.”
On July 1, 2010, President Obama signed into law new Iran sanctions legislation, the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (the “Iran SAD Act”)…
The new law is focused on Iran’s gasoline suppliers and those businesses that assist Iran in developing petroleum refineries. Honeywell’s business in Iran is directly covered by the Iran SAD Act.
In addition, under the Iran SAD Act sanctions may be imposed on any entity that conducts business with a representative or affiliate of Iran’s Revolutionary Guard Corps (IRGC)… Honeywell’s work in association with the IRGC is in clear violation of the Iran SAD Act.
The law requires companies that do business with the U.S. Government to certify that they do not engage in business in Iran that is subject to sanctions. Honeywell is a major U.S. Government contractor. Honeywell cannot make such a certification. If Honeywell continues its business in Iran it will be precluded from contracting with the U.S. Government… The Iran SAD Act requires Honeywell to choose between doing business with Iran and with the U.S. That choice should be clear.
Given the foregoing please immediately cease and desist your business in Iran.