ArcelorMittal

ArcelorMittal's 20-F annual report filed with the SEC for fiscal year 2020 states the following: "In 2020, neither ArcelorMittal nor any of its affiliates engaged in activities, transactions or dealings relating to Iran triggering disclosure under Section 13(r)... However, ArcelorMittal’s business is subject to an extensive, complex and evolving regulatory framework. It is possible that ArcelorMittal may face conflicting obligations or risks under U.S. direct and secondary sanctions and the EU Blocking Regulation, or other conflicting instruments."

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Iranian oil, gas, petrochemical and power industries services company Petrokalooj cites ArcelorMittal as a supplier on its website.

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"The company was reported as potentially selling steel to Iran. In 2018 CalPERS designated the company as under review. In 2019 CalPERS changed the designation to “being monitored” because CalPERS’ initial screening has not identified the company as having involvement in the regions and/or activities targeted by the Act. CalPERS has maintained the company in “monitor” status for 2020. CalPERS continues to monitor the company for possible changes in status relevant to the Act."

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According to its Annual Report filed with the SEC for fiscal year 2019: "In 2019, neither ArcelorMittal nor any of its affiliates engaged in activities, transactions or dealings relating to Iran triggering disclosure under Section 13(r)."

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According to ArcelorMittal's 2018 SEC disclosure: "In 2018, ArcelorMittal sold the following products to customers in Iran:

In 2018, ArcelorMittal sold commodity-grade long and flat steel products and tubes for the consumer and construction sector, and the automotive sector and alloy steel plates destined to industrial projects as detailed below: 

ArcelorMittal’s subsidiary ArcelorMittal International FZE in Dubai (“AMID”) sold steel products to customers in Iran, generating $66.2 million in revenue in 2018, which amounts to 4% of AMID's total sales in 2018.

AMID sells to trading companies, most of which are based in Dubai and some of which are owned by Iranian nationals, that export and ship the products to stockists (i.e., wholesalers) and fabricators in Iran which, to the best of ArcelorMittal’s knowledge, on-sell them primarily to companies involved in the private-sector construction and consumer goods industries.

Following the changes in U.S. secondary sanctions on May 8, 2018, ("Re-imposition of US Sanctions"), AMID has only sold (through traders) finished commodity grade long and flat steel products in the form of hot rolled coils and cold rolled coils to Iranian companies involved in construction and consumer goods industries. To the best of ArcelorMittal’s knowledge AMID has not had any direct or indirect sales to customers in Iran since November, 2018.

AMID continues to monitor this market and the market risks involved, before making any decision relating to continuation of the above described business by AMID in 2019.

During January to May 2018, ArcelorMittal’s Europe segment sold coated flat products, alloy steel plates, sections, wire rod and seamless pipes both directly and indirectly for projects in Iran. These activities generated $9.8 million in revenue with a profit of $0.52 million; ArcelorMittal’s Europe segment, to the best of ArcelorMittal's knowledge, has not had any direct or indirect sales to customers in Iran since June 2018.

Additionally, during January to May, 2018 ArcelorMittal’s Europe segment sold flat coated and non-coated products destined to Iranian automotive customers generating $2.54 million in revenue with a profit of $0.38 million. According to press reports and other public information, these companies may have links to the Iranian Government. ArcelorMittal's Europe segment, to the best of ArcelorMittal's knowledge, has not had any direct or indirect sales to Iranian automotive customers since June 2018.

ArcelorMittal's Europe segment continues to monitor this market and the market risks involved before making any decision relating to continuation of the above described business by ArcelorMittal's Europe segment in 2019.

To the best of the Company’s knowledge, none of the above sales have gone to any sanctionable end-uses or end users. No U.S. affiliate or persons are involved in these sales, and the sales are not conducted in U.S. dollars.

ArcelorMittal continues to monitor developments in this area, in particular the status of the Joint Comprehensive Plan of Action ("JCPOA") the Re-imposition of US Sanctions, and the expansion of the EU Blocking Regulation (Council Regulation (EC) 2271/96) and will determine whether and to what extent they affect its business with Iranian customers as currently conducted and intended to be conducted. ArcelorMittal carefully monitors political risk and sanctions exposure and has procedures and systems in place intended to manage those risks.

However, ArcelorMittal’s business is subject to an extensive, complex and evolving regulatory framework. Significant direct U.S. sanctions against Iran remain and significant U.S. secondary sanctions against Iran were re-imposed, and the risk is not mitigated by the EU Blocking Regulation. It is possible that ArcelorMittal may face conflicting obligations or risks under U.S. direct and secondary sanctions and the EU Blocking Regulation, or other conflicting instruments Despite its governance, compliance policies and procedures and continuous efforts to comply with all applicable sanctions regimes, its systems and 

procedures may not always prevent the occurrence of violations which may lead to regulatory penalties or cause reputational harm to operating subsidiaries, joint ventures or associates. See “Item 3.D—Key information—Risk factors.”

Iran-related activities of ArcelorMittal affiliates

Pursuant to Section 13(r) of the Securities Exchange Act of 1934, ArcelorMittal is required to disclose whether any of its affiliates have engaged in certain Iran-related activities and transactions.

HPCL-Mittal Energy Limited (“HMEL”), a joint venture in which the HSBC Trustee (C.I.) Limited, as trustee of trusts of which Mr. Lakshmi N. Mittal, Mrs. Usha Mittal and their children are the beneficiaries, holds a 48.99% stake, owns and operates the Guru Gobind Singh Refinery, an oil refinery located in the Bathinda district of Punjab, India.

During the period of January to April 2018, in connection with its oil refining activities, HMEL purchased approximately 3.8 million barrels of crude oil on FOB basis from the National Iranian Oil Company (the "NIOC"). In addition HMEL also used shipping services from the National Iranian Tanker Company ("NITC") for the movement of crude oil from the Middle East including Iran to India.

HMEL did not purchase crude oil from NIOC or use shipping services from NITC after US secondary sanctions were re-imposed on Iran in August 2018.

During 2018, HMEL made total payments of $ 367.9 million including $125.80 million outstanding against cargos purchased in 2017 to NIOC. In 2018, HMEL paid $4.10 million for NITC’s shipping services. To the best of the Company’s knowledge none of the transactions were conducted in U.S. dollars. HMEL made no sales of refined products to Iran.

HMEL produces a variety of petroleum and petrochemical products, which individually require different types of crude oil in different quantities. HMEL generally co-mingles crude oil purchased from various sources, making it difficult to trace the raw materials used in manufacturing a given product or to link revenues directly to such inputs. HMEL cannot determine with certainty the amount of its revenue or profit in 2018 that were related to crude oil purchased from the NIOC.

PT Ispat Indo and its subsidiaries, a group of companies in which the HSBC Trustee (C.I.) Limited, as trustee of a trust of which Mr. Lakshmi N. Mittal, Mrs. Usha Mittal and their children are the beneficiaries, holds a 100% stake, owns and operates various steel manufacturing facilities at different locations in Indonesia.

During the period from January to July 2018, in connection with its activities, PT Ispat Indo and its subsidiaries  purchased approximately 64,000 MT of steel billets and Direct Reduced Iron combined through different traders based in Germany and Austria, having offices in Dubai,  with shipment from Arfa Iron & Steel, Khouzestan Steel Company and South Kaveh Steel Co.(SKS) in Iran.

Any and all contracts entered into by PT Ispat Indo after the re-imposition of US sanctions on Iran were canceled and any advance payments made in connection therewith were held by suppliers as penalties or claims for cancellation of the contract."

During 2018, PT Ispat Indo and its subsidiaries made total payments of SGD 37.794 million for material received from Iran before August 2018." (SEC, "Form 20-F," 2/25/2019). 

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ArcelorMittal has reported selling steel to Iran. In 2018, CalPERS designated ArcelorMittal as "Under Review" for reportedly selling steel to Iran. CalPERs maintained the "Under Review" designation in 2018.

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" ArcelorMittal Temirtau, a Kazakh unit of the world’s largest steelmaker, will suspend the export of hot-rolled steel coils to Iran due to the re-imposition of U.S. sanctions, Alex Agoureev, an adviser to the company, told Reuters.

“Supplies to Iran will be temporarily suspended due to the sanctions. Once sanctions are lifted, the supplies will be resumed,” said Agoureev, an adviser to ArcelorMittal CIS CEO Paramjit Kahlon." (Reuters, "ArcelorMittal Temirtau to suspend hot-rolled steel coil exports to Iran - advisor," 7/17/2018). 

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According to its Annual Report filed with the SEC for fiscal year 2017: "In 2017, ArcelorMittal sold the following products to customers in Iran: commodity-grade long and flat steel products for the consumer and construction sector, and flat steel products for packaging uses and the automotive sector. ArcelorMittal’s subsidiary ArcelorMittal International FZE in Dubai (“AMID”) sold steel products to customers in Iran, generating $334 million in revenue in 2017.
AMID sells to trading companies, most of which are based in Dubai and some of which are owned by Iranian nationals, that export and ship the products to stockists (i.e., wholesalers) and fabricators in Iran which, to the best of ArcelorMittal’s knowledge, on-sell them primarily to companies involved in the private-sector construction and consumer goods industries. Following the significant easing of UN, EU and U.S. secondary sanctions on January 16, 2016 (“Implementation Day”) in accordance with the Joint Comprehensive Plan of Action (“JCPOA”), AMID has started direct sales of commodity grade long and flat steel products to Iranian companies in Iran involved in the construction and consumer goods industries, amounting to 25% of AMID’s sales in 2017 in Iran. ArcelorMittal intends to continue the above described AMID business in compliance with applicable sanction laws in 2018.

In 2017, ArcelorMittal’s Europe segment sold coated flat products, alloy steel plates, sections and seamless pipes both directly and indirectly for projects in Iran. These activities generated $9.8 million in revenue with a profit of $0.5 million; ArcelorMittal’s Europe segment intends to continue this business in light of the changes to the sanctions regime on Implementation Day.
ArcelorMittal’s Europe segment has made sales of flat coated and non-coated products destined to Iranian automotive customers generating $15 million in revenue with a profit of $2 million. According to press reports and other public information, these companies may have links to the Iranian Government. ArcelorMittal Europe intends to continue this business."

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In 2017, CalSTRS designated ArcelorMittal as "Under Review" for reportedly selling steel to Iran. CalSTRS maintained the "Under Review" designation in 2018.

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On March 5, 2017, it was reported that ArcelorMittal: expanded its cooperation with Iran in 2016 by increasing steel product shipments to the country….  In 2016, steel sales of ArcelorMittal’s subsidiary ArcelorMittal International FZE in Dubai, otherwise known as AIMD, to customers in Iran generated $388 million in revenue, according to an official statement….  In the meantime, ArcelorMittal’s Europe division has been concentrating on sales of coated flat products, alloy steel plates and stay cable strands both directly and indirectly for projects in Iran. (Financial Tribune, “ArcelorMittal Expands Steel Sales to Iran,” 3/5/2017; and See Metal Bulletin, “Lower flat steel import prices arouse Iranian customers’ interest,” 4/26/2017).

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According to its Annual Report filed with the SEC for fiscal year 2016: "

In 2016, ArcelorMittal sold the following products to customers in Iran: commodity-grade long and flat steel products for the consumer and construction sector, and flat steel products for packaging uses and the automotive sector.  ArcelorMittal’s subsidiary ArcelorMittal International FZE in Dubai (“AMID”) sold such steel products to customers in Iran, generating $388 million in revenue in 2016. AMID sells to trading companies, most of which are based in Dubai and some of which are owned by Iranian nationals, that export and ship the products to stockists (i.e., wholesalers) and fabricators in Iran which, to the best of ArcelorMittal’s knowledge, on-sell them primarily to companies involved in the private-sector construction and consumer goods industries. Following the significant easing of UN, EU and U.S. secondary sanctions on January 16, 2016 (“Implementation Day”) in accordance with the Joint Comprehensive Plan of Action (“JCPOA”), AMID has started direct sales of commodity grade long and flat steel products to Iranian companies in Iran involved in the construction and consumer goods industries, amounting to 12.3% of AMID’s 2016 sales in Iran. AMID also resumed sales of API grade slab products for use in the energy and petrochemicals sector. ArcelorMittal intends to continue the above described AMID business in compliance with applicable sanction laws in 2017.

 In 2016, ArcelorMittal’s Europe segment sold coated flat products, alloy steel plates and stay cable strands both directly and indirectly for projects in Iran. These activities generated $5.8 million in revenue with a profit of $0.8 million; ArcelorMittal’s Europe segment intends to continue this business in light of the changes to the sanctions regime on Implementation day. ArcelorMittal’s Europe segment has made sales of flat coated and non-coated products to Iran Khodro & Renault Pars generating sales of $1.7 million. According to press reports and other public information, these companies may have links to the Iranian Government. ArcelorMittal’s Europe segment has also made sales of cable stay to a European construction company for use in a bridge project for the Municipality of Shiraz for $0.4 million. ArcelorMittal Europe intends to continue this business."

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According to its Annual Report filed with the SEC for fiscal year 2015: "In 2015, ArcelorMittal sold the following products to customers in Iran: commodity-grade long and flat steel products for the consumer and construction sector, and flat steel products for packaging uses and the automotive sector. To the best of ArcelorMittal’s knowledge, these products do not go to any sanctionable uses or end-users; while (as described below) it does have sales to the Iranian automotive sector, to ArcelorMittal’s knowledge all such sales were made while secondary sanctions against the sector were suspended. ArcelorMittal’s subsidiary ArcelorMittal International FZE in Dubai (“AMID”) sold steel products to trading companies that export to customers in Iran, generating $452 million in revenue in 2015. AMID sells commodity-grade long and flat steel products (including semi-finished products) that the Company understands to be for non-sanctionable end-uses and to non-sanctionable entities, to trading companies, most of which are based in Dubai and some of which are owned by Iranian nationals, that export and ship the products to stockists (i.e., wholesalers) and fabricators in Iran which, to the best of ArcelorMittal’s knowledge, on-sell them primarily to companies involved in the private-sector construction and consumer goods industries. ArcelorMittal intends to continue the above described AMID business in compliance with applicable sanction laws in 2016. As a reminder, ArcelorMittal had in the past sold API grade (specifications for the petroleum industry) coils, hot rolled specialty plates and tubular products (seamless pipes) to customers in Iran, but it discontinued such sales in mid-2010 following the adoption of the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010.  ArcelorMittal is examining re-entering that business in light of changes to EU sanctions and U.S. secondary sanctions as a result of the implementation of the Joint Comprehensive Plan of Action (“JCPOA”) of July 14, 2015 or otherwise."

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According to its Annual Report filed with the SEC for fiscal year 2014: "In 2014, ArcelorMittal sold the following products to customers in Iran: commodity-grade long and flat steel products for the consumer and construction sector, and flat steel products for packaging uses and the automotive sector. To the best of ArcelorMittal’s knowledge, these products do not go to any sanctionable uses or end-users; while (as described below) it does have sales to the Iranian automotive sector, to ArcelorMittal’s knowledge all such sales were made while  secondary sanctions against the sector were suspended. ArcelorMittal’s subsidiary ArcelorMittal International FZE in Dubai (AMID) sold steel products to trading companies that export to customers in Iran, generating $546 million in revenue in 2014. AMID sells commodity-grade long and flat steel products to trading companies, most of which are based in Dubai and some of which are owned by Iranian nationals, that export and ship the products to stockists (i.e., wholesalers) and fabricators in Iran which, to the best of ArcelorMittal’s knowledge, on-sell them primarily to companies involved in the private-sector construction and consumer goods industries. AMID decided to resume the sale of commodity-grade semi-finished steel products to end-users and end uses that are not prohibited or sanctionable under applicable law. No EU or U.S. affiliate is involved in any such sale of semi-finished products, and sales are not conducted in U.S. dollars. ArcelorMittal intends to continue the above described AMID business in compliance with applicable sanction laws in 2015. As a reminder, ArcelorMittal had in the past sold API grade (specifications for the petroleum industry) coils, hot rolled specialty plates and tubular products (seamless pipes) to customers in Iran, but it discontinued such sales in mid-2010 following the adoption of the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 and does not intend to re-start that business unless sanctions targeting the energy sector are repealed."

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“As economic sanctions eased last month under a temporary accord, Iran is shaping up as a hot, untapped opportunity for Western steel exporters, particularly high-grade varieties. ArcelorMittal (MT) and Russia’s OAO Novolipetsk Steel have mills in central Asia that supplied Iran before sanctions in 2007, when it imported 12.2 million tons a year of the metal, valued at $6 billion today. Other steelmakers are quietly testing the waters…About 45 producers sent representatives to a steel conference last month in Tehran to study export opportunities and investing in Iran’s domestic industry, Karbasian said. More than 10 steelmakers contacted by Bloomberg declined to comment or said they hadn’t attended the event…ArcelorMittal, the world’s biggest steelmaker, may be in one of the best positions to benefit from any easing of sanctions by shipping from its plants to the north in Kazakhstan...’There is a softening of the stance’ against Iran by foreign powers, Aditya Mittal, chief financial officer of Luxembourg-based ArcelorMittal told investors last month. ‘Kazakhstan used to sell a lot to Iran and we are hearing the Iranian market is opening up.’ Mittal told investors the company was ‘reviewing’ the Iran situation. The steelmaker, whose Kazakhstan unit sold more than 1 million tons a year to Iran before sanctions were tightened in 2012, said it no longer does so in compliance with those restrictions, when asked by Bloomberg about its plans." (Bloomberg, “Iran Thaw Seen Re-Stoking $6 Billion Market for Steel,” 3/12/14)

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“[ArcelorMittal] is reviewing the lifting of trade sanctions on Iran to see whether it could sell more steel to the country, Mr. Mittal said. Before the 2010 trade sanctions, Iran was a large consumer of steel produced by ArcelorMittal's Kazakhstan steel plant.” (Wall Street Journal, “ArcelorMittal Expects Slower Growth in Chinese Steel Demand,” 2/7/14)

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According to its Annual Report filed with the SEC for fiscal year 2013: "HPCL-Mittal Energy Limited (“HMEL”), a joint venture in which the Significant Shareholder of ArcelorMittal holds a 48.8% stake, owns and operates the Guru Gobind Singh Refinery, an oil refinery located in the Bathinda district of Punjab, India. In connection with its oil refining activities, HMEL purchased approximately 4.2 million barrels of crude oil on a CIF basis from the National Iranian Oil Company (the “NIOC”) in 2012 for an amount of approximately $460 million. The crude oil was transported from Iran to HMEL’s operations in India in a series of three shipments that took place between August and October 2012. HMEL made no sales of refined products to Iran and engaged in no other transactions with Iran." 

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"India's HMEL, part-owned by steel tycoon Lakshmi Mittal, has emerged as a new oil client of sanctions-hit Iran, potentially complicating New Delhi's bid for a renewal of its waiver from U.S. sanctions for buying crude from Tehran... HMEL is part-owned by Indian tycoon Mittal, who heads ArcelorMittal, the world's largest steelmaker. ArcelorMittal produces 35 percent of its steel in the Americas and 47 percent in Europe, according to the company's website." (Reuters, "Exclusive: India's HMEL bought 2 million barrels of Iranian oil: sources," 10/13/2012)

"ArcelorMittal has done business in Iran since at least 2005; it listed the country among its markets in a 2007 filing with the Securities and Exchange Commission, and its Web site currently shows it has an office there. The steel company has provided the United States Army with sheet metal, steel plates and other metal products."  The company has received $37.2 million in revenue and benefits from the US government for their business in Iran between 2000 and 2009.  Their business in Iran is currently active. (The New York Times, "Profiting from Iran, and the US," 3/6/2010)

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ArcelorMittal is the largest steel producer in the world. The company website lists an office in Tehran.

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Listed by U.S. Government as doing business in Iran. (U.S. Securities and Exchange Commission, List of Companies Doing Business With State Sponsors Of Terror, Removed from the Internet in July 2007)