Despite the threat of secondary sanctions from the US, which frequently punishes countries and companies outside US jurisdiction for doing business with entities subject to US primary sanctions, the decision was made.
The United States imposes a variety of sanctions for doing business with sanctioned companies, the most serious of which is loss of access to the US financial system, which includes access to its currency. Since the start of the Russia-Ukraine war, SA banks have been wary of doing business.
CEF chairperson Ayanda Noah said last month that it would cost around R2 billion and take about two years to return the refinery to operation. PetroSA is stressed financially, with several years of losses and an unfunded liability of R9.6 billion on its rehabilitation facility.