Kuwait Scraps Deal With Dow Chemical

By Diana Elias

KUWAIT CITY -- Kuwait's government on Sunday scrapped a $17.4 billion joint venture with U.S. petrochemical giant Dow Chemical(DOW Quote) after criticism from lawmakers that could have led to a political crisis in this small oil-rich state.

The Cabinet, in a statement carried by the state-owned Kuwait News Agency, said the venture, known as K-Dow Petrochemicals, was "very risky" in light of the global financial crisis and low oil prices. The move came just days before the Jan. 1 startup date for the joint venture.

...