Pakistan may face tough sanctions over gas pipeline with Iran
US officials have termed the developments in the Iran-Pakistan (IP) pipeline project as violation of US restrictions over Iran. The US wants Iran to halt its nuclear programme, with talks currently under way to try to break the impasse. If Pakistan continues with the IP pipeline project, it could face tough US economic sanctions.
According to Senator Robert Menendez, Chairman of the Senate Foreign Relations Committee, 鈥淚f Pakistan moves forward with the pipeline, it will be in clear violation of our Iran sanctions regime.鈥�
According to the Under Secretary of State for Political Affairs, Wendy Sherman, the Obama Administration is having discussions in this regard with Pakistan. Sherman told members of the Senate Foreign Relations Committee, 鈥淥n Pakistan, we have had those discussions [on Iran-Pakistan gas pipeline] and will continue with the Pakistani Government. My own assessment is it鈥檚 not going anywhere anytime soon.鈥�
Sherman added that Pakistan 鈥渃ertainly understand where we are and what our sanctions require should it proceed.鈥�
Pakistan鈥檚 resistance
The US has been opposing the IP pipeline project from the beginning. However, Pakistan has been defying US pressure, insisting that the pipeline is vital in relieving energy shortages in Pakistan.
Pakistan鈥檚 Prime Minister, Nawaz Sharif, said 鈥淧akistan needs gas very badly鈥here is an acute shortage of gas in Pakistan, so we have to import gas from somewhere.鈥� The Prime Minister also added that, in Islamabad鈥檚 legal opinion, the pipeline would not trigger sanctions.
Last week Sharif said that his country will proceed with the natural gas pipeline deal with Iran that was agreed to by the previous Pakistani Government, despite objections from the US.
The Iran-Pakistan pipeline
The IP gas pipeline will export 21.5 million m3d of Iranian natural gas to Pakistan.
The pipe is already completed on the Iranian side, but Pakistan needs to find US$ 1.5 billion to build the rest.
Edited from various sources by
Read the article online at: /business-news/04102013/pakistan_may_face_tough_sanctions_over_natural_ip_gas_pipeline_with_iran/
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