U.S. Response to Pakistan’s Effort to Seek Exemption from Iran Sanctions
WANA (Sep 04) – During a press briefing, the U.S. State Department spokesperson expressed support for Washington’s sanctions policy against Iran when asked about Pakistan’s attempts to obtain an exemption from U.S. sanctions to complete the gas pipeline project with Iran.
Matthew Miller, the State Department spokesperson, addressed reports suggesting Pakistan’s interest in securing a waiver from the U.S. to finalize the Iran-Pakistan gas pipeline. He stated that Washington does not encourage any country, including Pakistan, to consider trade with Iran.
In the briefing, Miller remarked, “We continue to enforce our sanctions against Iran. Therefore, we advise anyone considering commercial agreements with Iran to also consider the consequences of such agreements.”
The Iran-Pakistan gas pipeline is a long-term project between Tehran and Islamabad that has faced numerous challenges, including financing, delaying its completion for over two decades. This pipeline is intended to transport gas from Iran to Pakistan.
Iran has reportedly spent $2 billion to construct the pipeline on its side of the border and has made it ready for gas export. However, Pakistan has not started the construction on its side, and shortly after the agreement was signed in 2010, Pakistan announced that the project was on hold due to international sanctions against Iran.
In response, Iran’s former oil minister emphasized that Iran had fulfilled its commitments and expected Pakistan to do the same and expedite the process.
In 2014, Pakistan requested a 10-year extension to complete the pipeline, but the agreement is set to expire in September of this year. Iran may take the case to the International Court of Justice in The Hague and seek compensation from Pakistan, potentially up to $18 billion, for failing to meet its obligations under the agreement.
Facing this potential penalty, Pakistan agreed earlier this year to begin constructing 80 kilometers of the pipeline. In March, Pakistan announced its intention to seek a sanctions waiver from the U.S.
Ishaq Dar, Pakistan’s Deputy Prime Minister and Foreign Minister, previously responded to Washington’s threat of sanctions for trading with Iran, saying, “We must be mindful of our own interests and commitments. The government must decide when and how to proceed with what we want to do, keeping Pakistan’s interests in mind, regardless of what the U.S. and other countries say.”
He added, “We cannot be dictated to, and we will not allow anyone to obstruct us. Pakistan is an independent country, and just as we respect the independence of other nations, we expect others to respect Pakistan’s independence as well.”
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