US warns Pak of sanctions over Indo-Iran gas pipeline

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Islamabad, June 13: Amid Indo-Pak efforts to firm up the India-Iran gas pipeline project to be laid through Pakistan, the US has reportedly cautioned Islamabad over the likelihood of facing sanctions if it went ahead with the $4 billion project disregarding Washington’s concerns over Iranian nuclear programme.

While Pakistan’s foreign minister Khurshid M Kasuri during his meeting with US secretary of state Condoleeza Rice last week made out a strong case for Islamabad opting for the project to meet its future energy requirements, Ms Rice reportedly asserted Washington’s concerns over the project. She told Mr Kasuri that the project could violate Iran and Libya sanctions Act of 1996 of US (ILSA), which forbids more than $20 million investment in Iranian oil sector.

During their meeting, Ms Rice informed Mr Kasuri that the project was against the US laws and the violator can be deprived of US economic assistance and may also face sanctions, Pakistan daily Dawn quoted Pakistani diplomats as saying.

Responding to Pakistan’s concerns, Ms Rice is believed to have urged the Pakistani delegation to look at other options as well, such as bringing a pipeline from Qatar or the central Asian Republic of Turkmeinstan.

The firm response from US came days after petroleum minister Mani Shankar Aiyar held talks with Pakistan President Pervez Musharraf, Mr Kasuri and his Pakistani counterpart Amanullah Khan Jadoon during which the two countries decided to constitute a joint working group to study the project.

Mr Kasuri reportedly informed Ms Rice that Pakistan cannot abandon the Iranian gas pipeline project despite a strong US opposition to the scheme. The project was discussed in detail at the meeting between Ms Kasuri and Ms Rice held in Washington on Friday.

Ms Rice had also publicly opposed the project during her tour to India and Pakistan early this year.

Pakistan argued that the Iran pipeline is the most practicable as bringing gas from Qatar would double the cost while gas reserves in Turkmenistan are still unproven. Political instability in Afghanistan is another cause for concern.

Wary of the obvious consequences of annoying America, Pakistan is trying to convince the Americans that it will not be violating any US law by agreeing to build the Iranian gas pipeline, the newspaper said.

Pakistan said they will not make any investment in Iran’s oil infrastructure, which ILSA forbids.