US opposes Pakistan-Iran pipeline deal

US warns Pakistan gas pipeline deal with Iran defies new sanctions.

By ASSOCIATED PRESS
June 21, 2010 00:03
1 minute read.
Pakistan Afganistan

Pakistan Afganistan 311. (photo credit: AP)

 
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 The US warned Pakistan that a recently signed gas pipeline deal with Iran could run afoul of new sanctions being finalized in Congress, the US special envoy to Pakistan  and Afghanistan said Sunday.

Richard Holbrooke delivered the message during a visit to Pakistan, his first since Iran inked a contract earlier this month to export 21.5 million cubic meters (760 million cubic feet) of gas per day to Pakistan beginning in 2014.

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 "We cautioned the Pakistanis to try to see what the (congressional) legislation is before deciding how to proceed because it would be a disaster if ... we had a situation develop where an agreement was reached which then triggered something under the law," Holbrooke said.

The US has discouraged countries from doing business with Iran because of its refusal to suspend uranium enrichment, a process that can produce fuel for a nuclear weapon. Washington has worked with the UN to levy four sets of sanctions against Iran and has also unilaterally targeted companies and individuals helping Iran develop its atomic and missile programs.

The US Congress is currently finalizing a new set of sanctions largely aimed at Iran's petroleum industry. Both houses have passed versions of the sanctions and are working to reconcile their differences.

Pakistani Foreign Minister Shah Mahmood Qureshi said Sunday that local experts have determined the pipeline deal with Iran does not violate existing sanctions. But he did not address the new sanctions being discussed by Congress.



While US officials have expressed opposition to the Pakistan-Iran gas pipeline deal, the issue is complicated by Washington's reliance on Pakistan's cooperation to fight al-Qaida and the Taliban.

The US also acknowledges that Pakistan faces a severe energy crisis and has made aid to the energy sector one of its top development priorities. Electricity shortages in Pakistan cause rolling blackouts that affect businesses and intensify suffering during the hot summer months.

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