The U.S. Rejects Sanction Exemption for Pakistan Regarding Iran Gas Pipeline Construction

On Tuesday, the United States announced that it does not support the continuation of the gas pipeline project between Iran and Pakistan, warning that trade with the Islamic Republic would risk facing U.S. sanctions. According to Reuters, a U.S. State Department spokesperson told reporters, "Trade with the Islamic Republic carries the risk of encountering U.S. sanctions, and we advise everyone to consider this matter carefully." On Monday, Pakistan's Minister of Petroleum, Musadik Malik, announced that Islamabad has decided to request an exemption from U.S. sanctions against the Islamic Republic for the Iran-Pakistan gas pipeline project to avoid being sanctioned. Pakistan's Foreign Ministry spokesperson, Mumtaz Zahra Baloch, had previously told Voice of America, "This is part of the pipeline that is being built within Pakistan. Therefore, any negotiations or requests for exemptions from a third country are meaningless." Donald Lu, the U.S. Assistant Secretary of State for South and Central Asian Affairs, recently stated that the department is monitoring the construction stages of the pipeline, but Pakistan has not requested an exemption from sanctions for gas trade with Iran. Last month, Pakistan's interim government agreed to begin construction of 80 kilometers of the gas pipeline to avoid paying billions of dollars in penalties to the Islamic Republic for years of delays in a $7 billion project. Pakistan had previously rejected media reports about the postponement of the multi-billion dollar gas pipeline project with Iran, stating that it is "actively" working to dissuade the Islamic Republic from pursuing a complaint regarding this project. The Islamic Republic claims that it fulfilled its agreement with Pakistan years ago and established its related pipeline, but the Pakistani side has not taken any action due to fears of U.S. sanctions and has made no progress in implementing the contract. Pakistan claims it does not need a "sanction exemption" to construct the gas import pipeline from Iran. Pakistan: Do not complain, we will build the gas pipeline. Turkmenistan's gas exports to Pakistan; the 'gas dream' of Iran has vanished. Iran threatened Pakistan with an $18 billion penalty for delays in the gas pipeline construction project. Iran has also been deprived of the eastern gas market, while Pakistan is making deals with the Russians.