WASHINGTON, Nov 25: The deal that eases US-led sanctions on Iran can also benefit Pakistan’s effort to buy gas from the neighbouring country but only if Washington agrees to help.
The agreement that Iran and six world powers signed in Geneva on Saturday for capping Tehran’s nuclear programme, include a set of voluntary measures that the United States and its European allies agreed to undertake.
In one such measure, they agreed to “suspend US and EU sanctions on Iran’s petrochemical exports, as well as sanctions on associated services”.
Another measure requires the United States and its allies to “pause efforts to further reduce Iran’s crude oil sales, enabling Iran’s current customers to purchase their current average amounts of crude oil”.
The measure also commits these Western powers to “suspend, for such oil sales, the EU and US sanctions on associated insurance and transportation services”.
Diplomatic observers in Washington say that such clauses could be expanded to allow Pakistan to build the 2,775 km pipeline, which can bring 40 billion cubic metres of natural gas per year when fully functional.
They point out that since under the Geneva deal, the United States has agreed to ease sanctions on the Iranian oil industry, the concession should also apply to the gas project.
They also argue that since Pakistan signed the pipeline project before the Geneva agreement, it can be included on the list of Iran’s “current customers”.
The then Iranian and Pakistani presidents signed the deal for building the pipeline on March 11, 2013. The project is to be completed in 22 months with Iran’s financial support.
The observers also say that the easing of “US sanctions on associated insurance and transportation services” should allow international and Pakistani companies to participate in the pipeline project.
But the same observers also acknowledge that Washington would only “accept this pro-Pakistan interpretation of the Geneva deal if it wants to help Pakistan cope with its energy crisis by allowing it to import gas from Iran”.
“Otherwise, the Americans can also use counter arguments to show that the Geneva deal is not applicable to Pakistan,” said one observer.
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