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Iran-Pakistan-India: Laying the ‘Peace Pipeline’

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Update: October 2, 2008
Iran and Pakistan have decided to go through with the Pipeline without India (Link 1, Link 2)

A Natural Gas Pipeline that will connect these three critical nations.
Iran, Pakistan, and India, collectively known as the IPI, are very close to finalizing the ‘Peace Pipeline’ plan that would drop a critical natural gas supply line that would run through the three neighboring countries. As always, there is a catch (or several) - and India is weary of signing on because of the Price Revision Clause being imposed by Iran that would base the price of the natural gas on a formula that utilizes Japan’s gas market as a benchmark. Nevertheless, India’s participation in the ‘Peace Pipeline’ doesn’t seem to matter as much to Iran and Pakistan as they continue bilateral talks that suggest India’s role as merely an added bonus that would sweeten the deal. Pakistan’s ambassador to Iran, Shafkat Saeed, insists that if India rejects the terms of the deal, the oil will be routed through China instead.

�We have informed Iran that we are prepared to transfer Iran�s gas to China through this pipeline should India decide not to join the gas project.� [ Associated Press of Pakistan, Oct 2007 ]

Though India has assured that it will take part in the TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline - it is clear that the TAPI pipeline is not a replacement for the Iran-Pakistan-India pipeline, and their lack of an absolute decision in light of U.S. pressure is proof that the IPI pipeline stands to bring benefit to the Indian economy.

U.S. Threatens Sanctions on Pakistan if they seal the deal with Iran - Who Cares?
Check out this Business Week editorial from June of 2005 that demonstrates the United States’ declining ability to ‘demand’ U.S.-friendly international policies. The U.S. perhaps using scare tactics, has mentioned that investment sanctions are a possibility for India and Pakistan should they join hands with Iran on this business deal - But who’s economies are at stake on a local level? There was a time when the U.S. could influence just about any nation to favor U.S. interests - either by the diplomatic efforts of our 20th century leadership or brute force.

Russia doesn’t care.
“Russia’s Gazprom has established a branch office in Islamabad to participate in IPI project (Press TV Iran, Oct. 2007)” Furthermore, Russia’s president Vladimir Putin issued a statement last week to confirm that he will continue to cooperate with Iran on their nuclear program, identified as a deadly threat by the United States.

China doesn’t care.
Chinese officials continue to insist that sanctions are not the solution and will only complicate the situation - and as a permanent U.N. Security Council member they have rejected any and all U.S. involvement in Iran.

And of course…Iran doesn’t care.
Mr. ‘what me worry?’ himself, President Ahmadinejad, is not worried about U.S. sanctions. As a matter of fact a senior Iranian military commander has warned that the Iranian Revolutionary Guard will carry out suicide bombings throughout the Persian gulf if “necessary.”

[rating:4.5/5]

Written by Fred Ostovar

October 29th, 2007 at 10:29 am

2 Responses to 'Iran-Pakistan-India: Laying the ‘Peace Pipeline’'

  1. This Pipeline can bring a HUGE economic boost to the area - i think that a lot of other things can be done to avoid the negative impacts of sanctions.

    Sam Huffington

    30 Oct 07 at 2:20 am

  2. Dont know when pak indo tension will stop, there relation was very good in last year, may be there are some person who dont want to say us happy and they are creating problems in our way, if you look at history everything is going fine they start local buses, business, exchanging other business and even sports, and now … ??

    Bilal Sarwari

    20 Feb 09 at 3:59 am

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