Iran's latest warning to Pakistan; Pakistan must pay $18 billion in fines if gas pipeline project is not implemented

Afghan Voice Agency (AVA): Iran has issued its latest warning to Pakistan that Tehran has no choice but to fight against Pakistan for not building and completing the Iranian gas import pipeline by September this year. (by the autumn of this year) to the Paris Arbitration Court.

 

The project, which was scheduled to be implemented in 2014, has been delayed by 10 years due to US sanctions against Iran, Mehr said.

 

The 25-year contract to buy Pakistani gas from Iran through the pipeline was signed in 2009 under French law, and the Paris-based arbitration court is the place to arbitrate and decide on disputes between the two countries. The French arbitration court does not recognize the US sanctions.

 

Iran and Pakistan signed a revised agreement in September 2019, under which Iran pledged not to approach the International Court of Justice for delays in the construction of the pipeline on the Pakistani side, provided that the Pakistani side completed its pipeline to the Iranian border by 2024.

 

Pakistan has also pledged to complete its pipeline by 2024 and then receive 750 million cubic feet of gas daily from Iran.

 

Under the revised agreement, Pakistan was obliged to complete part of the pipeline on its territory by February and March 2024. If the pipeline was not completed, Iran again gave Pakistan a 180-day deadline to complete and finalize the pipeline by September 2024; But with the expiration of the six-month period and no serious progress in the construction of the pipeline, Iran has issued its latest warning to the Pakistani side and announced that it will exercise its right to appeal to the Paris Arbitration Court.

 

If Iran does not exercise its right to appeal to the Paris Arbitration Court by September 2024, it will lose its right to launch a legal battle against Pakistan, it said.

 

Iran had earlier issued its second legal warning to Pakistan in November to December 2022, asking it to build part of the Iran-Pakistan (IP) gas pipeline project on its territory by February 2024 or be prepared to pay a fine of $18 billion. 

 

Pakistan's energy sector officials are seeking to hire a foreign law firm to prepare Pakistan's defense bill for arbitration after receiving a warning notice from Iran about 10 days ago.

 

Senior Pakistani government officials say they cannot continue the project because of US sanctions; While they have tried hard to get an exemption from the US, the Biden administration is against the pipeline project and in March 2024, the US Deputy Secretary of State told a meeting of the US Congressional Committee that we will tell Pakistan about the serious consequences of the pipeline project. 

 

According to Iranian media, Tehran has not yet met Pakistan's claim that it is impossible to obtain exemptions from the United States, saying Iraq and Turkey have been using Iranian gas for a long time after receiving exemptions from US sanctions. Similarly, India has received exemptions from the United States for purchases of Iranian oil products.

 

The French arbitration court does not recognize the US sanctions. Under the initial agreement, Pakistan is obliged to pay Iran $1 million a day from January 1, 2015, based on the fine clause, and if Iran takes the case to arbitration, Pakistan must pay a minimum fine ($18 billion).

 

According to the project, the two countries were supposed to build their pipeline to the zero point of the border. Iran had completed its pipeline to the zero point of the border with Pakistan years ago, but Pakistan refused to do so under various pretexts, including US sanctions. hit.

 

The project was scheduled to be completed by December 2014 and commissioned on January 1, 2015, according to the initial contract.