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 ‘PeacePipeline’ plan that would drop a critical natural gas supply line that would run through thethree 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 toIran 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 thatif India rejects the terms of the deal, the oil will be routed through China instead.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 theIran-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 UnitedStates’ declining ability to ‘demand’ U.S.-friendly international policies. The U.S. perhapsusing scare tactics, has mentioned that investment sanctions are a possibility for India andPakistan should they join hands with Iran on this business deal – But who’s economies are atstake on a local level? There was a time when the U.S. could influence just about any nationto 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 astatement 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 complicatethe situation – and as a permanent U.N. Security Council member they have rejected any andall 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 IranianRevolutionary Guard will carry out suicide bombings throughout the Persian Gulf if “necessary.”
The Iran-Pakistan-India (IPI) gas pipeline, once ratified, will be a building block towardspeace and stability in South Asia, and would enhance the magnitude of trade betweenthe three countries. But the pipeline is yet to see an agreement on prices: the pricesproposed by Iran are more than double of what Pakistan and India are willing to accept.India wants to pay a fixed amount per unit delivered to its border, but Iran wants thecost to be linked to the fluctuating international energy prices, saying the prices offeredby Pakistan and India is half of what it is looking for.