Pakistan look for alternatives as Russia crumbles to rising pressure from USA

Pakistan look for alternatives as Russia crumbles to rising pressure from USA

Wednesday, April 25, 2012: Pakistan government is searching for alternatives to finance the $1.5 billion Iran-Pakistan (IP) gas pipeline as hopes for funding from Russia fade in the face of mounting pressure from the US to stop
the project.

A similar situation was witnessed when a Chinese bank backed out of financing the vital gas supply project which may ease most of the energy shortage in the country.

A government official said, “In the alternative plan, the government is studying a joint investment formula, according to which the engineering, procurement and construction (EPC) contractors will be invited to provide some funds
for the pipeline.”

In talks held between Pakistani and Russian officials in the first week of April in Moscow, Pakistan asked Russia to either extend a loan or provide finished products and other material relating to the pipeline. Russia agreed to
respond to the proposal in two weeks, but no response has been received so far.

After the return of the delegation from Moscow, the government officials had, however, announced that Russia had agreed in principle to give financial and technical assistance for the pipeline.

“A reminder has been sent to Russia in this regard and it is to reply by April 30,” the official said. Petroleum Secretary Ijaz Chaudhry also confirmed that Russia had not yet responded to the proposal.

Pakistan approached Russia after a Chinese bank hinted at its inability to push ahead with financing the project amid increasing US pressure. Russia offered to finance the entire pipeline during a four-day visit of Foreign Minister
Hina Rabbani Khar to Moscow in February.

Short URL: https://www.newspakistan.pk/?p=20304

Posted by Wajahat Javed on Apr 26 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry