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Chinese bank pulls out of Pakistan-Iran pipeline project

Discussion in 'South Asia & SAARC' started by BlueOval, Mar 15, 2012.

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  1. BlueOval

    BlueOval Captain SENIOR MEMBER

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    China'slargest bank has backed out of a deal to finance a proposed Iran-to-Pakistan gas pipeline that is opposed by the United States, a potential sign of the lengthening reach of U.S. economic sanctions on Iran.

    Pakistani officials confirmed Wednesday that Industrial and Commercial Bank of China had withdrawn from plans to head a consortium that would finance the $1.6-billion Pakistani portion of the cross-border pipeline, apparently over concern that the bank could be excluded from the U.S. economy.

    The move suggests that even Chinese companies, which have staunchly resisted U.S. and European efforts to punish Iran for its nuclear program, are beginning to bend to the sanctions on Tehran. China's unwillingness to fully cooperate had been one of the greatest challenges to the international effort to put economic pressure on Iran.

    China's decision is a setback for the Pakistani government, which fears that dire energy shortages could lead to civil unrest as well as economic strain.

    Pakistani officials said they would press ahead with the project, which would deliver more than 750 million cubic feet of natural gas per day from Iran's South Pars field. They said they would find replacement financing.

    "There are always a multiplicity of funding sources which are available for any project," Pakistani Foreign Minister Hina Rabbani Khar told reporters in Islamabad, the capital. "This is a fairly viable project and we hope we will not have any problem in trying to find ways and means of ensuring its funding."

    Secretary of State Hillary Rodham Clinton has warned that there would be "damaging consequences" if Pakistan continued with the pipeline because U.S. sanctions bar American financial institutions and companies from doing business with any concerns that have ties to Iran. The U.S. and its allies believe Iran is attempting to obtain nuclear weapons, despite Tehran's insistence that its nuclear research is for peaceful purposes.

    Washington backs an alternative pipeline project that would transport natural gas from Turkmenistan through Afghanistan and into Pakistan and India. But because of the war in Afghanistan, it's unclear whether that pipeline will be built.

    China has questioned the legitimacy of unilateral national sanctions on Iran, and several Chinese energy companies have ignored them.

    But Chinese financial institutions that do business with the United States apparently don't want to risk those dealings.

    "U.S. banks increasingly are not willing to do business with foreign financial institutions doing business with Iran," said Mark Dubowitz, an energy specialist at the Foundation for Defense of Democracies, a nonpartisan think tank.

    http://www.latimes.com/news/nationworld/world/la-fg-pakistan-china-pipeline-20120315,0,2392636.story
     
  2. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    its a bank right, they need to keep the funds mobile.
     
  3. RAGE

    RAGE 2nd Lieutant FULL MEMBER

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    Deeper than sea, higer than mountain.. but when money matters, they run away.. :LMAO::LMAO:
     
  4. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    In 2010 Pakistan wanted a loan of 3 Billion US $ from China,
    Chinese Reply " First pay off the earlier Loans " :mrgreen:
     
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  5. KAUTILYA

    KAUTILYA Lieutenant SENIOR MEMBER

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    My thoughts exactly!! You took away those words from my mouth!!:smitten:
     
  6. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    But when Pakistan says Deeper than sea, higher than mountain
    dont they contradict themselves,
    How can it be Deeper than sea AND higher than mountains at the same time.
    (JUST MESSING AROUND :mrgreen:)

    No wonder China is playing Pakistan for a Tool of Regional balance.
     
  7. KAUTILYA

    KAUTILYA Lieutenant SENIOR MEMBER

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    By this time China should have understood that Pakistan which in itself is horribly imbalanced can never be a tool for regional balance and that too against India.Moreover the US have come to the forefront as well and are taking care of Pakistan in their own way.That day is not far away when one would actually see Pakistan selling its entire Nuclear arsenal to the US for food and water.In such a situation it leaves India with only China to take care of.The Chinese policies goes on to show their immaturity.:angry::angry:
     
  8. tilopa

    tilopa Lieutenant SENIOR MEMBER

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    gali gali mein shor hai mullah aur chini bhai bhai hai
     
    Last edited: Mar 15, 2012
  9. KAUTILYA

    KAUTILYA Lieutenant SENIOR MEMBER

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    Hey people!!Just watch this video from Pakistan!!:laugh:
    [video=youtube_share;fXJVLDG4aPM]http://youtu.be/fXJVLDG4aPM[/video]
     
  10. MINGXIA

    MINGXIA REGISTERED

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    It is arrangement btwn a " company" and they backed on financial interests.

    The friendship doesnt end in withdrawal of a company. Indians get happy on news like this.:tongue:
     
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  11. DaRk KnIght

    DaRk KnIght Lt. Colonel ELITE MEMBER

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    ^^^You didnt get the point. Chinese bank could not stand against US pressure and hence decided to leave the project.
     
  12. KAUTILYA

    KAUTILYA Lieutenant SENIOR MEMBER

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    In accordance with the international and UN sanctions that have been imposed on Iran,if any particular bank enters into any transactions with Iran than in that case all its other branches in the countries that have imposed the sanctions would have to be shut down.Thus the Chinese bank had no other option other than pulling out.
     
  13. MINGXIA

    MINGXIA REGISTERED

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    yes they couldnt. one which can withstand will help them again. just wait and see.:cheers:

    same with India. :dumbhorse:
     
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  14. DaRk KnIght

    DaRk KnIght Lt. Colonel ELITE MEMBER

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    Nope. We are not following US sanctions on Iran. We will only follow UN sanctions. India has increased its crude buying from Iran.
     
  15. tilopa

    tilopa Lieutenant SENIOR MEMBER

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    :fie:
    naaa...india not complementing with US sanctions but UN sanctions.India has just increased the crude oil import from iran and also has started using Chahbahar port.
     
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