Israel Matzav

Sanctions? What sanctions?

A German-Austrian company confirmed on Monday that it is providing 'advice and planning work' to Iran in connection with an oil pipeline from Iran to Pakistan, which is likely in violation of US and EU sanctions on Iran.

“Advisory and planning engineers” are working on the project, Rüdiger Ophoven, a spokesman for ILF’s gas and oil department, told The Jerusalem Post on Monday. He stressed that ILF is only involved in the Pakistani side of the project.

The Pakistan paper The Nation reported on Sunday that “according to the secretary of petroleum, Pakistan has offered $250 million to a German company, ILF Engineering, for laying the gas pipeline inside its territory.

The gas pipeline would be completed till 2014, the secretary added.”

Iran’s Persian- and English-language press reported extensively on the pipeline project and Germany’s role in its development.

When asked about the value of ILF’s contract, Ophoven told the Post that such a project is “less than 10 million euros.”

He said he did not know if ILF’s legal department had examined whether the deal violated US, UN or EU sanctions.

The United States pressed Pakistan in 2009 to refrain from entering into a pipeline agreement with Iran. However, the Pakistani government moved forward with its Iranian partners.

Austria and Germany are considered by experts in Europe to be the weakest links in the enforcement of the sanctions regime targeting Iran. Germany remains Iran’s most important EU trade partner, with an annual bilateral trade of roughly 4 billion euros.

Ophoven could not confirm or deny whether German regulators had approved the deal with Pakistan.

But these sanctions are going to stop Iran dead in its tracks if we only give them enough time - eh Mr. Obama?

Labels: German-Iranian trade, Iran sanctions regime

posted by Carl in Jerusalem @ 10:38 AM