So Much for Sanctions – Iran signs $3.3-billion natural gas deal with China

March 15, 2009

(ChattahBox) — Last Thursday, the Obama administration extended U.S. sanctions for another year, because of the nature of Iran’s nuclear energy program and its support for militant groups opposed to Israel. Washington has enforced embargoes on doing industrial-scale business with Iran since the 1990s, by barring foreign companies that do more than $10 million a year of business with the Islamic Republic from operating in the U.S. But without the co-operation of countries like China, Russia and India, Iranian President Mahmoud Ahmadinejad dismissal of the latest sanctions as “childish,” seem to be sadly true.

Iran turned around and announced a $3.3-billion natural gas deal with China on Saturday, which pretty much deflates the chance economic sanctions will pressure Tehran to bow to Washington’s demands on its nuclear program. Iranian state television quoted a senior government official as saying the deal with a Chinese consortium, eventually include an unnamed European country as a partner. Under the three-year deal, China will help develop the South Pars field, a sprawling cavity beneath the Persian Gulf seabed that is part of what geologists describe as the world’s largest natural gas reservoir.  The Chinese company will build a line to liquefy gas in Phase 12 of the giant field in southern Iran. In January, Iran and China signed a separate 1.76 billion dollar contract for the initial development of the North Azadegan oil field in western Iran.


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