Pakistan looks for sanctions loophole in Russian-funded gas pipeline
RT-Global Resource is a subsidiary of a Russian state conglomerate Rostec, a defense and technology corporation whose chief executive is under US and EU sanctions.
PAKISTAN: Economic coordination committee of the cabinet approves north south gas pipeline project with Russia. pic.twitter.com/Zgu2hAXiLr— TheInt'lSpectatorPK® (@KhanAsid_Speaks) April 12, 2016
According to the agreement with Pakistan, the Russian firm will spend $2 billion and own and operate the North-South pipeline for 25 years.
The pipeline is expected to handle 12.4 billion cubic meters of natural gas annually and will travel from Kasur in the north, which is close to the Indian border, to Nawabshah in the south-east.
The Russian contractor has suggested the project should be undertaken by a Special Purpose Vehicle (SPV) registered in Pakistan.
The Pakistani Ministry of Law is examining if it aligns with the intra-government agreement signed by the two countries last October.
Russia also wants guarantees Pakistan will buy a minimum of 34 million cubic meters of gas per day. The pricing has yet to be negotiated, reports the paper.