U.S. lifts sanctions on Iranian companies participating in Shah Deniz project
By Gulgiz Dadashova
US President Barack Obama has lifted the sanctions imposed against the Iranian companies participating in the project on development of the Azerbaijani largest gas deposit Shah Deniz in the Caspian Sea.
On June 3, Obama approved a new Executive Order to further tighten U.S. sanctions on Iran and isolate the Iranian government for its continued failure to meet its international obligations.
The White House press service reports that providing material support to Iranian persons and certain other persons designated pursuant to Iran sanctions authorities that are included on the SDN List (in each case other than certain Iranian depository institutions). This provision includes an exception for certain Iranian depository institutions and certain activities relating to the pipeline project to supply natural gas from the Shah Deniz gas field in Azerbaijan to Europe and Turkey.
Overall, the Shah Deniz field has proved to be a secure and reliable supplier of gas to Azerbaijan, Georgia and Turkey as well as Europe.
The consortium developing Azerbaijan's giant Shah Deniz field in the Caspian Sea is considering both the Trans Adriatic Pipeline (TAP) and Nabucco West for gas export. The consortium will make its final decision on the pipeline route in June and a final investment decision by October 2013.
The Shah Deniz field, which is one of the world's largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas.
"The steps taken today are part of President Obama's commitment to prevent Iran from acquiring a nuclear weapon, by raising the cost of Iran's defiance of the international community. Even as we intensify our pressure on the Iranian government, we hold the door open to a diplomatic solution that allows Iran to rejoin the community of nations if they meet their obligations. However, Iran must understand that time is not unlimited. If the Iranian government continues down its current path, there should be no doubt that the United States and our partners will continue to impose increasing consequences," the report reads.