US Feels Heat After Iran-Switzerland $42b Gas Deal-Tehran Times

TEhran Times ^ | May 4, 2008 | Staff

[freerepublic_or_die]

The US and its allies are worried that the sanctions regime against Tehran is under threat from a possible new wave of European investment in Iran’s strategically important gas sector.

Tehran has already concluded gas deals with Chinese and Malaysian companies – ending a protracted lull in investment in its energy sector – and has alarmed Washington by reaching an agreement with a Swiss group.

The dilemma threatens to expose the limited US influence over foreign companies strategic decisions.

Although Washington and its allies have convinced the United Nations Security Council to sign up to three sets of sanctions against Iran’s nuclear and missile sectors and banks, it has been unable to broaden such international measures into the key energy sector.

Now, the US fears that a 25-year supply agreement concluded in March between Elektrizitäts-Gesellschaft Laufenburg (EGL) of Switzerland and Iran could encourage other deals, particularly in the gas sector, despite American calls for tougher sanctions against Tehran over its controversial nuclear program.

The Swiss government says the deal could be worth up to €27bn ($42bn, £21bn). “The worry is that the Swiss deal will lead others, such as the Austrians, to confirm energy investments in Iran, and that companies like

[France’s] Total could then follow suit and sign contracts of their own,” said one western diplomat.

He pointed out that the EGL agreement ended a period in which European energy companies had largely confined themselves to agreeing only non-binding memoranda of understanding with Iran.

He added: “There is a lot of attention on sanctions on Iranian banks, but investment in the energy sector is much more important for Iran’s economy.” Iran has the world’s second-largest proven gas reserves, but exports far below its potential.

[freerepublic_or_die]

As this is the Tehran Times, it is quite easy to discount the preening braggadocio in which they seem so smug, pleased with themselves in having ooutmaneuvered the Great Satan once again.

IMHO,it is a fait accompli that the US will never allow Iran to gain nuclear capability by whatever means nececesary.

The more economic leverage, power the Iranians manage to accrue and consequentially the weakening of sanctions designed to moderate their relentless, hell-bent on march to acquire nuclear capability, the more they are going to force the US to exhaust whatever options available.

I say, let them preen, celebrate, congratulate themselves on once again getting to bloody the nose of the Great Satan. The phrase "He who laughs last laughs best" is what I feel, hope, we can look forward to in the very near future.

[infantrywhooah]

Selling their souls to the devil. And they will be left wondering what fell on them when the time comes to pay the piper.

Idiots.

[troy McClure]

Here is a idea.
Ban all Swiss citzens from entering the USA.

[endthematrix]

“It's just business”

[snowsislander]

If we insist on continuing on being the world’s greatest debtor nation, I think that it is safe to assume that our ability to apply economic influence is going to wane.

[RightWhale]

The dilemma threatens to expose the limited US influence over foreign companies strategic decisions

Cosmic joke. USA ceased to be a strategic factor in the early 70s when it hit peak oil.