International commercial arbitration: Understanding the complexity of Iran-Pakistan gas pipeline project

Authors

  • Muhammad Umar Ashfaq Scholar of LLM Corporate and Commercial law University of London Author
  • Riffat Ashraf MS Scholar, International Relations Lahore College for Women University (LCWU), Lahore, Punjab, Pakistan Author
  • Prof. Dr. Shabnam Gul In-charge Department of International Relations Lahore College for Women University (LCWU), Lahore, Punjab, Pakistan Author

Keywords:

Iran-Pakistan Gas Pipeline, International Commercial Arbitration, Economic Sanctions, Energy Project, Geopolitical

Abstract

The Iran-Pakistan Gas Pipeline (IPGP) Project, a significant infrastructure venture, has dealt with different challenges, such as economic pressures, political tension and delays in its execution. Among the core unclear issues is the relevance of international commercial arbitration in bridging differences emerging from these challenges, mainly in relation to sanctions, investment, and contract breaches. Even with the importance of the project, there is absence of comprehensive analysis on how arbitration practices have been carried out to resolve conflicts, in which manner geopolitical factors molding arbitration outcomes, and in what ways legal frameworks like international conventions influence dispute resolution. This research will investigate how these factors entangle the arbitration procedure, affect tribunal decisions, and influence the execution of arbitral awards. The study aims to probe these gaps by analyzing the complexities of international commercial arbitration in terms of the Iran-Pakistan gas pipeline (IPGP) project, concentrating on its political, economic and legal implications. By examining these attributes, this study aims to provide a thorough grasp of the significance of arbitration in overseeing complex international infrastructure ventures, sharing perspective into practical and legal challenges encountered by states and corporations engaged in such ventures.

Downloads

Download data is not yet available.

References

Abbas, R., Rashid, M. A., & Bilal, F. E. (2022). Disputes arising out of foreign direct investments in Pakistan: A new look at legal and political issues. Pakistan Journal of International Affairs, 5(2).

Ahmad, I. (2010, June 18). Critical choice: Pakistan’s quest for energy. Weekly Pulse, 18-24.

Barraclough, A., & Waincymer, J. (2005). Mandatory rules of law in international commercial arbitration. Melbourne Journal of International Law, 6.

BBC News. (2013, November 8). Q&A: Iran sanctions. Bbc. http://www.bbc.co.uk/news/world-middle-east-15983302

Bederman, D. J. (1990). Ministry of Defense of the Islamic Republic of Iran v. Gould Inc., 887 F.2d 1357; certiorari denied, 110 S. Ct. 1319. American Journal of International Law, 84(2), 556-560. https://doi.org/10.2307/2202930

Burley, Z. (2015). The idea of arbitration. Yearbook on Arbitration and Mediation, 7, 356.

Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), 1958.

Council Regulation (EU) 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine [2014] OJ L229/1.

Damrosch, L. F. (1986). The Iran-United States Claims Tribunal 1981-1983. Columbia Law School Faculty Scholarship. https://scholarship.law.columbia.edu/cgi/viewcontent.cgi?article=5138&context=faculty_scholarship

De Brabandere, E., & Holloway, D. (2016). Sanctions and international arbitration.

Freshfields. (2024, April 13). A decade of investment treaty claims arising from Russia’s invasion of Ukraine: Lessons and expectations.

Ghodoos, F. (2014). Combatting economic sanctions: Investment disputes in times of political hostility, a case study of Iran. Fordham International Law Journal, 37(6), Article 4.

Gillis, E., et al. (2023). Economic sanctions and arbitration: A practical guide for parties, counsel, and arbitrators. Uia Journal.

Haider, Z. (2010, March 17). Pakistan, Iran sign deal on natural gas pipeline. Reuters. http://www.reuters.com/article/2010/03/17/us-Pakistan-iran-idUSTRE62G12C20100317

Ipri. (2024). Iran and Pakistan Gas Pipeline – Options for Pakistan.

Iqbal, A. (2012, January 27). US wants Pakistan to drop IP project. Dawn. http://www.dawn.com/2012/01/27/us-wants-Pakistan-to-drop-ip-project.html

Iran-U.S. Claims Tribunal. (n.d.). Cases. https://iusct.com/cases/

Islamabad Policy Research Institute. (2013). Geopolitical and economic imperatives of IP and TAPI gas pipelines. https://ipripak.org/ann/gigp.pdf

Kabir, H. (2010, August 15). Iran invites Bangladesh to join cross-border gas grid. The Financial Express. http://www.thefinancialexpressbd.com/more.php?news_id=109098&date=2010-08-15

Khan, A. (2013, May 7). Ipi pipeline and its implications on Pakistan. Issi Publication. http://www.issi.org.pk/publication-files/1361514533_90594538.pdf

Kryvoi, Y. (2014, October 3). Russia’s Mistral deal under international sanctions – Will the dispute be arbitrable? CIS Arbitration Forum. Accessed September 2, 2015.

Lavranos, N. (2021). Gary B. Born: International Commercial Arbitration (Wolters Kluwer, 3rd ed., 3 volumes, 2021). European Investment Law and Arbitration Review Online, 6(1), 366-368. https://doi.org/10.1163/24689017_0601020

Lock, R. (2007). Alternative dispute resolution in energy disputes: A new formula for a new era? The Electricity Journal, 20(8), 78-90. https://doi.org/10.1016/j.tej.2007.08.006

Nation, The. (2013, March 13). Ip Gas Pipeline.

Perkovich, G., & Prasad, R. (2005, April 18). A pipeline to peace. The New York Times. http://www.nytimes.com/2005/04/18/opinion/18perkovich.html

Reuters. (2025, February 27). Russia court suspends foreign corporate rights of vodka producer Russian Standard. Reuters. https://www.reuters.com/business/retail-consumer/russia-court-suspends-foreign-corporate-rights-vodka-producer-russian-standard-2025-02-27/

Temple, D. (2007). The Iran - Pakistan - India pipeline: The intersection of energy and politics (IPCS Research Paper No. 8). http://www.ipcs.org/pdf_file/issue/1396977112IPCSResearchPaper8-David.pdf

U.S. Department of State. (n.d.). Iran-U.S. Claims Tribunal. https://www.state.gov/iran-u-s-claims-tribunal

United Nations. (1958). Convention on the Recognition and Enforcement of Foreign Arbitral Awards (adopted June 10, 1958, entered into force June 7, 1959), 330 U.N.T.S. 38.

Zaafir, M. S. (2012, April 2). PM’s Boao visit revives hope of China’s return to Ip pipeline.

Downloads

Published

2025-05-14

Data Availability Statement

The data that support the findings of this study are available from the corresponding author upon reasonable request.

Issue

Section

Articles

Categories