On Wednesday, the US warned Pakistan to "avoid any sanctionable activity" in connection with the project.

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Arguing baseless defenses such as breach of contract or fraud without good faith grounds to raise it is sanctionable and possibly perjury.

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As a result of this determination, significant transactions between foreign banks and the Central Bank of Iran for purchases of petroleum and petroleum products from Iran will be sanctionable as of June 28th.

WHITEHOUSE: The White House