Baghdad reaches agreement with Tehran on debt settlement
A unit of South Pars Gas field in Asalouyeh Seaport, north of Arabian Gulf, Iran. Photo: Reuters
Baghdad (IraqiNews.com) – The Governor of the Central Bank of Iraq (CBI), Ali Al-Alaq, confirmed on Saturday that an agreement had been reached to settle his country’s debts related to gas imports from Iran through a new method.
Al-Alaq said that discussions are ongoing to regulate the import process from the Iranian side in a manner that does not violate the sanctions imposed by the United States on Iran, according to the Islamic Republic News Agency (IRNA).
The Iraqi and Iranian oil ministers discussed in August ways to enhance Iranian gas exports to Iraq, as well as clearing Baghdad’s outstanding gas debts to Tehran.
A delegation from the Iraqi Ministry of Electricity visited Iran last June to review ways to increase gas imports to Iraq.
The spokesperson of the Iraqi Ministry of Electricity, Ahmed Musa, explained that Iran supplies Iraq with 45 million cubic meters of gas, which helps Iraq produce the needed electric power and operate additional power plants.
Musa also illustrated that the Iranian side is ready to increase gas exports to Iraq.