Iranian exports to Iraq expected to reach 9 billion USD

Baghdad (IraqiNews.com) – An Iranian official expressed his hope that the volume of the Iranian exports of petroleum and agricultural products to Iraq would be increased in the coming months to compensate for the current export deficit, according to statements cited by the Iranian Students News Agency (ISNA).

The head of the Iranian Oil, Gas, and Petrochemical Products Exporters’ Association, Hamid Hosseini, mentioned that Iran signed a four billion USD contract with Iraq to provide technological and engineering services, Tasnim news agency reported on Wednesday.

The contract can cover some of the shortfall in Iran’s exports to Iraq in the fiscal year ending on March 20, especially in the areas of manufacturing, technological and engineering services, and medical services, Tasnim mentioned.

According to statistics issued by the Iranian association, there is a clear decline in the Iranian exports to Iraq during the past eight months.  

“Currently, the volume of exports to Iraq, excluding electricity, is about 4.7 billion USD, while the value of the Iranian exports during the same period last year was 6.1 billion USD, Hosseini explained.

The Iranian official expected that his country’s exports to Iraq would increase again during the coming period, especially after the recent shortages in foodstuffs.

Hosseini added that the Iranian exports are expected to reach 8-9 billion USD as usual during the coming four months.

Around 45 percent of Iraq’s electricity is generated by natural gas imported from Iran.

Although the United States imposed sanctions on Iran to bar other countries from buying Iranian oil and gas, Iraq received exemptions from Washington to import Iran’s gas.