Iraq pays overdue debts of $10 billion to Iran
A gas flare on an oil production platform is seen alongside an Iranian flag in the Gulf. Photo: Reuters
Baghdad (IraqiNews.com) – The Head of the Iran-Iraq Joint Chamber of Commerce, Yahya Al-Eshaq, said on Monday that Iraq has paid all dues of $10 billion to Iran, Al-Arabiya News reported.
Al-Eshaq elaborated that Iraq has paid its overdue debts to Iran through the Trade Bank of Iraq (TBI), and the two countries have agreed that the money will be used for the purchase of goods that are not included in the embargo imposed on Iran, such as medicine, the Islamic Republic News Agency (IRNA) reported.
The Iranian official expressed that he is looking forward to seeing the trade volume between Iran and Iraq grow to $20 billion over the next few years.
Iraq agreed three weeks ago to pay $2.76 billion in gas and electricity debts to Iran after the United States granted an exemption from sanctions imposed on Iran.
Talks between the Iraqi Foreign Minister, Fuad Hussein, and US Secretary of State, Antony J. Blinken, during the Global Coalition to Defeat ISIS Ministerial Opening Session held in Riyadh, led to an arrangement regarding financial dues between Iraq and Iran, Sky News Arabia reported.
The Iranian Minister of Oil mentioned last May that the two countries agreed to extend two contracts to supply two main power plants in Baghdad and Basra with gas from Iran for five years, according to Mehr News Agency.
Iraq heavily relies on gas imports from Iran but has recently invested in many projects to start taking advantage of the associated gas being flared in oil facilities in the country.