United States waives sanctions on Iran to allow Iraq to pay for electricity
The Dhi Qar Combined Cycle Power Plant near the Iraqi city of Nasiriyah. Photo: AFP
Baghdad (IraqiNews.com) – The US Secretary of State, Antony Blinken, signed a 120-day national security waiver allowing Iraq, which heavily depends on Iranian electricity, to deposit payments into non-Iraqi banks in third countries instead of restricted accounts in Iraq, a US official told Reuters.
The official who requested to remain anonymous said that the United States moved on Tuesday to let Iraq pay Iran for electricity via non-Iraqi banks, explaining that Washington, through this step, hopes to stop Tehran from forcing unpopular power cuts during the scorching summer in Iraq, Reuters reported.
Tehran is putting Baghdad under pressure to get US permission to disburse funds by stopping Iranian natural gas exports to Iraq, reducing Iraq’s ability to generate electricity, and forcing the country to cut off electricity during the hot summer, according to Reuters.
The US sanctions imposed on Iran force Iraq to pay for the Iranian electricity only through restricted bank accounts in Iraq, which Iran can use to purchase its humanitarian needs after obtaining permission from the United States.
Two weeks ago, the Iranian Minister of Economy, Ehsan Khandouzi, revealed that Iraq has pledged to facilitate Iran’s access to its frozen assets in Iraq, according to the Islamic Republic News Agency (IRNA).
The Head of the Iran-Iraq Joint Chamber of Commerce, Yahya Al-Eshaq, mentioned earlier 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, IRNA reported.
Talks between the Iraqi Foreign Minister, Fuad Hussein, and 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, according to Sky News Arabia.
Iraq heavily relies on gas imports from Iran but has recently invested in many projects to start taking advantage of flared gas and using renewable energy to generate electricity.