US calls on Iraq to stop relying on Iranian energy supplies
Baghdad (IraqiNews.com) – The spokesperson of the US Department of State, Tammy Bruce, said on Thursday that the US administration is urging the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible.
During a press briefing, Bruce added that the US administration welcomes the Iraqi prime minister’s commitment to achieve energy independence.
In terms of the Iraq sanctions waiver for Iran gas imports that expired on March 8, Bruce explained that the US administration is reviewing all existing sanctions waivers that provide Iran any degree of economic or financial relief.
In December, the United States extended a 120-day waiver that permits Iraq to pay Iran for energy imports.
The United States is trying to lessen Iran’s influence in the region, believing that a safe, sovereign, and stable Iraq is essential to these endeavors, according to the principal deputy spokesperson of the US State Department, Vedant Patel.
Since 2018, the US State Department has allowed Iraq to buy power from Iran while it continues to build up its own domestic generation capacity.
Tehran can only use the funds for non-sanctionable transactions, such as purchasing food and agricultural items for humanitarian purposes.
The United States has consistently granted exemptions to Iraq to enable it to fulfill its immediate energy requirements without violating US sanctions.
Baghdad has been urged by Washington to lessen its reliance on Iranian energy and natural gas while stiff sanctions are still in place against Tehran.
The United States has placed sanctions on Iran due to Tehran’s nuclear program and backing for extremist groups.
Iraq is the first destination for Iranian exports, as the value of Iranian exports to Iraq between March 2022 and March 2023 reached $10.23 billion.
Gas imports from Iran are important for Iraq to generate electricity. However, US sanctions imposed on Iran make it difficult for Baghdad to pay for the Iranian gas.
The US sanctions imposed on Iran force Iraq to pay for 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.
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.
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