• العربية
  • فارسی
BrandBrand
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Live TV
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Live TV
  • Theme
  • Language
    • العربية
    • فارسی
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Live TV
All rights reserved for Volant Media UK Limited
volant media logo

Iraq To Pay Long-Standing $2.7b Energy Debt To Iran

Maryam Sinaiee
Maryam Sinaiee

Iran International

Jun 10, 2023, 22:02 GMT+1Updated: 18:08 GMT+1
Iraqi Foreign Minister Fuad Hussein speaks during a meeting with US Secretary of State Antony Blinken in Riyadh, Saudi Arabia, June 8, 2023.
Iraqi Foreign Minister Fuad Hussein speaks during a meeting with US Secretary of State Antony Blinken in Riyadh, Saudi Arabia, June 8, 2023.

A senior Iraqi official has confirmed that his country has acquired a sanctions waiver from the US to pay $2.7 billion of its debt for gas and electricity to Iran.

Speaking to Reuters, the official who spoke on condition of anonymity because he was not authorized to speak to the media, said Iraqi Foreign Minister Fuad Hussein was given the clearance during a meeting with US Secretary of State Antony Blinken on the sidelines of the Riyadh Conference on Thursday.

The Iraqi foreign ministry source said that the funds will be transferred through the Commercial Bank of Iraq and confirmed that the money will be used for Iranian pilgrims' expenses and foodstuffs imported by Iran.

Iranian officials have claimed that the money in Iraqi banks could be as much as $10 billion or more. Yahya Al-e Eshaq, the head of the Iran-Iraq chamber of commerce, was quoted as saying by the local media Saturday that the Iraqi debt is between $7 to $8 billion but only $2.7b has been released and that part of the funds has been earmarked for pilgrims and another portion has been used to purchase basic goods.

100%
Yahya Ale Eshaq, the head of the Iran-Iraq chamber of commerce
Yahya Ale Eshaq, the head of the Iran-Iraq chamber of commerce

According to the semi-official Iranian Students News Agency (ISNA), Al-e Eshaq also told the media that the payment of the funds to Iran will have a positive impact on Iranian markets, including the foreign exchange and basic goods markets, probably stabilizing them.

Iraq which is heavily dependent on gas and electricity imports from Iran has been in arrears in its payments to Iran since the US government under President Donald Trump imposed banking sanctions on Tehran in 2018, that can target third countries for transferring dollars to Iran.

In late May, a source with direct knowledge of secret talks between Tehran and Washington on the release of Tehran's frozen assets in Iraq and South Korea had told Iran International that the negotiations could result in a deal soon but the implementation of the deal could take time.

South Korea also holds $7 billion of Iran's funds, which it owes for importing Iranian oil prior to full US sanctions imposed in May 2019.

Iran is expected to show more flexibility on issues related to its nuclear program in exchange for the release of its funds in Iraq, and free hostages, presumably US citizens ,but probably also other western hostages with dual nationality, in exchange for its assets in South Korea, the source said.

After 18 months of talks to revive the JCPOA came to a halt in September, the Biden administration has been saying it is no longer focused on the issue and has listed a few conditions Iran must meet, nicknamed by the media as JCPOA Plus.

Iraqi Foreign Ministry spokesperson Ahmed Al-Sahhaf said in a brief statement that Hussein had made progress "regarding financial dues between Iraq and Iran during his discussion with his American counterpart in Riyadh" when asked about the funds.

With Reporting by Reuters

Most Viewed

Iran court sentences 21-year-old protester to death
1

Iran court sentences 21-year-old protester to death

2

Iran says US tone shifts but demands still block talks

3

'No geographic limits': Tehran projects readiness for all-out war

4

Arab states demand response from Iran as fears of wider war dominate Bahrain summit

5
PODCAST

Netanyahu or not, the next move on Iran may be Trump's

Banner
Banner

Editors' Pick

  • Iran says US tone shifts but demands still block talks

    Iran says US tone shifts but demands still block talks

  • Halloween gathering in Tehran ends in arrests and police crackdown

    Halloween gathering in Tehran ends in arrests and police crackdown

  • Netanyahu or Eisenkot? Tehran sees little difference on war
    INSIGHT

    Netanyahu or Eisenkot? Tehran sees little difference on war

Banner
Banner
Banner
Banner

Spotlight

  • Residents describe struggle to afford basic needs as Iran inflation hits 88.7%
    VOICES FROM IRAN

    Residents describe struggle to afford basic needs as Iran inflation hits 88.7%

  • Netanyahu or not, the next move on Iran may be Trump's
    PODCAST

    Netanyahu or not, the next move on Iran may be Trump's

  • CSIS warns Iran-related activities targeting Canada likely to continue in 2026

    CSIS warns Iran-related activities targeting Canada likely to continue in 2026

  • Talks or resistance? Iran's factions differ over path out of crisis
    INSIGHT

    Talks or resistance? Iran's factions differ over path out of crisis

  • Tehran refuses to budge as diplomacy races against war

    Tehran refuses to budge as diplomacy races against war

  • New Baha'i memoir recounts life inside Iran's prisons

    New Baha'i memoir recounts life inside Iran's prisons