Iraq signs an agreement with Iran to barter oil for gas


The Iraqi Council of Ministers’ information office has reported that Baghdad and Tehran have agreed to exchange Iranian gas for Iraqi crude oil.
According to the statement, Iraq aims to find alternatives to the Iranian gas it imports to generate electricity. The plan includes short-term and medium- and long-term solutions, such as importing gas from Turkmenistan and Qatar.
On Tuesday evening in Baghdad, an agreement was signed to exchange imported Iranian gas used in power stations for Iraqi crude and black oil.
According to a statement, several days of negotiations involving delegations and technical committees from both countries they have reached an agreement between the two nations.
According to Iraqi Prime Minister Muhammad Shia al-Sudani, Iran has decreased its gas exports to Iraq by over 50% since July 1st. This is because Baghdad could not secure approval from the United States to use the money owed to Iran. However, Tehran has agreed to resume gas exports in exchange for Iraqi crude oil.
Under the new agreement, Iraqi power stations will be restarted, and Iraq will pay off its debts to Iran.
According to Al-Sudani, Iraq has accumulated over 11 billion euros in debt to Iran for purchasing gas in the past years. Iraq plans to offer crude oil to Iran in exchange for the gas to resolve the issue of US approval for payments to Tehran.