The Iranian Association of Petroleum Products Exporters leader has verified that the deal between Iran and Iraq to exchange oil for gas will halt any further restrictions imposed by the US. They also stated that this agreement could greatly benefit Iran with the current state of affairs in Iraq.
In an interview with the ISNA news agency, Hamid Hosseini discussed the exchange of Iranian gas for Iraqi crude oil. He explained that the agreement between the two countries is straightforward, with Iran exporting gas and electricity to Iraq at a rate of 10 to 15 million dollars per day.
Hosseini states that the US allows for exports to Iraq and occasionally approves payments for Iranian dues. However, in practice, a mechanism has been created by the US to make it difficult to pay these dues, resulting in some of the money remaining in Iraq.
According to the Iraqi foreign minister’s statements, there is still $18 billion or $11 billion (as per the Central Bank of Iran) in our bank accounts in Iraq. However, we are currently unable to access these funds, as shared by the head of Iran’s Petroleum Products Exporters Association.
According to Hosseini, Iran’s exports of gas and electricity decreased as temperatures in Iraq increased. This caused resentment in Iraq, prompting the Iranian government to seek quick solutions. The main issue was that Iraqi banks were not allowing payments to be made.
He said, “The Iraqis put a lot of pressure on the Americans. Eventually, they suggested using the barter option to avoid a similar situation in the future. It’s worth noting that this offer was made to the Iraqis before, but they declined it.”
An Iranian official emphasized that Iraq will adhere to the previous agreement where Iran will receive 30,000 barrels of crude oil and roughly 70,000 barrels of fuel oil per day. This equates to a total of 100,000 barrels per day, which could help meet some of Iran’s domestic demand.
Hosseini is of the opinion that the current issues in his country’s relationships with America and Iraqi banks can be resolved if a certain solution is implemented. He believes that in future negotiations, it’s possible to increase the quantities of crude oil or diesel oil to be exchanged based on the daily amount requested.
He suggested that due to the instability in Iraq and unfavorable banking conditions, it would be beneficial to explore alternative monetary resources outside of the Iraqi banking system. By collaborating with the Iraqis in this manner, we can increase our chances of success and benefit both parties.
The Prime Minister of Iraq, Muhammad Shia al-Sudani, has revealed that his country intends to engage in a bartering arrangement with Iran for gas in exchange for crude and black oil. This move is aimed at avoiding any conflicts with the sanctions imposed by the United States, which currently has a complex mechanism in place for negotiations and approvals.
Iraq heavily relies on Iranian gas to power its stations. However, due to the US sanctions on Tehran, Baghdad is unable to directly pay for the imported gas. Instead, Tehran must use the funds to purchase food or health commodities.
The mechanism for supplying Iraq with necessary resources is complicated and frequently causes delays. Iran has been known to halt the provision of supplies, which account for one-third of Iraq’s requirements, in an attempt to prompt Baghdad to pay outstanding debts.
A representative from the US State Department confirmed on Thursday that the United States is taking measures to prevent any negative impact on Iraq as a result of its sanctions against Iran.
A representative, who chose to remain anonymous, released a statement to Al-Hurra TV. The statement explained that there are frequent discussions with officials in Iraq regarding the continuing sanctions against Iran due to their nuclear activities.
The spokesperson emphasized that the notion of US sanctions on Iran leading to a reduction in gas supplies to Iraq is completely untrue.
According to the spokesperson, Iran’s restriction of gas supplies is an attempt to coerce and manipulate the Iraqi government and its people. The spokesperson declined to comment on any rumors of a barter deal between Iraq and Iran and directed further inquiries to the Iraqi government.
Lately, Iraq has been experiencing more frequent power outages due to a decrease in gas supply from Iran. This comes at a time when temperatures in Baghdad and southern Iraq have reached up to fifty degrees Celsius, causing frustration and anger among the people.