Washington reveals the path of Iranian money owed by Iraq in foreign currency

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Matthew Miller, a spokesperson for the US State Department, has stated that a portion of the funds frozen in Iraqi banks that belong to Iran will be given to Oman.

During his press conference, Miller stated that this money is restricted for use in activities that are not sanctioned.

He stated that it was crucial to remove the money from Iraq, as it was being used by Iran to manipulate Baghdad, but did not elaborate on the specifics.

A representative from the US State Department confirmed that the expenditure of these funds requires authorization from the US Treasury Department.

On Monday, Nasser Kanaani, a representative of the Iranian Foreign Ministry, stated that Iraq has placed our funds in an Iraqi bank.

Kanani mentioned that officials from South Korea have made positive commitments regarding the release of funds. The visit of officials from neighboring countries is intended to assist in the restoration of the nuclear agreement, the removal of sanctions, and the release of frozen funds.

During a press conference, a representative from the US State Department confirmed that reports of the release of approximately $3 billion in Iranian funds previously withheld in Iraq were accurate.

During his press conference in June, Miller stated that this process is being implemented to facilitate humanitarian transactions. It’s worth noting that previous US administrations have also sanctioned such transactions in the past, in compliance with US regulations and in conjunction with the Iraqi government.

According to a senior official at the Iraqi Foreign Ministry, as reported by Reuters, Iraq has received approval from the United States to pay its debts of approximately $2.76 billion to Iran for gas and electricity purchases.

According to an unnamed official who spoke to Reuters on Saturday, Iraqi Foreign Minister Fuad Hussein received approval from the US after meeting with US Secretary of State Anthony Blinken during the recent Riyadh conference.

It’s important to note that Iraq relies on Iran for its energy supply, which is a result of years of conflict and war, as well as international sanctions.

The US sanctions on Iran’s oil and gas industry have created difficulties for Iraq to make payments to Iran for their purchases, causing a dispute between Tehran and Baghdad. As a result, Iran has frequently halted the gas flow in response to the outstanding debts in recent years.

In March of last year, Iran International received confidential communications from the Iranian Ministry of Foreign Affairs. These messages revealed the Trade Bank of Iraq’s strict policies regarding the release of Iranian funds that had been withheld. They also shed light on the conflicting stance of Ibrahim Raisi’s government on this matter.

A new document from Iran’s Foreign Ministry reveals that the “Trade Bank of Iraq” is refusing to fulfill Iran’s billion-dollar transaction requests. The bank is only willing to release Iran’s resources in small amounts for humanitarian reasons, and only with strict oversight from the US Treasury Department.