Baku, Azerbaijan, Nov. 2
By Fatih Karimov – Trend
Iraq owes Iran some $1 billion for electricity import, Houshang Falahatian, the Islamic Republic’s deputy energy minister, said.
The two sides earlier agreed that the debts to be cleared in 10 installments, but no installment has been paid so far, Falahatian said, Mehr news agency reported Nov. 2.
The outstanding debt is mainly related to Iran’s electricity export to Iraq during last year as well as some deferred payments, he added.
He further said that the two parties have launched a fresh round of negotiations regarding the issue.
Falahatian said that oil price fall which has led to sharp fall in Iraqi administration’s revenues is main reason behind the delay.
He also said that the Islamic Republic continues electricity export to the neighboring country amid the outstanding debt.
Iran exported 9.88 billion kWh of electricity last fiscal year (ended March 2016), of which 69.1 percent went to Iraq.
Last month Iran also urged Iraq to pay off its debts over constructing a joint gas pipeline with the Islamic Republic.
Ali Kardor, an Iranian deputy oil minister, has said if Baghdad fails to settle its outstanding debts, Tehran will not deliver gas to Iraq.