Sanctions impeding Iran’s receiving gas, electricity export revenues from Iraq

Oil&Gas Materials 29 January 2020 11:14 (UTC +04:00)
Sanctions impeding Iran’s receiving gas, electricity export revenues from Iraq

BAKU, Azerbaijan, Jan. 29

By Elnur Baghishov - Trend:

The US sanctions against Iran are impeding the country’s receiving gas and electricity export revenues from Iraq, Spokesman of Iran’s Oil, Gas & Petrochemical Products Exporters’ Association (OPEX) Hamid Hosseini said, Trend reports referring IRNA.

Hosseini noted that gas and electricity export revenues are paid to the Central Bank of Iraq, adding that revenues worth $5 billion are on the bank’s account.

The spokesman said that Iran’s private sector can facilitate bringing export revenues to Iran from Iraq, and there are no problems in this area. However, the issue of bringing money for electricity and gas exports is different, because this is done through banks and this issue is related to government sectors of the two countries, Hosseini added.

“Iran has two agreements on gas and electricity exports to Iraq,” the spokesman said. “Iran and Iraq have developed a plan for the payment of funds obtained from gas and electricity exports.”

Hosseini noted that the Iraqi government is paying this amount in dinars to the Iraqi Central Bank. However, along with the US sanctions against Iran, there are bank problems in Iraq and there is no way to transfer this money to Iran, the spokesman said.

“According to the 10-month statistics (March 21, 2019 – Jan. 20, 2020), Iran’s exports to Iraq amounted to $8 billion,” Hosseini added.

The US imposed sanctions on Iran in 2018 and expanded the list of sanctions in several stages. The sanctions have had huge negative impact on Iran's economy.