Iraq to seek US approval on Iranian gas before waiver expires, considers food-for-gas program

ERBIL (Kurdistan 24) – Two sources in the Iraqi government have claimed Baghdad and Tehran have agreed on a food-for-gas program and other energy supplies trade deal amid US sanctions on Iran, Reuters reported on Wednesday.

Upon instituting a second round of sanctions, the US granted Iraq a special waiver, allowing it to continue to pay for electricity imports for a limited amount of time. Iraq is heavily dependent on Iranian gas to fuel its power plants.

Iraqi officials have stated that the US decision is conditional on Iraq not using the dollar to pay for Iranian exports, adding that Baghdad has created a bank account to conduct the transactions using the Iraqi Dinar.

Nearly ten days after the reimposition of US sanctions, senior government and Ministry of Energy sources told Reuters Baghdad is seeking the Western power’s approval for Iraq to continue importing Iranian gas – used in its power plants – and that it required more time find an alternate supplier.

“The American deadline of 45 days to stop importing Iranian gas is not enough at all for Iraq to find an alternative source,” the first official reportedly said. The US gave Baghdad a 45-day time-limit before it may take measures against the Iraqi government for failing to respect the embargo.

“Stopping Iranian gas after the deadline will create a real power crisis. We need more time ... the Americans are completely aware of how desperately we need Iranian gas,” one of the sources stated.

Baghdad will submit a request to the US to allow it to import beyond the deadline, the second official said.

In exchange for the gas, Iraq is reportedly prepared to “pay food and humanitarian items for Iran.” 

“Iran accepted this proposal.”

Editing by Nadia Riva