US Expands Iraq-Iran Electricity Waiver But Questions Remain On Barter Deal

21 Jul 2023 Issue: 66 / 29 By: Yesar Al-Maleki

The US has expanded a waiver permitting Iraq to pay Iran for electricity supplies in a bid to ease Iranian political pressure on Baghdad. The development comes as Baghdad is considering supplying Iran with heavy-sour Qayara crude as part of a potential oil-for-gas barter. But with key details undecided, prospects of implementation are slim.

The US government has eased restrictions on Iraqi payments to Iran for electricity imports in a move which coincides with Baghdad stating an intention to implement a controversial oil-for-gas barter agreement with the Islamic Republic (MEES, 14 July). The waiver may help Iraq unfreeze additional funds for Iran to utilize for “humanitarian” imports such as agricultural commodities, food and medicine, and is designed to ease Iran’s political leverage over Baghdad.

A US diplomatic source confirms that Secretary of State Antony Blinken this week signed a 120-day national security waiver permitting Iraq to pay Iran for crucial imports of electricity supplies. The previous waiver signed in April was approaching expiry. (CONTINUED - 1158 WORDS)