ERBIL, Kurdistan Region – Washington has granted Iraq a second extension on a waiver exempting it from sanctions on Iran. For the next three months at least, Iraq will be free to continue importing energy from its neighbor.
“While this waiver is intended to help Iraq mitigate energy shortages, we continue to discuss our Iran-related sanctions with our partners in Iraq,” an unnamed US State Department official said, according to AFP.
Boosting Iraq’s domestic capabilities and diversifying its imports “will strengthen Iraq’s economy and development as well as encourage a united, democratic and prosperous Iraq free from malign Iranian influence,” the official added.
The US reimposed sanctions on Iran after withdrawing from the 2015 nuclear deal in May.
Last November, the US granted Iraq and several other countries a 45-day waiver to allow them time to gradually reduce their reliance on Iranian electricity and energy imports.
Iraq suffers chronic power shortages. Years of mismanagement, corruption, and old distribution networks have contributed to a defective electricity grid that fueled protests last summer in major cities.
Protesters in Iraq’s southern province of Basra demand investment in electricity and water infrastructure, summer 2018. File photo: AFP
Washington has repeatedly urged Baghdad to end its energy dependency on Iran. However, Tehran has sought to deepen its involvement.
Earlier this month, Iran’s Minister of Energy Reza Ardkanian told state news agency Tasnim that Iran wants to play a bigger role in rebuilding Iraq’s electricity infrastructure.
On February 8, Iran and Iraq inked a deal for Iraq to buy Iranian electricity for another year. Iran exports 1,200 megawatts of electricity to Iraq.
Hassan Rouhani, the Iranian president, landed in Iraq on March 11 for a three-day state visit, during which commercial and diplomatic ties between the two states were further cemented.
Sanctions targeting Iran’s oil and finance sectors have devastated the economy and send the currency tumbling.
Under pressure from both sides, Iraqi Prime Minister Adil Abdul-Mahdi has tried to balance relations with both the US and Iran.