Iraq gets new waiver to pay Iran’s energy debts
The United States on Tuesday moved to let Iraq pay Iran for electricity via non-Iraqi banks, a US official said, a step Washington hopes may keep Tehran from forcing unpopular power cuts during the sweltering Iraqi summer.
US Secretary of State Antony Blinken signed a 120-day national security waiver allowing Iraq — heavily dependent on Iranian electricity — to deposit such payments into non-Iraqi banks in third countries instead of into restricted accounts in Iraq, the official told Reuters on condition of anonymity.
Monies put into non-Iraqi accounts, like those deposited into Iraqi banks, will also be restricted, still requiring US permission for Iran to get access to them and only for spending on humanitarian goods.
Tehran has in the past pushed Baghdad to secure US permission to release such funds by cutting Iranian natural gas exports to Iraq, limiting Iraq’s ability to generate power and forcing deeply unpopular
electricity cuts.
The latest waiver was expanded to permit payments to banks outside Iraq at the request of the Iraqi government, apparently in the hopes that this might transfer some of the pressure to other countries.
“The Iraqis have requested, and now we have agreed, to expand the waiver,” said the US official, saying this might help ensure better compliance with the US requirement that any disbursements be for humanitarian purposes.