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Ending waiver to buy Iranian electricity causing temporary challenges: Iraq
The administration of US President Donald Trump rescinded a waiver on Saturday that had allowed Iraq to pay Iran for electricity, as part of the businessman-turned-politician’s “maximum pressure” campaign against Tehran, according to a State Department spokesperson.
The decision to let Iraq’s waiver lapse upon its expiration “ensures we do not allow Iran any degree of economic or financial relief,” the spokesperson said.
“The government is actively working on alternatives to sustain electricity supply and mitigate any potential disruptions,” Alaaeldin told Reuters. “Strengthening energy security remains a national priority, and efforts to enhance domestic production, improve grid efficiency and invest in new technologies will continue at full pace.”
Trump initially granted waivers to several buyers to meet consumer energy needs when he reimposed sanctions on Iran’s energy exports in 2018, citing its nuclear program and what the US calls its meddling in the Middle East.
His administration and that of Joe Biden repeatedly renewed Iraq’s waiver while urging Baghdad to reduce its dependence on Iranian electricity. The State Department spokesperson reiterated that call on Saturday.
“We urge the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible,” the spokesperson said.
The US has used the waiver review in part to increase pressure on Baghdad to allow Kurdish crude oil exports via Turkey, sources have told Reuters. The aim is to boost supply to the global market and keep prices in check, giving the US more room to pursue efforts to choke off Iranian oil exports.
Iraq’s negotiations with the semi-autonomous Kurdish region over the oil export resumption have been fraught so far.
In an interview on Friday, the US president claimed that he had sent a letter to Leader of Iran’s Islamic Revolution Ayatollah Seyyed Ali Khamenei and proposed to negotiate with Iran on a new deal.
Iran denied receiving the letter, reiterating its position of not negotiating with Washington due to its untrustworthy and bullying nature.
“Some foreign governments and domineering figures insist on negotiations, while their goal is not to resolve issues but to exert control and impose their own agendas,” Ayatollah Khamenei said on Saturday, dismissing the idea of negotiation with the US.