Baghdad, Tehran strike deal on debt settlement for gas imports

The Governor of the Central Bank of Iraq (CBI), Ali Al-Alaq, announced on Saturday that an agreement has been reached to resolve Iraq’s outstanding debts related to gas imports from Iran, employing an innovative approach.

According to reports from the Islamic Republic News Agency (IRNA), Al-Alaq disclosed that ongoing discussions aim to streamline the import process from Iran while adhering to the sanctions imposed by the United States on Iran.

The groundwork for this agreement was laid in August when Iraqi and Iranian oil ministers engaged in discussions to bolster Iranian gas exports to Iraq and address Baghdad’s accrued gas debts to Tehran.

In a bid to explore avenues for increased gas imports, a delegation from the Iraqi Ministry of Electricity embarked on a visit to Iran last June. As revealed by Ahmed Musa, spokesperson for the Iraqi Ministry of Electricity, Iran presently provides Iraq with 45 million cubic meters of gas, which is instrumental in sustaining Iraq’s electricity generation and facilitating the operation of additional power plants.

Moreover, Musa confirmed that Iran stands ready to further escalate gas exports to Iraq, heralding potential benefits for both nations in this pivotal energy partnership.