Five US congressmen wrote a letter on Wednesday to President Joe Biden, urging Washington to block Iraqi Oil Minister Hayan Abdul-Ghani from attending events in the country; they cited "multiple public reports," accusing him and other Iraqi officials of participating in industrial-scale sanctions evasion on behalf of the regime in Iran."
"[E]verything that is said in the letter has no basis," the Iraqi oil ministry said in a statement, adding that Iraq adheres to "the highest standards of transparency" in oil production and exportation - all data is "published regularly and in-detail through official channels."
In late August, Abdul-Ghani announced plans to visit the United States to promote investment in Iraq’s gas sector, offering 10 gas blocks that went unsold in a recent licensing round.
The ministry said claims of assisting Iran to evade sanctions are "baseless allegations," adding that Iraq’s energy dealings with Iran are "in coordination and understanding with friends in the United States" under transparent contracts.
Washington repeatedly has renewed four-month waivers to help Iraq bypass existing US sanctions on Iranian exports. Iraq is heavily dependent on gas imports from neighboring Iran to prop up its electricity production. The waivers are intended to act as a short-term stopgap until Iraq can wean itself off of Iran for its energy needs.
The US lawmakers also expressed concern that Iraq’s oil sector is being exploited by Iran-backed militia groups and the Islamic Revolutionary Guard Corps (IRGC), who are using the scheme to generate funds and bypass sanctions, thereby allowing Iranian oil to be sold on the global market disguised as Iraqi exports.
It also pointed to the control of Iraqi fuel oil by companies tied to Asaib Ahl al-Haq (AAH), a group designated as a terrorist organization by the US State Department. AAH operates within the Iranian-backed Popular Mobilization Forces (PMF).
The letter cited a report by the Washington Institute of Near East Policy estimating that the alleged operation nets $1 billion annually.
Although it is one of the world’s largest oil-producing countries, Iraq is still dependent on Iran's oil to provide electricity. Iraqi Prime Minister Mohammed Shia’ al-Sudani has vowed to develop the country’s gas sector and achieve self-sufficiency within the next five years.
The letter also noted that the Iraq-Turkey pipeline, which Iraq's oil ministry “refuses to reopen,” remains closed, impacting oil exports from the Kurdistan Region and over $5 billion in US investment. Exports stopped in March 2023 after a court ruled Ankara had breached a 1973 agreement by allowing Erbil’s independent oil exports. Despite ongoing talks between Kurdish, Iraqi, and Turkish officials, exports remain suspended, and several international oil companies have halted production.
