US extends waiver for Iraqi energy imports from Iran
ERBIL, Kurdistan Region – The US Department of State has granted Iraq another 120-day waiver to import energy from Iran, despite rising tensions between Iran and US allies in the gulf region. The new waiver, originally reported by the Iraq Oil Report, allows Iraq to continue to import electricity and gas from its neighbour.
This is the fifth waiver Iraq has received since the US re-imposed sanctions on Iran last November, after Washington withdrew from the Joint Comprehensive Plan of Action (JCPOA), also known as the 2015 Iran nuclear deal, in May.
The purpose of the waivers was to give Iraq time to gradually reduce their reliance on Iranian electricity and energy imports.
According to Iraq Oil Report, the new waiver was finalized on Tuesday, one day before the previous one expired.
Iraq suffers chronic power shortages. Years of mismanagement, corruption, and crumbling distribution networks have contributed to a defective power grid and dependency on Iranian energy imports.
Iraq imports about 1,300 MW of electricity from its neighbour each year, accounting for nearly one third of its supply.
The Islamic Republic’s considerable influence in Iraq extends far beyond the energy sector. Tehran backs Iraq’s powerful Popular Mobilization Forces (PMF), also known as Hashd al-Shaabi. The militias, which were formed to fight the Islamic State (ISIS), now have some of their leaders in the Iraqi parliament. Head of the Fatih Coalition in the parliament and PMF leader Hadi al-Ameri fought with Iran in the Iran-Iraq war in the 1980s.
Baghdad has sought to maintain good relationships with both the US and Iran, and keep their conflict off Iraqi soil, as tensions between the two continue to mount. The US accused Iran of being behind drone attacks on the Saudi oil installations in September. Iran strenuously denied the allegations.
A series of attacks on oil vessels in the Persian Gulf in May and June sparked fears for the freedom of navigation in the strategic waterway of the Strait of Hormuz, prompting the US to form a maritime security coalition for the gulf in August. So far, Britain, Australia, Saudi Arabia, Bahrain, and the UAE have joined.
Iran has been trying to drum up support for its own alliance, the Hormuz Peace Endeavour (HOPE), but the initiative appears to be dead in the water.
Iraq officially rejected an invitation from Washington to join the US maritime security coalition in September.
This is the fifth waiver Iraq has received since the US re-imposed sanctions on Iran last November, after Washington withdrew from the Joint Comprehensive Plan of Action (JCPOA), also known as the 2015 Iran nuclear deal, in May.
The purpose of the waivers was to give Iraq time to gradually reduce their reliance on Iranian electricity and energy imports.
According to Iraq Oil Report, the new waiver was finalized on Tuesday, one day before the previous one expired.
Iraq suffers chronic power shortages. Years of mismanagement, corruption, and crumbling distribution networks have contributed to a defective power grid and dependency on Iranian energy imports.
Iraq imports about 1,300 MW of electricity from its neighbour each year, accounting for nearly one third of its supply.
The Islamic Republic’s considerable influence in Iraq extends far beyond the energy sector. Tehran backs Iraq’s powerful Popular Mobilization Forces (PMF), also known as Hashd al-Shaabi. The militias, which were formed to fight the Islamic State (ISIS), now have some of their leaders in the Iraqi parliament. Head of the Fatih Coalition in the parliament and PMF leader Hadi al-Ameri fought with Iran in the Iran-Iraq war in the 1980s.
Baghdad has sought to maintain good relationships with both the US and Iran, and keep their conflict off Iraqi soil, as tensions between the two continue to mount. The US accused Iran of being behind drone attacks on the Saudi oil installations in September. Iran strenuously denied the allegations.
A series of attacks on oil vessels in the Persian Gulf in May and June sparked fears for the freedom of navigation in the strategic waterway of the Strait of Hormuz, prompting the US to form a maritime security coalition for the gulf in August. So far, Britain, Australia, Saudi Arabia, Bahrain, and the UAE have joined.
Iran has been trying to drum up support for its own alliance, the Hormuz Peace Endeavour (HOPE), but the initiative appears to be dead in the water.
Iraq officially rejected an invitation from Washington to join the US maritime security coalition in September.