Page 6 - DMEA Week 17 2020

DMEA COMMENTARY DMEA
US extends sanctions
waiver to Iraq
Iraq has another 30 days to import Iranian energy without incurring penaltiies
IRAQ
THE US has given Iraq another 30-day sanc- tions waiver, enabling imports of Iranian energy to continue without triggering dire economic penalties, according to two government officials familiar with the matter. A source in the US State Department was quoted as saying that “ this brief extension of the waiver would allow [Iraq] time for the formation of a credible government”.
With just two days remaining to the expira- tion of a thirty-day US waiver to import Iranian gas and electricity, the Iraqi Minister of Electric- ity has said it will take three to four years for the country to stop importing energy from Iran.
This is based on the premise that “the Iraqi government will enjoy full uninterrupted execu- tive authority and no interference from political entities and in an environment that is welcoming to investments and multinational participation”.
Washington has repeatedly granted waivers to Baghdad to allow the latter to keep importing Iranian gas and electricity despite US sanctions on Tehran. The last waiver was limited to a thir- ty-day exemption, which is about to expire.
Iraq was expected to invest $10bn in its oil and gas projects to end its dependency on Iran within four years. Nevertheless, none of the pro- jects have made any headway.
Speaking of the waiver, the US State Depart- ment concluded: “Once the [Iraqi] government is in place, the US will reassess whether to renew the waiver and for how long, and looks forward to resuming our co-operation with the govern- ment of Iraq to reduce Iraq’s dependence on unreliable Iranian energy imports”.
Meanwhile, Iran’s official statistics show a sig- nificant increase in the country’s electricity and gas exports, and Iraqi officials have made contra- dictory statements about energy imports from their neighbour.
For example, on April 20, a spokesman for the Iraqi Ministry of Electricity, Ahmed Al-Abadi, announced that Iraq had reduced its electric- ity and gas imports from Iran by 75% after approaching self-sufficiency in its own energy production.
Iraq has been a customer of more than 80% of Iran’s electricity exports. Iranian Ministry of Energy numbers show the country’s electricity exports increased by more than 28% in 2019, reaching more than 8TW per hour. However, Iran’s official statistics are always questioned by experts and are largely inconsistent with inter- national data.
Statistics from the National Iranian Gas Co.
P6
w w w . N E W S B A S E . c o m Week 17 30•April•2020