Page 69 - IRANRptAug22

Iran tightens gas taps on Iraq in response to unpaid bills
Iran's supplies of gas to neighbour Iraq have been scaled down by 5mn cubic metres (m3) per day, limiting the operation of power plants and constraining electricity supplies to Iraqi consumers, according to Iraqi media reports.
Iraqi authorities confirmed on June 1 that Baghdad has not paid Tehran a $1.6bn debt owed for gas imports, Haqqin reported.
Debt repayment will be a key requirement in terms of keeping Iraqi power plants, and thus air coolers, running during the sweltering heat of the upcoming summer months. That was the scenario that played out last summer, when, after Iran squeezed gas supplies in response to debt non-payment, the sight of Iraqis cooling down in vehicles, engines running to keep the air conditioning on, became commonplace during the hottest weeks. Iraqis accused Iran of being quick to use the debt payment delays as an excuse to cut gas exports to Iraq, noting that Tehran was struggling to provide enough gas to Iran's grid to meet domestic needs.
“Iran demanded that Iraq pay its financial obligations to pay for gas. However, due to a delay in the adoption of the budget, as well as the blocking by parliament of a bill aimed at guaranteeing debt payments, there have been delays in payment,” the Iraqi Ministry of Electricity said in a statement. Despite its vast oil and gas reserves, Iraq remains dependent on imports to meet its energy needs.
Iran currently meets a third of Iraq's gas and electricity needs.
The Iranian gas supply stranglehold over Iraq may play into the hands of Baghdad’s southern neighbour and arch-rival of Iran, Saudi Arabia. It may see an opportunity to weaken Iran’s powerful influence over its neighbour by accelerating and expediting plans to export electricity to the Iraqis.
9.1.15 Defence sector news
Iran rattles US by carrying out second test of three-stage satellite launcher
Iran ranks among top 15 military spenders for first time in decades
Iran has carried out a second test of its Zuljanah three-stage satellite launcher that uses a combination of solid and liquid fuels, Iranian state TV reported on June 26.
The US contends that such long-range ballistic technology built to put satellites into orbit could also be deployed to launch nuclear warheads. Tehran denies the US claim.
"The third development phase of the Zuljanah satellite launcher will be based on a combination of information gained during today's launch," a defence ministry spokesperson told state TV. Officials did not state whether the test was deemed a success. State-run media broadcast footage of the 25.5-metre rocket blasting off.
The White House said the test launch was “unhelpful and destabilising.”
Iran ranked as the 14th largest military spender in the world last year, the first year in decades that it joined the top 15, the Stockholm International Peace Research Institute (SIPRI) said in its latest report.
Tehran raised its military budget for the first time in four years, to $24.6bn, marking an annual increase of 11%. It occurred despite economic hardship faced by a population assailed by the consequences of many years of sanctions in response to Iran’s nuclear programme.
The defence budget of Iran's elite Islamic Revolutionary Guard Corps (IRGC) expanded by 14%, accounting for 34% of Iran’s total military spending, the report said. It is the US designation of the IRGC as a foreign terrorist organisation (FTO) that threatens to derail the attempt by Iran and world
69 IRAN Country Report August 2022 www.intellinews.com