US gives Iraq sanctions waiver for vital Iranian gas imports
AMERICA has granted Iraq a 45-day sanctions waiver enabling the united states to continue importing essential Iranian gas and electricity supplies.
In a statement Wednesday, the U.S. STATE DEPT. said the waiver "means that Iraq is able to meet its short-term energy needs although it takes steps to lessen its dependence on Iranian energy imports."
The U.S. has applied stringent sanctions on Iran that punish any country trading with it.
The issuance of the waiver came amid fraught U.S.-Iraq ties following an American drone strike that killed the most notable Iranian general, Qassem Soleimani, near Baghdad airport on Jan. 3.
Washington had expressed willingness to increase the sanctions waiver, that was because of expire this week, Iraqi officials told The Associated Press, on the problem that Iraq give a timeline detailing an idea to wean itself from Iranian gas dependence.
Both officials said the U.S. issued the waiver anyway and offered the opportunity of a longer period period if Iraq produces the requested timeline. They spoke on condition of anonymity because they were not allowed to speak publicly about the matter.
In its statement, the U.S. STATE DEPT. said: "Iran has tested itself as an extremely unreliable source of energy for Iraq. Reducing Iranian energy imports is therefore paramount for Iraq to achieve energy security."
The brand new waiver gives Iraq just 45 days showing Americans that it's making good on conditions to improve domestic gas supply or find alternative sources for power, and lessen its reliance on Iran. The previous waiver, issued in October, had given Iraq 120 days.
A senior Iraqi official with understanding of sanctions negotiations with the U.S. said the period could possibly be extended again once Iraq submits a technical timetable detailing how it plans to meet up gas independence.
"It happened that america of America gave us a period of 45 days, and it may be extended in case of us submitting a timetable regarding Iraqi gas investment," the state said. "As yet, we have not sent them a timetable."
Iraq remains highly reliant on Iranian natural gas to meet electricity demands, especially during the scorching summer months when imports take into account a third of consumption. Late payments by Baghdad for Iranian power and gas have led to interruptions recently. In the summer of 2018, that was one factor that bring about destabilizing protests in the southern oil-rich province of Basra.
The U.S. waiver permits Iraq in order to avoid penalties while paying Iran vast amounts of dollars for energy imports. It's been granted successively since November 2018, when the Trump administration re-imposed sanctions on Iran.
The Iraqi Cabinet moved toward placating Washington's conditions to renew the sanctions waiver in late January, by approving six oil contracts awarded by the Oil Ministry in April 2018 that could boost domestic gas supply in over two years, according to a Cabinet statement on Jan. 23.
