Extension of Baghdad's Exemption for Purchasing Electricity from Iran; U.S. Says It Helps Maintain Stability in Iraq

Matthew Miller, spokesperson for the U.S. State Department, in a press conference on Wednesday, July 18, justified the extension of Iraq's exemption from U.S. sanctions for importing electricity from Iran by referencing the 'maintenance of stability in Iraq.' The Biden administration previously granted Iraq a four-month opportunity on July 12 to deposit payments for energy imports from Iran into an account of the Islamic Republic at a bank in Iraq. The U.S. State Department spokesperson reminded that such an exemption has been in place since the administration of former President Donald Trump to help maintain peace and stability in that country. Recent unprecedented heat has affected many parts of the world, including Iraq, and like some countries, daily power outages have made life difficult for the people. Prolonged power outages have once again led to protests in various parts of Iraq. Last week, Fuad Hussein, Iraq's Foreign Minister, was in Washington, D.C., where he explained to U.S. Treasury officials the country's need for this energy source and reliance on the exemption from sanctions. According to the initial agreement between the U.S. and Iraqi governments, the price of energy imported from Iran is deposited into an account that the Islamic Republic can only use to purchase humanitarian goods, such as medicine. The U.S. has pressured Iraq to develop its electricity production industry to become independent from imports from Iran as soon as possible. The U.S. expressed satisfaction with Iraq's progress in reducing its dependence on Iranian gas.