Iraq Exempted from Sanctions to Pay Iran's Debt; Richard Goldberg: The Islamic Republic Will Not Change Its Behavior, Pressure Must Be Applied

On Tuesday, November 14, the Biden administration extended Iraq's sanctions exemption for paying its debt to Iran for another 120 days. This exemption allows the Iraqi government to deposit part of its debt to Iran into an account in Oman. Currently, about $10 billion is available in an account named after Iran in an Iraqi bank. This money has been used to purchase natural gas and electricity from Iran. The last extension was granted by the Biden administration in late July of this year for another 120 days, during which nearly $3 billion was transferred to an account named after Iran in Oman by various European broker banks. However, Richard Goldberg, a senior advisor at the Foundation for Defense of Democracies, questions this decision by the Biden administration. In an interview with Voice of America, he states that providing money to the Islamic Republic only helps stabilize their shaky economy. He believes that the Islamic Republic will not change its behavior with money and that pressure must be applied. Goldberg argues that the Biden administration should not only deny access to funds for the Islamic Republic but also close all possible avenues for accessing money and seriously warn the Islamic Republic that military options are ready to be executed to deter them from their actions and to ensure they never cross nuclear red lines. The Biden administration has stipulated that this money has limited use: for humanitarian items for the people of Iran and goods not subject to sanctions. Senior U.S. State Department officials say that all purchases made by the Islamic Republic through this route will be closely monitored. In fact, without the seller's approval by the U.S., no transaction could take place. However, analysts in the U.S., including Richard Goldberg, believe that the Islamic Republic uses humanitarian channels to conduct unauthorized transactions. They claim that the Islamic Republic sells the procured goods in the free market and uses the proceeds for its terrorist activities. Matthew Miller, a spokesperson for the U.S. State Department, referenced that these exemptions have been granted to Iraq since 2018 during the Trump administration to enable the country to pay for imported natural gas and electricity from Iran. According to senior U.S. State Department officials, the goal is to gradually cut Iraq's dependency on energy supplies. However, until that time, if Baghdad needs it, it can obtain it from Iran, and by granting exemptions to Iraq, money can be transferred abroad so that the Islamic Republic does not pressure the Iraqi government for access to it. Given the Islamic Republic's relationship with Hamas and the group's attack on Israel on October 7 and other proxy group attacks on U.S. positions in Iraq and Syria, Goldberg believes that the Biden administration should not allow access to money for the Islamic Republic and should close all possible avenues for accessing funds, warning the Islamic Republic that military options are ready to be executed to deter them from their actions and ensure they never cross nuclear red lines.