Iraq's Electricity Ministry: Iran Has Cut Gas Exports

The news outlet "Middle East News" reported that Ahmad Moussa, spokesperson for Iraq's Electricity Ministry, stated that Iran has halted gas exports to Iraq without prior notice. In a television interview last Sunday night, Moussa emphasized that Iran cut off gas supplies just as temperatures in Iraq reached 51 degrees Celsius, causing Iraqi power plants to shut down due to the lack of gas. According to Moussa, the Al-Mansouriya and Al-Sadr power plants, south of Baghdad, as well as Al-Rashid, Al-Taji, Khour Al-Zubair, and other plants have ceased operations due to the reduction of gas imports from Iran. The spokesperson for Iraq's Electricity Ministry stressed that Iran did not provide any warning regarding the gas reduction and caught Iraq off guard with this cut. He mentioned that Iran has stated regarding the gas export cut to Iraq that "we have funds in Iraq that need to be paid." According to a previous report by Voice of America on the financial relations between Iran and Iraq, a coalition of pro-Islamic Republic factions in Iraq called on Baghdad last Sunday to pressure the U.S. to facilitate the payment of Iraq's multi-billion dollar gas debt to the Islamic Republic. Although Iraq heavily relies on imported gas from Iran for one-third of its energy needs, U.S. sanctions on Iran's oil and gas have limited Baghdad's ability to repay its debts. Reports in recent months indicate that the payments are held in a bank account at the Trade Bank of Iraq, so that the Islamic Republic can use it "only" for the import of "food and medicine." Ahmad Moussa stated last week that Iraq has deposited all payments made for energy imports from Iran, totaling $11 billion, into an escrow account at the Trade Bank of Iraq, but needs "U.S. approval" for final settlement and payment. In this context, a coalition of Shiite groups linked to the Islamic Republic, which dominates the Iraqi parliament as the "Islamic Republic lobby," has urged the Iraqi government to "contact the United States to demand the release of unpaid debts for gas imports from the Islamic Republic." In this regard, Matthew Miller, spokesperson for the U.S. State Department, previously told Voice of America about allowing the Islamic Republic access to foreign financial resources: "Iran can only access funds held in Iraqi accounts for humanitarian and non-sanctioned transactions." Matthew Miller explained the reasons for this action, stating: "These are actions that have been taken for several years and relate to the previous administration, in which the United States continuously approved similar transactions in accordance with U.S. laws and in full coordination with the Iraqi government." Earlier in June, following a reduction in the volume of gas exports to Iraq, the Iraqi Foreign Ministry issued a statement indicating that the Iranian side attributed the reduction in gas exports to "technical issues" and emphasized that Tehran has no decision to reduce gas exports to Iraq. Reuters also quoted Iraqi Foreign Minister Fuad Hussein as saying that during a phone call with his Iranian counterpart Amir-Abdollahian, he warned that the reduction in gas inflow from Iran would lead to decreased electricity production, increased blackouts, and disruptions in the daily lives of the Iraqi people. In recent weeks, Iranian officials have repeatedly claimed that they have received Iraq's debts to Iran. Pressure from the Islamic Republic-supporting coalition on the Iraqi government to pay the "gas debt" to Iran has been revealed. The head of the Football Federation unveiled a method; the government has paid for electricity exports to Iraq in rials to the power plants. The Secretary-General of the Iran-Iraq Chamber of Commerce reported an increase in labor migration to Iraq. Electricity went out, the opening of "Elecomp" remained unfinished; the Computer Trade Union Organization stated: It is normal.