Pressure from Pro-Islamic Republic Coalition on Iraqi Government to Pay 'Gas Debt' to Iran

A coalition of pro-Islamic Republic factions in Iraq called on Baghdad on Sunday to pressure the United States to facilitate the payment of several billion dollars in gas debt owed by Iraq to the Islamic Republic. Although Iraq heavily relies on imported gas from Iran for one-third of its energy needs, U.S. sanctions on the Islamic Republic's oil and gas have limited Baghdad's ability to repay its debts. Reminiscent of the 'oil for food' situation in the late Saddam era, Iraq cannot directly pay the Islamic Republic's claims. Instead, the payments are kept in a bank account at the Trade Bank of Iraq, allowing the Islamic Republic to use them 'only' for purchasing 'food and medicine.' Ahmad Mousa, Iraq's Minister of Electricity, recently stated that Iraq has deposited all funds paid for energy imports from Iran, totaling $11 billion, into an escrow account at the 'Trade Bank' of Iraq. However, for final settlement and payment, 'U.S. approval' is required. This 'oil for food' method has placed Iraq in significant debt and brought the Islamic Republic to the brink of completely halting gas exports. In this context, a coalition of Shia groups linked to the Islamic Republic of Iran, which dominates the Iraqi Parliament as a lobby for the Islamic Republic, has urged the Iraqi government to 'contact the United States to demand the release of unpaid debts for gas imports from the Islamic Republic.' Matthew Miller, a spokesperson for the U.S. State Department, previously told Voice of America regarding Iran's access to foreign financial resources: 'Iran can only access funds held in Iraqi accounts for humanitarian and non-sanctioned transactions.' Matthew Miller elaborated on the reasons for this action, stating: 'These actions have been taken for several years and relate to the previous administration, during which the United States continuously approved similar transactions in accordance with U.S. laws and in full coordination with the Iraqi government.' This report utilized information from Agence France-Presse and previous reports from Voice of America.