White House: Iran Can Only Buy 'Non-Sanctioned Items' with Money from Electricity Sales to Iraq

Adrienne Watson, spokesperson for the National Security Council at the White House, stated on social media platform X that misleading political attacks regarding the extension of exemptions by the Biden administration allowing Iraq to use its budget to pay for electricity imports from Iran have been observed. She pointed out six truths in this regard. According to Watson, the first truth is that 'this is the twenty-first confirmed exemption in continuation of a practice that began during the Trump administration.' Regarding the second truth, she mentioned that this exemption ensures that the people of Iraq will not suddenly be deprived of access to electricity. The third truth is that Iraq finances its electricity imports from Iran with its own financial resources, not from the U.S. government budget. Watson then emphasized the 'baseless' claim that the Biden administration allows Iraqi money to flow to Iran, explaining that 'these funds are deposited into limited accounts outside of Iran, and the Islamic Republic can only use them to purchase items that are not subject to sanctions, such as medicine and food, and these funds are directly deposited into relevant financial institutions without ever going to Iran.' The spokesperson for the National Security Council described the Biden administration's commitment to curbing the destabilizing activities of the Islamic Republic and condemning the regime in Iran for suppressing protesters as the fifth truth, stating that Biden has sanctioned 'four hundred entities affiliated with the Islamic Republic since taking office, three hundred of which were sanctioned in 2022 alone.' The sixth truth is that the goal of the United States is not to punish or pressure ordinary people in Iraq and Iran, and the bipartisan policy towards Iran has always been that humanitarian aid should not be subject to sanctions, and 'that is why the Trump administration began issuing these exemptions.' The Biden administration announced on Tuesday, November 14, the extension of Iraq's exemption for importing electricity and gas from Iran for four months. According to the Associated Press, U.S. Secretary of State Antony Blinken signed the authorization for this 120-day exemption and sent it to Congress on Tuesday. Matthew Miller, spokesperson for the U.S. State Department, also stated on Tuesday that twenty exemptions for Iraq's payment of debts for electricity imports from Iran have been issued so far. The first exemption for Iraq from Iran's banking sanctions was implemented during Donald Trump's administration in 2018. Iraq imports one-third of its electricity from Iran, and the gas it receives from Iran is mainly used to fuel power plants. Iraq claims it will need at least two years to become independent from imports of electricity and gas from Iran. Criticism from the House Majority Leader regarding Biden's policy towards the Islamic Republic; Richard Goldberg: The Islamic Republic will not change its behavior, pressure must be applied; Iraq's exemption from sanctions for paying debts to Iran has been extended; The U.S. expressed concern over the potential transfer of anti-aircraft equipment from the Wagner Group to Hezbollah in Lebanon.