Iraqi Officials Insist on Implementing 'Barter' with Iran; Not Contrary to US Sanctions

Following reports of an agreement between the Islamic Republic and Iraq for 'bartering Iranian gas for Iraqi oil' and reactions to this news, Iraqi officials defended this agreement, claiming that the contract does not violate US sanctions against Tehran. According to the Associated Press, as Iraq's energy situation worsens with the onset of summer and the 'security' crisis in electricity supply, the Iraqi government faces the challenge of balancing its alliance with the US and the Islamic Republic. Previously, Iraq purchased Iranian gas and paid in dollars, but the lack of US approval for sanctions exemptions ultimately led to the cessation of Iranian gas supply and severe electricity shortages in Iraq. On one hand, due to decades of severe electricity shortages and governmental corruption, Iraq has become heavily reliant on imported gas from Iran, while on the other hand, recent shortages are partly a result of US restrictions on transferring and paying for gas to Iran. While Washington has considered exemptions to meet Iraq's energy needs, it has 'yet' to grant Iraq an exemption to pay its $11 billion debt to Iran. To resolve this crisis, Iraq proposed a 'barter agreement' with Iran that includes the daily exchange of 250,000 barrels of crude oil for gas. Iraqi officials argue that this way, Iraq does not violate financial sanctions, as it is a 'countertrade' rather than a real money transfer. Simultaneously, with the unveiling of the countertrade deal with the Islamic Republic, Iraq finalized a $27 billion energy contract with Total Energy aimed at 'reducing Iraq's dependence' on gas imports from Iran. Previously, 'Uganda' had proposed to the Islamic Republic to engage in trade with this country through 'barter'. Additionally, 'Sri Lanka' promised to repay its $250 million oil debt to Iran with 'tea', and 'India' successfully tested its first countertrade deal to barter 'flour for oil'. Earlier, the Islamic Republic's Trade Development Organization had also 'announced' that the conditions for 'barter' with 'Pakistan' would soon be finalized. Bartering goods has become obsolete in the world, and the Islamic Republic has no choice but to barter goods with oil. The expansion of unconventional trade; the 'barter' locomotive has reached Pakistan. The continuation of the 'barter' policy in the Islamic Republic; from tea and rice to medicine and wool. Identification of 1,506 government assets for 'barter' in the form of 'monetization'; critics: it is the plundering of public assets. Pakistan is bartering goods with Iran, Afghanistan, and Russia. The government's insistence on the approved price and the continued opposition of wheat farmers; the 'review meeting on wheat prices' was not held. The ongoing challenge of currency transfer; the Central Bank of Iraq does not allow the transfer of dollars to Iran.