Iraq condemns US sanctions imposed on key state-run companies, criticizing Washington’s approach as one-sided and damaging. The Iraqi government responded sharply to the recent decision by the US Treasury Department to sanction Al-Muhandis General Company and other Iraqi firms.
On Thursday, the US Treasury accused several Iraqi entities of supporting Iran-backed armed groups. These groups allegedly include Kataib Hezbollah. Entities such as Al-Muhandis General Company and Baladna Agricultural Investments were among those targeted. The US cited alleged financial and intelligence links as justification.
In response, Iraqi government spokesperson Bassem al-Awadi expressed deep concern. He said the move came without coordination or consultation. Al-Awadi warned that this approach sets a dangerous precedent. According to him, such unilateral action undermines relations between trusted partners.
He reiterated that Iraq condemns US sanctions that bypass diplomatic channels. Iraq, he said, is committed to the rule of law. The country intends to honor its international obligations while safeguarding national sovereignty.
Furthermore, the spokesperson emphasized Iraq’s dedication to legal frameworks. He stated that no entity should operate outside state authority. The government opposes any financial or economic activity beyond its legal boundaries.
To address the issue, Prime Minister Mohammed Shia al-Sudani took swift action. As a first step, he ordered the creation of a high-level national committee. This new body, in particular, includes officials from the Finance Ministry, the Central Bank, the Integrity Commission, and the Supreme Audit Board.
Moving forward, their mission is clear. Specifically, the committee must investigate the impact of these sanctions. Within 30 days, they are expected to report findings and propose solutions. Following that, legal and administrative recommendations will be submitted as part of the review.
Meanwhile, the government is closely monitoring the US Treasury’s recent decisions. In addition, officials will ensure Iraqi institutions comply with national and international laws. At the same time, Iraq demands respect from its allies in return.
Iraq condemns US sanctions that ignore diplomatic protocols. It urges Washington to prioritize mutual dialogue and legal cooperation. Only through joint efforts can both countries maintain trust and stability.
Iraq’s response highlights a growing rift in US-Iraq relations. The latest measures may strain bilateral ties further. As Iraq pushes for legal clarity and national dignity, diplomatic engagement remains essential.


