Baghdad, Iraq- The United States has urged Iraq to eliminate its dependence on Iranian energy sources as soon as possible, calling on Baghdad to pursue energy independence. During a press briefing on Thursday, Tammy Bruce, the spokesperson for the US Department of State, reiterated that the US administration supports Iraq’s efforts to reduce its reliance on Iran and welcomes the commitment made by Iraqi Prime Minister to achieve energy independence.
The US has been reviewing all existing sanctions waivers, particularly those related to Iraq’s imports of Iranian gas, which had been extended under a 120-day waiver that expired on March 8. Bruce explained that the US is focused on limiting Iran’s economic influence, especially in Iraq, as part of efforts to ensure a stable, sovereign, and secure Iraq.
Since 2018, the US has allowed Iraq to purchase electricity and gas from Iran as it works on building up its own domestic energy capacity. However, under current US sanctions on Iran, the funds Iraq uses to pay for Iranian energy can only be used by Iran for non-sanctioned purposes, such as buying food and agricultural products for humanitarian needs.
The US is keen to reduce Iran’s influence in the region, and sanctions imposed on Iran over its nuclear program and support for extremist groups have made it increasingly difficult for Iraq to meet its energy needs through Iranian sources. Despite this, Iraq remains Iran’s largest trading partner, with the value of exports from Iran to Iraq reaching over $10 billion between March 2022 and March 2023. Gas imports from Iran are crucial for Iraq’s electricity generation, but US sanctions complicate Iraq’s payments to Tehran.
In response, Iraq has been making significant investments in projects to utilize flared gas and increase its use of renewable energy to reduce its dependence on Iranian imports for power generation.
