Washington has made a change in the way Iraq pays Iran for electricity, seemingly to reduce Iranian pressure on Iraq, but it could potentially also weaken US sanctions.
According to an exclusive report by Reuters, the Biden administration on Tuesday moved to let Iraq pay Iran for electricity via non-Iraqi banks, a US official said, a step Washington hopes may keep Tehran from forcing unpopular power cuts during the sweltering Iraqi summer.
Secretary of State Antony Blinken signed a 120-day national security waiver allowing Iraq – heavily dependent on Iranian electricity – to deposit such payments into non-Iraqi banks in third countries instead of into restricted accounts in Iraq, said the official who spoke on condition of anonymity.
Reuters, apparently quoting the official, said that funds put into the non-Iraqi banks, like those deposited into Iraqi banks, will also be restricted, still requiring US permission for Iran to get access to them and only for spending on humanitarian goods.
Tehran has in the past pushed Baghdad to secure US permission to release such funds by cutting Iranian natural gas exports to Iraq, limiting Iraq’s ability to generate power, and forcing deeply unpopular electricity cuts.
Source : Iran Itl