Iran Agrees to Resume Supplying Gas to Iraq Despite $6 Million in Unpaid Bills
Iran agreed to resume supplying gas to neighboring Iraq on Wednesday after the countries came to an arrangement over Iraq’s unpaid bills totaling more than $6 million.
Iranian Energy Minister Reza Ardakanian and Iraq’s Energy Minister Majid Mahdi met on Tuesday in Baghdad, a day after Iran’s state gas company halted the flow of gas into Iraq, Reuters reported. The halt in gas flow could have led to serious power shortages in Baghdad and other major Iraqi cities.
Ardakanian called the gas-flow stoppage a result of “technical problems.” He told the IRNA state news agency that agreements had been reached with Iraqi officials to “withdraw Iranian funds from Iraq to pay for the purchase of the coronavirus vaccine from Europe using Iran’s existing financial resources in Iraq.” Iran has been unable to use billions of dollars held in several countries as a result of U.S. sanctions.
Ardakanian said Iraq paid back an “appreciable portion” of its debt to Iran’s state gas and electricity companies, IRNA reported. Barley shipments to Iran and other goods are being used to cover some of the overdue bill payment, according to Reuters.