Iraq signs an agreement with Iran to barter oil for gas

Iraq signs an agreement with Iran to barter oil for gas


Iraq signs an agreement with Iran to barter oil for gasBaghdad and Tehran signed an agreement to barter Iranian gas for Iraqi crude oil, according to the information office of the Iraqi Council of Ministers.

The statement stated that Iraq seeks to replace the imported Iranian gas that it needs to produce electricity through a plan to provide immediate solutions, as well as other medium and long-term solutions that include importing gas from Turkmenistan and Qatar.

Under the agreement, which was signed in Baghdad late on Tuesday evening, the imported Iranian gas that operates power stations will be exchanged for Iraqi crude oil and black oil.

The agreement was reached between the two countries after negotiations that lasted for several days, in which delegations and technical and technical committees from both sides participated, according to the statement.

Iraqi Prime Minister Muhammad Shia al-Sudani said that Iran had reduced its gas exports to Iraq by more than 50%, starting from the first of July, after Baghdad was unable to obtain the approval of the United States to spend the money owed to it, before Tehran agreed to resume exports. Gas in exchange for Iraqi crude oil.

The new agreement will lead to the restart of Iraqi power stations, and also includes the payment of Iranian debts owed by Iraq.

Al-Sudani said that the Iranian debts incurred by Iraq as a result of buying gas for the past years amounted to more than 11 billion euros, adding that his country would provide crude oil to Iran in exchange for gas, in order to end the problem of US approval of payments to Tehran.