Iraq to pay $2.76 Billion Debt to Iran for Gas and Electricity

Iraq has agreed to pay $2.76 billion in gas and electricity debt to Iran after receiving a sanctions waiver from the United States, an Iraqi foreign ministry source told Reuters on condition of anonymity. This comes after Foreign Minister Fuad Hussein was given the clearance during a meeting with U.S. Secretary of State Antony Blinken at the Riyadh Conference.

Due to decades of conflict and sanctions, Iraq is dependent on imports from Iran for most of its gas needs; however, U.S. sanctions have made it difficult for Iraq to make payments, leading Iran to retaliate by cutting off supply.

In a brief statement, Ahmed Al-Sahhaf, spokesperson for the Iraqi Foreign Ministry, said that progress had been made "regarding financial dues between Iraq and Iran" but

did not give details. Iranian news agencies reported that some of

the funds will be used to cover expenses for haj pilgrims and foodstuffs imported by Iran.

Iran has been unable to access billions of dollars in assets in several countries because of U.S. sanctions.

The U.S. has demanded that Iraq, which has vast reserves of oil and is the second-largest producer in OPEC, should become independent from Iranian energy imports in order to receive a waiver for them. But, so far, Baghdad has been unsuccessful in this endeavor.  However meeting, deals and agreements with other countries c early shows that Iraq is making a sincere effort to become independent from Iranian energy imports.