11 July 2023

Iraqi Prime Minister al-Sudani announced that “it was agreed with Iran to provide it with crude oil in exchange for gas, and the decision will ensure the continuity of the supply of gas, and with it the current crisis will end”. He further noted that “due to the lack of U.S. approvals to transfer funds to Iran, gas supplies were stopped earlier and decreased by more than 50 per cent… Iraq has paid all its dues for Iranian gas amounting to 11 billion dollars, and it was deposited in the account of Iranian companies and we transferred 1.8 billion euros to Iran to pay gas dues”. The same day, U.S. National Security Advisor Jake Sullivan hailed an Iraqi energy deal with Total as “a major step towards both establishing Iraq’s energy self-sufficiency and meeting its climate goals”. “This energy and gas capture project, together with the ongoing programs to connect Iraq’s electricity grid to the grids in the GCC and Jordan, will significantly enhance Iraq’s energy security and the reliability of its electricity network”, he added.

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