Iraqi bank says gas transfers from Iran to stop if US waiver ends

BAGHDAD — The bank through which Iraq pays for Iranian gas imports to power its grids says it’ll stop processing payments if a crucial US sanctions exemption expires next month.

“We’ll stop. As simple as that,” the head of Trade Bank of Iraq (TBI) Faisal al-Haimus tells AFP.

That could be devastating for Iraq’s crippled electricity sector, which has relied on Iran for about a third of its supply, and comes at a time of heightened US-Iran tensions.

Washington slapped tough sanctions on Iran’s energy sector in 2018 but has granted Iraq a series of temporary waivers over the last 15 months to allow it to buy gas from Tehran.

Baghdad pays for the imports by depositing Iraqi dinars into an account at the state-owned TBI, which Iran is technically allowed to use to purchase non-sanctioned goods.

But if Iraq’s waiver is not renewed next month, TBI would stop processing payments, Haimus says.

“If the waiver ended, of course TBI will not pay for any gas or deal with any Iranian entity over gas or electricity. Absolutely,” he says.

“As a bank, the most important thing we have is that we are compliant (with international regulations). That’s why people trust us,” the chairman adds.

— AFP