The US Department of State spokesperson, Tammy Bruce, stated on Thursday that the US administration is pushing the Iraqi government to reduce its reliance on Iranian energy sources. Bruce emphasized that the US is encouraging Iraq to achieve energy independence as quickly as possible.
During a press briefing, Bruce also expressed support for Iraqi Prime Minister’s commitment to energy independence. She highlighted the importance of moving away from Iranian energy, particularly as Iraq’s energy sector continues to develop its domestic capabilities.
The recent expiration of Iraq’s sanctions waiver for Iranian gas imports on March 8 prompted further discussions. Bruce explained that the US administration is reviewing all existing sanctions waivers. These waivers have previously allowed Iraq to continue importing gas from Iran without violating US sanctions.
Back in December, the US extended a 120-day waiver, allowing Iraq to pay Iran for its energy imports. This extension was crucial as Iraq continues to build up its own energy generation infrastructure.
The US aims to reduce Iran’s influence in the region. According to Vedant Patel, the principal deputy spokesperson of the US State Department, a stable and sovereign Iraq is essential for these efforts.
Since 2018, Iraq has been allowed to buy electricity from Iran while working on expanding its domestic energy capacity. However, US sanctions on Iran limit how Iran can use the funds it receives. The money can only be spent on non-sanctionable transactions, like food and agricultural products for humanitarian aid.
Iraq is Iran’s largest export market. Between March 2022 and March 2023, Iranian exports to Iraq reached $10.23 billion. These exports, particularly gas, are vital for Iraq’s power generation. However, the restrictions on paying for Iranian energy create challenges for Iraq.
The US has allowed these exemptions to help Iraq meet its immediate energy needs. However, Washington continues to urge Baghdad to reduce its dependence on Iranian gas and electricity. Iraq has also invested in several projects to use flared gas and explore renewable energy solutions.
In conclusion, while the US supports Iraq’s immediate energy needs, it remains committed to helping Iraq achieve long-term energy independence. Reducing dependence on Iranian energy is seen as a key step in this process.