US grants Iraq summer break from Iran electricity sanctions
The Trump administration’s reprieve for Iraq from US sanctions on Iranian electricity imports will extend through September.
On May 7, shortly after new Iraqi Prime Minister Mustafa al-Kadhimi received confirmation from parliament, US Secretary of State Mike Pompeo called the new premier and told him that Washington will move forward with a 120-day waiver to allow Iraq to import electricity from Iran.
This seemed a gesture of support from the United States to the new prime minister, whose confirmation followed the failure of his two predecessors as prime minister-designate, Adnan al-Zurfi and Mohammed Tawfiq Allawi. Pompeo's move came after Washington had initially agreed April 26 to waiver of only 30 days.
Yet despite the reprieve the four-month waiver provides — as Iraq faces soaring temperatures and increased energy use in the summer — there remains a lot to be resolved between Washington and Baghdad when it comes to Iran’s role in the Iraqi energy sector.
Iraq is still Iran’s most loyal business partner despite hurdles imposed by sanctions, protests, the coronavirus crisis and — most importantly of all — the United States’ continuous pressure on Baghdad to try to get it to drop out of the deals to buy Iranian electricity and gas.
