Iranian Energy Minister: Iraq to open euro bank account to pay Iran’s energy debts

Iraq relies heavily on Iranian gas to feed several power plants across the country, while Iranian electricity exports also account for a major part of the country’s power supply.

Iranian Energy Minister Reza Ardakanian said that Iraq is going to open a euro bank account to pave the way for settling all the country’s gas and electricity dues to Iran.

R.Ardakanian noted: this agreement is going to be implemented in the coming days. Iraq is going to open a euro savings bank account in which the country’s debts to NIGC and to the Power Generation, Distribution,Transmission Company (Tavanir) will be saved Iraq’s recent debts to Iran will be transferred and saved in this account after being exchanged to euro the savings in this account can also be used for paying Iranian contractors dues in the mentioned country.

This way, transferring the money or using it for purchasing basic goods and medicine will be less problematic considering the U.S. sanctions, Ardakanian emphasized. He announced the formation of a committee for working on the issue and said: “As the Iranian head of the two countries’ Joint Economic Committee, I will monitor the process on a daily basis until we achieve desirable results.”

Iraq’s electricity ministry spokesman Ahmed Moussa told Reuters that Iran is going to resume normal gas flows to Iraq following the agreement reached between the two sides on December 29.

Iraq owes Iran over $6 billion for electricity and gas imports from the Islamic Republic, of which $3 billion is claimed to be blocked and inaccessible in the Trade Bank of Iraq (TBI).

Iran reduced its gas exports to the neighboring country by over 45 million cubic meters a day (mcm/d) on December 28, threatening to further reduce the current 5 mcm/d of gas supply to 3 mcm/d.

Return to news