US grants Iraq shorter sanctions waiver allowing Iranian power imports until Nov

Washington — Iraq has until Nov. 22 to reduce its dependence on Iranian electricity imports or risk yet another round of pressure from the US Department of State and potentially lose a sanctions waiver allowing for the critical power supplies.

The State Department granted a 60-day waiver extension to Iraq allowing it to keep paying for electricity imports from Iran.

"We believe that it is possible within the 60 days for the Government of Iraq to take meaningful actions to promote energy self-sufficiency and reduce its dependence on expensive Iranian energy," a State Department spokeswoman said Sept. 24.

Iraq depends on the imports in the face of routine power shortages and its flaring of associated gas, which is bound by production limits as part of the country's attempted adherence to OPEC+ cuts.

The latest waiver is half the duration of the 120-day exemption the US granted Iraq in May, which was seen as a boost at the time to recently appointed Prime Minister Mustafa al-Kadhimi.

The State Department said the renewal acknowledges recent diplomatic successes between Washington and Baghdad. The governments signed several energy agreements during Kadhimi's visit to Washington in August.

"These agreements will ultimately allow Iraq to develop its energy self-sufficiency and end its reliance on Iran," the State Department spokeswoman said. "In the interim, renewal of the sanctions waiver is necessary until the agreements and development of the Iraqi energy sector can be fully realized and implemented."

During Kadhimi's visit to Washington, the Iraqi electricity ministry signed deals with several US companies worth up to $8 billion. US Secretary of Energy Dan Brouillette said the agreements would be key to Iraq becoming energy self-sufficient.