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US grants Iraq sanctions waiver to buy Iranian electricity

AFP  |  Baghdad 

The has granted a waiver to allow it to keep importing from neighbouring despite renewed American sanctions on Tehran, a said Wednesday.

relies heavily on to provide it and Iranian-generated electricity, and feared that supply would be endangered by Washington's measures against Iran's

The US State Department's on said Wednesday that had been granted a special permission.

"We granted a waiver to allow it to continue to pay for its imports from We are confident that this will help Iraq limit shortages in the south," told reporters in

"Iraq is a friend and a partner, and we are committed to its stability and prosperity."

Iraq is now expected to demonstrate to the US how it would wean itself off Iranian gas, a well-informed Iraqi source told AFP.

"The US gave us 45 days to give them a plan on how we will gradually stop using Iranian gas and oil," the source said.

On Monday, the re-imposed tough sanctions on Iraq's financial institutions, shipping lines, energy sector, and

Iraq has a strong relationship with the United States, coordinating on security, politics, and governance.

But its economy is profoundly intertwined with that of Iran, from which it imports consumer goods amounting to around USD 6 billion (five billion euros) in 2017.

It also pipes in and 1,300 MW of Iranian-generated electricity to cope with power shortages.

Most of Iraq's 39 million people only get a few hours of per day and rely on power generators.

were a key driving factor behind weeks of massive protests in during the summer.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 08 2018. 16:10 IST
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