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Iraq gets new Sanctions Waiver to buy Iranian Energy

By John Lee.

The Trump administration has reportedly granted Iraq a further 90-day extension to the waiver exempting it from US sanctions on Iran.

CNBC quotes a senior State Department official as saying on condition of anonymity:

“While this waiver is intended to help Iraq mitigate energy shortages, we continue to discuss our Iran-related sanctions with our partners in Iraq.”

According to some energy analysts, without continued sanctions exemptions, Iraq could lose more than a third of its power overnight.

More here.

(Source: CNBC)

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Iraqi boosting Arab Ties while Balancing Relations with Iran

By Ali Mamouri for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iraqi officials stress need to boost Arab ties while balancing relations with Iran

The Iraqi city of Sulaimaniyah hosted the sixth-annual Sulaimaniyah Forum on March 6-7, where discussions focused on Iraq’s strategic significance in the region. During the forum, Iraqi officials and their Arab counterparts called for Iraq to re-embrace strong ties with its Arab neighbors and strike a balance in its ties with Iran.

This year’s forum was held under the motto “Iraq and Its Neighbors: Toward a New Regional Order.”

Iraqi President Barham Salih (pictured) said on the first day of the forum that Iraq is striving to bring together different viewpoints in the region based on its depth of ties with Arabic and Gulf states, assuring that this will bring major economic developments to the country and help solve the security crisis. Iraq is capable of being an “arena for consensus and reconciliation among the countries of the region,” he noted.

Click here to read the full story.

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Video: Will sanctions affect Iran-Iraq Economic Relations?

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

How will US sanctions affect Iran-Iraq economic relations?

The Trump administration is giving Iraq a few more months to continue buying oil and electricity from neighbouring Iran before the United States enforces sanctions against Tehran.

After years of conflict, Baghdad now relies heavily on Iran for goods and services.

And Iranian President Hassan Rouhani is visiting Iraq to solidify ties between the neighbours, trying to convince them to defy the US president.

Al Jazeera‘s Natasha Ghoneim reports from Baghdad:

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Shell “Still Evaluating” Viability of Nebras Petrochemicals Complex

By John Lee.

Shell is reported to be still in the process of evaluating the viability of the $11-billion Nebras petrochemical complex in Basra.

The project was designed to produce 1.8 million mt/year of various petrochemicals, using naphtha as a feedstock.

Last year, Reuters reported that Saudi Basic Industries Corp (SABIC) was in talks to join the project, but according to S&P Global Platts there has been no update on the progress of these talks.

(Source: S&P Global Platts)

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Intertek opens Iraq’s first Independent Hydrocarbon Lab

Intertek, the UK-based assurance, inspection, product testing and certification company, has announced the launch of the first independent crude oil, fuel testing and petroleum products laboratory in Iraq.

The new hydrocarbon laboratory, located in the port of Khor Al Zubair, will support the increased demand for quality assurance solutions in the petroleum industry across Iraq and will soon be offering octane engine fuel testing of gasoline for the first time in the country.

The launch of the 1,300 square feet laboratory allows Intertek to offer its services in this fast-growing market and in this highly strategic location. Khor Al Zubair incorporates industrial areas that are home to several petrochemical and other companies that will benefit from the proximity of the laboratory services to their operations. The nine jetties in the port of Khor Al Zubair are vital for fuel imports and exports in Iraq and enable direct access for crude carriers, refiners, distributors and trade companies.

Based within SKA Energy’s new oil storage terminal, the laboratory represents a significant investment in the Iraq oil and gas industry. Offering a wide range of services for the petroleum and related industries, the laboratory will deliver sample testing, and services for the downstream oil and gas and aviation sectors.

It will also provide detailed crude oil, naphtha and gasoline quality analysis and testing, which helps clients maintain or improve fuel quality to meet commercial and regulatory specifications. The facility will offer 24/7 operations and trouble-shooting support.

Matthew Skinner, Intertek Regional Managing Director Gulf and Pakistan, said:

“As the demand for Assurance services in Iraq grows, we are delighted to have achieved an industry first in opening this laboratory.

“Our new facility in Khor Al Zubair allows us to cater for the needs of numerous parties operating within the oil and gas industry in Iraq, providing our customers with systemic Total Quality Assurance Solutions. Local companies can now obtain lab reports to help them assess their fuels in accordance with industry international standards, at a shorter turnaround time.”

(Source: Intertek)

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Iran’s President to Visit Iraq in March

Iranian President Hassan Rouhani will travel to Iraq on March 11 for an official visit.

Heading a high-ranking delegation, the Iranian president will be visiting the Arab country at the official invitation of Baghdad.

It will be Rouhani’s first official visit to Iraq during his tenure.

On Monday, Iranian Deputy Foreign Minister Abbas Araqchi met with Prime Minister of Iraq Adil Abdul-Mahdi in Baghdad to make arrangements for Rouhani’s forthcoming trip.

The Iranian president’s visit would come against the backdrop of Tehran’s efforts to boost its foreign trade in the US sanctions era.

Iraq’s foreign minister said recently that his country is “not obliged” to abide by sanctions imposed by the US against Iran and would be pursuing options to continue bilateral trade.

President of Iraq Barham Salih paid a visit to Tehran in November 2018 with a ranking delegation for a series of political and economic talks.

Speaking at a joint press conference with his Iraqi counterpart at that time, Rouhani said the value of trade and economic interaction between Tehran and Baghdad stood at around $12 billion, adding that the two neighbors have the potential for a $20-billion trade target.

Earlier this month, governors of the central banks of Iran and Iraq signed an agreement to develop a payment mechanism aimed at facilitating banking ties between the two neighboring countries.

According to governor of the Central Bank of Iran Abdolnaser Hemmati, Iran is going to open euro and dinar-based accounts to process transactions for trade in oil and gas.

Describing Iraq as Iran’s major partner, Hemmati said the two countries have agreed to make the banking ties much stronger.

He also stated that Iraqi companies can reciprocally open accounts in Iranian banks and conduct transactions in dinar.

In December 2018, Chairman of Iran-Iraq Chamber of Commerce Yahya Ale-Eshaq said the central banks of Iran and Iraq were finalizing negotiations to begin trade in their own currencies.

Iraq’s Foreign Minister Mohamed Ali Alhakim has made it clear that his country cannot cut off trade ties with Iran under the US sanctions.

(Source: Tasnim, under Creative Commons licence)

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What Iran’s Revolution meant for Iraq

By Bruce Riedel, Brookings Institution.

The opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

What Iran’s Revolution meant for Iraq

The collapse of the shah’s government in Iran in early 1979 impacted the entire world but no country was more affected than Iraq.

Saddam Hussein’s regime was the shah’s deadly enemy and had hosted the Ayatollah Khomeini in exile for years, but Saddam became the top foreign target of the revolutionaries in Tehran once they took power.

Many countries were caught off balance by the Iranian revolution but none got it as wrong as Iraq. Its response—war—led to decades of conflict which have yet to end.

The full report can be read here.

(Source: Brookings Institution)

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Russia want More Projects with Iraq

By John Lee.

Russian Foreign Minister Sergey Lavrov has said that Moscow is very interested in increasing trade, economic and investment ties with Iraq.

Following a meeting on Wednesday with Iraqi Foreign Minister Mohamed Ali Alhakim, he said:

“In the field of investment, especially in the hydrocarbon sector, there is a very good result. Lukoil, Gazprom Neft, SoyuzNefteGaz are already working, Rosneft is interested in projects in Iraq. The total investment in this industry has already exceeded $ 10 billion.

“We want to promote projects in other areas. Today we talked about electricity, agriculture, industry, transport – all this will be considered in the context of preparations for the next meeting of the Russian-Iraqi Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation.“

He added that about 4 thousand Iraqi citizens are currently studying in universities of the Russian Federation, while dozens of diplomats from Iraq take part in special training courses at the Diplomatic Academy at the Russian Foreign Ministry.

(Source: Russian Ministry of Foreign Affairs)

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Jordan moves to Restore Strategic Ties with Iraq

By Osama Al Sharif for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Jordan’s King Abdullah’s one-day visit to Baghdad on Jan. 14 was hailed as “historic” by Iraqi President Barham Saleh. It was the first trip to Iraq by the Jordanian monarch in more than a decade, and it came less than a month after the kingdom’s prime minister, Omar Razzaz, paid a visit on Dec. 28 to the Iraqi capital to sign a number of economic agreements.

A royal court statement said the king noted the strong ties between the two countries, affirming that Jordan stands by Iraq as it seeks to safeguard its security and stability, and works to fulfill the aspirations of the Iraqi people toward further prosperity and progress.

It added that the two leaders “stressed the importance of bilateral agreements in the economic, trade, investment, energy, transport and construction sectors.”

Click here to read the full story.

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Jordan and Iraq plan to Increase Trade

By John Lee.

King Abdullah II of Jordan arrives in Baghdad today on an official visit to Iraq for talks with President Barham Salih, and Prime Minister Adil Abd Al Mahdi and senior officials, with a view to strengthening bilateral relations and regional development.

According to a report from The Arab Weekly, the two countries are planning a border industrial zone with a possible 50,000 jobs. It would also facilitate exports of tax-exempted Jordanian goods to the Iraqi market.

In recent weeks, the two countries have agreed a series of measures to increase cooperation between the two countries, including a plan to finalize the framework agreement for the Iraqi-Jordanian pipeline which will run from Basra through Haditha to Aqaba in the first quarter of 2019.

They have also agreed to upgrade the al-Karamah – Terbil Border Crossing.

(Sources: Govt of Iraq, The Arab Weekly)