Cursor International executes projects and collaboration activities across several industries.
By John Lee.
The Kurdish Regional Government (KRG) has reportedly suspended oil exports to Iran.
According to Anadolu Agency, the KRG’s Ministry of Finance and Economy did not specify a reason for the move, and “it remains unclear whether the suspension is linked to U.S. sanctions on Iran.”
(Source: Anadolu Agency)
(Source: Tasnim, under Creative Commons licence)
The governor of the Central Bank of Iran unveiled plans for using non-dollar accounts for oil and gas trade with Iraq.
Abdolnaser Hemmati on Wednesday held a meeting with presidents of Iraqi banks, members of Iraq’s chamber of commerce and the Arab country’s business people during a trip to Baghdad.
In the gathering, the top Iranian banker unveiled a new mechanism to continue Iran’s trade with Iraqi businesses, saying the CBI 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.
“According to the agreements, Iranian exporters should be able to continue activities via Iraqi banks, and Iranian banks could also open dinar accounts in Iraqi banks.”
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, saying the value of annual trade between Iran and Iraq amounts to $12 billion.
(Source: Tasnim, under Creative Commons licence)
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)
From The Economist.
America is trying to get more out of its relationship with Iraq
US President Donald Trump thinks America is being ripped off. “We have spent $7trn—trillion with a T—$7trn in the Middle East,” he told a crowd last year, exaggerating slightly. “You know what we have for it? Nothing. Nothing.”
To right this perceived wrong, Mr Trump has long favoured seizing Iraq’s oil. But after he hinted at the idea with the Iraqi prime minister (who demurred), his aides admonished him. “We can’t do this and you shouldn’t talk about it,” said H.R. McMaster, the national security adviser at the time, according to reports. Still, Mr Trump may be getting what he wants from Iraq in other ways.
When America reimposed sanctions on Iran last year it gave some countries extra time to stop buying Iranian oil before they would lose access to the American market. Most were given 90-day exemptions. In November Iraq, which shares a long border with Iran, was given half that time to cut off electricity and gas imports.
As it negotiated for extensions, American companies made a push for Iraqi contracts. In December, Rick Perry, the energy secretary, led America’s largest trade delegation to Iraq in over a decade. “It was a quid pro quo,” says an oilman. “You give us priority and we’ll give you an exemption.”
From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.
There is a fight over energy in Iraq between the US and Iran. Iraq relies on Iranian gas for nearly half of its energy – gas that is now subject to US sanctions on Iran.
The Iraqi government originally obtained a 45-day sanctions waiver from the US, but that waiver is set to expire next week.
Iraq is particularly sensitive to the issue after protests against electricity cuts rocked Basra earlier in the year and Iraq’s new government is treading a thin line trying to keep both the US and Iran happy, and its people satisfied.
Al Jazeera’s Charlotte Bellis reports:
By John Lee.
US Energy Secretary Rick Perry spent the last two days trying to convince the Iraqi government that it’s in its best interest to cut energy ties with Iran.
But according to a report from Washington Examiner, his efforts have had limited success.
Perry tweeted:
“In bilateral meetings with Iraqi President @BarhamSalih, Prime Minister Abdul-Mahdi, and Speaker Mohammed Al-Halbousi I reaffirmed that the U.S. stands ready to assist the Iraqi people in transitioning from Iranian energy dependence to using their full domestic energy potential.”
Iran is Iraq’s neighbor and an important supplier of the natural gas that fuels the nation’s electric grid, which is crucial to Iraq’s economy and oil industry.
(Source: Washington Examiner)
By John Lee.
Gas exports from Iran to Iraq have reportedly been interrupted as authorities in Iran repair pipeline damage caused during a recent earthquake.
The gas is used for electricity generation, with the cut reducing available power by 2,500 megawatts (MW).
Supplies are expected to be restored over the coming days.
(Sources: Iraq Oil Report, Reuters)
(Picture: Iran-Iraq gas pipeline during construction. Picture credit: Shana)
By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.
Iraq’s new Prime Minister Adel Abdul Mahdi has opted for the policy of his predecessor, Haider al-Abadi, by committing himself to the US sanctions on Iran.
A few hours after he was sworn in, Abdul Mahdi stated Oct. 26 that when it comes to said sanctions, priority will be given to Iraq’s interests and independence.
Nevertheless, Iraq is seemingly incapable of doing without Iran, given their close bilateral economic ties. For this reason only, Iraq demanded that the United States allow the country to continue to import vital Iranian gas and energy supplies and food products. Washington consented Nov. 2, provided that payments not be made in US dollars.
Oil exports from the Kirkuk field, however, are excluded. Iraq’s new Oil Minister Thamer Ghadhban stressed that his country will “review” its current oil exports to Iran.
Iraq Granted Exemption from US Sanctions on Iran’s Energy Exports
Iraq will continue to have access to the energy it needs from Iran to generate and supply electricity, Brian Hook, the special representative for Iran at the US State Department, said.
“Iraq has been granted an exemption” to the energy sanctions the US has re-imposed on Iran, Hook said Monday on a media conference call without providing details.
Iraq is still importing natural gas and electricity from neighboring Iran and has set up a bank account to process payments in Iraqi dinars, according to two Iraqi government officials, who asked not to be identified because they’re not authorized to speak to media, Bloomberg reported on Tuesday.
Iraq’s central bank officials said in August that the country’s economy is so closely linked to Iran that Baghdad would ask Washington for permission to ignore some US sanctions.
Iraq imports crucial supplies from its neighbor including gas for power stations.
(Source: Tasnim, under Creative Commons licence)
The United States has told Iraq that it will be allowed to keep importing crucial gas, energy supplies and food items from Iran after Washington reimposes sanctions on Tehran’s oil sector, three Iraqi officials said.
The waiver is conditional on Iraq not paying Iran for the imports in US dollars, said the officials, who included a member of Iraq’s ministerial committee that oversees energy activities, Reuters reported.
The US sanctions take effect on Nov. 4.
The ministerial committee official said Iraq’s finance ministry had set up an account with a state-run bank where Baghdad would deposit in Iraqi dinars the amounts owed to Iran for the imports.
Central bank officials said in August that Iraq’s economy is so closely linked to Iran that Baghdad would ask Washington for permission to ignore some US sanctions.
Iraq imports crucial supplies from its neighbor including gas for power stations.
(Source: Tasnim, under Creative Commons licence)