TEHRAN – Iranian Energy Minister Reza Ardakanian said on Wednesday that Iraq owes Iran the money for less than two months of electricity imports and the rest of the dues in this sector have been settled, IRIB reported.

Speaking on the sidelines of the inauguration ceremony of some energy projects in the 35th week of the ministry’s A-B-Iran program, Ardakanian said Iraq has signed two separate deals for importing electricity and gas from Iran and as of Wednesday, January 6, based on the electricity export deal the country owes Iran less than two months of dues.

"During all the years since 2004 when we have been exporting electricity to this country, the dues have been received directly or have been paid to our private sector contractors, so Iraq does not owe us much in the electricity sector," Ardakanian explained.

The official noted that he will follow up on the issue on a daily basis until all the debts are fully settled.

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

In late December 2020, Iran reduced its gas exports to the neighboring country while the electricity exports were kept intact.

As the Iranian head of the two countries’ Joint Economic Committee, Ardakanian visited Iraq on December 29, 2020, to meet with senior officials from the country and discuss various issues including the country’s energy debts to Iran.

During the meeting, the two sides reached an agreement based on which Iraq is going to open a euro savings bank account to deposit the country’s energy debts to Iran.

“Iraq's recent and past debts to our country will be transferred and saved in this account after being exchanged to euro,” the minister said in late December 2020.

EF/MA