TEHRAN – The United States has maintained its sanctions waiver allowing Iraq to continue purchasing natural gas from Iran, an advisor to the Iraqi prime minister said.

Farhad Alaaldin, foreign affairs advisor to the Iraqi prime minister, told a local Iraqi television network that the U.S. waiver for Iranian gas imports remains in effect, Mehr News Agency reported.

He noted that a significant portion of Iraq’s power plants rely on Iranian gas, with 43 percent of the country’s electricity generated from gas imported from Iran.

However, the U.S. continues to encourage Iraq to diversify its sources of gas supply, Alaaldin added.

Iran and Iraq signed a five-year extension to their gas export agreement on March 27, 2024, in Baghdad.

Iran supplies gas to Iraq under two separate contracts, one for Baghdad and another for Basra. Talks on Iranian gas exports to Iraq began in the second half of 2010, leading to the signing of a supply agreement for Baghdad in July 2013. The contract for gas exports to Basra was signed in Tehran in November 2015.

The United States has recently announced a decision not to renew a sanctions waiver that previously allowed Iraq to import electricity and gas from Iran without violating U.S. sanctions. This move is part of Donald Trump's "maximum pressure" campaign against the Islamic Republic.

The expiration of the waiver has raised concerns in Iraq about potential power shortages, as the country heavily relies on Iranian energy imports to meet its electricity demands, especially during peak summer months. Iraqi officials have expressed apprehension that the loss of Iranian energy supplies could lead to significant electricity deficits, exacerbating the country's existing infrastructure challenges.

In response to the U.S. decision, Iranian Foreign Minister Abbas Araghchi criticized the move, stating that it targets the innocent people of Iraq by attempting to deprive them of access to basic services such as electricity, particularly ahead of the approaching hot months.

EF/