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Published 4 months ago

US extends sanctions waiver allowing Iraq to buy electricity from Iran

  • The United States has extended a 120-day waiver allowing Iraq to pay Iran for electricity, with the funds restricted for humanitarian trade. Critics argue it could reward Iran despite pressure to end support for destabilizing groups.
  • The waiver will enable Iraq to maintain its energy imports without facing U.S. sanctions, and around $10 billion in Iraqi payments for Iranian electricity is held in escrow accounts.
  • The Biden administration is confident Iran won't misuse the money, as a vetting process ensures it can only be used for food, medicine, medical equipment, and agricultural goods.
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