BAGHDAD: The United States will grant Iraq a brief 45-day extension to a waiver allowing Baghdad to continue importing Iranian gas despite American sanctions, an Iraqi official told AFP on Wednesday.
The US slapped tough sanctions on the Iranian energy sector in late 2018 and initially granted Iraq a 45-day waiver before repeatedly extending it for 90 or 120 days.
Baghdad relies on gas and electricity imports from its neighbor Tehran to supply about a third of its power grid, crippled by years of conflict and poor maintenance.
“The extension this time will be for just 45 days, with some strict conditions,” the senior Iraqi official said.
The two countries were still in talks over what exactly those conditions were.
Washington has repeatedly insisted Iraq wean itself off Iran by partnering with American companies to capture natural gas to use for its power plants and to improve transmission of electricity into homes to reduce waste.
Iraq signed a memorandum of understanding with US powerhouse General Electric last year and has been in talks with other energy firms, but contracts have not yet been signed.
Both American and Iraqi officials told AFP the US was frustrated with Baghdad’s slow progress.
The latest waiver was set to expire this week but the US did not want to create additional pressure on prime minister-designate Mohammad Allawi, who is trying to form a new cabinet at a time of turmoil in Iraq.
“Washington didn’t want to hamstring Allawi just as he was starting out,” the official said.
Failing to renew the waiver could have exposed Iraq to secondary sanctions for dealing with Iran’s energy sector and central bank, both blacklisted by the US.
The waiver has allowed Iraq to continue importing about 1,400 megawatts of electricity and 28 million cubic meters (988 million cubic feet) of Iranian gas over the last 15 months.
Baghdad pays for the imports by depositing Iraqi dinars into an account at the state-owned Trade Bank of Iraq, which Iran is technically allowed to use to purchase non-sanctioned goods.
A few payments have been made but Iran had been unable to access the funds due to ongoing technical disputes.
TBI chairman Faisal Al-Haimus told AFP last month that if the waiver was not renewed, his bank would be forced to stop processing the payments.
US to renew Iraq sanctions waiver for 45 days
https://arab.news/n9ubq
US to renew Iraq sanctions waiver for 45 days
- The US slapped tough sanctions on the Iranian energy sector in late 2018 and initially granted Iraq a 45-day waiver
- Baghdad relies on gas and electricity imports from its neighbor Tehran to supply about a third of its power grid
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
