US extends sanctions waiver allowing Iraq to buy electricity from Iran

Secretary of State Antony Blinken signed the 120-day waiver extension and it was transmitted to Congress on Tuesday, US officials said. (AFP)
Short Url
Updated 15 November 2023
Follow

US extends sanctions waiver allowing Iraq to buy electricity from Iran

  • There is roughly $10 billion in Iraqi payments for Iranian electricity currently being held in escrow accounts in Iraq

WASHINGTON: The Biden administration has extended by four months a sanctions waiver that will allow Iraq to continue to purchase electricity from Iran and gives Iran limited access to the proceeds to buy humanitarian goods.
Secretary of State Antony Blinken signed the 120-day waiver extension and it was transmitted to Congress on Tuesday, US officials said. The move is likely to draw criticism from Iran hawks on Capitol Hill and elsewhere who believe the extension will reward Iran at a time when it is coming under increasing pressure to end its support for proxy groups, including Hamas, that are destabilizing the Middle East.
There is roughly $10 billion in Iraqi payments for Iranian electricity currently being held in escrow accounts in Iraq, and the waiver will allow Baghdad to maintain its energy imports without fear of US penalties for violating sanctions on Iran.
It will also keep in place a provision — included in the last 120-day waiver — under which portions of the electricity proceeds can be transferred to accounts in Oman and then converted to euros or other widely traded currencies for Iran to buy non-sanctioned products.
The officials, who spoke on condition of anonymity to discuss the decision-making process, said Blinken signed the waiver mainly because the administration doesn’t want to cut Iraq off from a critical source of energy.
But, they said the administration is confident Iran will not be able to use any of the money for nefarious purposes. They said a rigorous vetting process is in place to ensure that the cash can only be used for food, medicine, medical equipment and agricultural goods.
Blinken visited Baghdad on Nov. 5 and met with Iraqi Prime Minister Mohammed Shia Al-Sudani during the course of a Middle East trip focused on the Israel-Hamas war and efforts to prevent it from spreading into a broader regional conflict.
The officials added that only a small amount of the money held in Iraq had been transferred to Oman during the past 120 days and that none of the money now held in Omani banks had yet been spent.
The waiver is similar to one signed by Blinken earlier this year, which freed up some $6 billion that South Korea had paid to Iran for oil imports in exchange for the release of Americans held prisoner by Tehran. Under that waiver, the money held by South Korea was transferred to banks in Qatar and is also restricted for the purchase of humanitarian supplies.
However, Iran hawks point out that the waivers can allow Iran to free up domestic revenue it would have otherwise spent on humanitarian goods to fund proxies like Hamas, Lebanon’s Hezbollah and the Houthis in Yemen.


Asylum applications drop to 40-year low in Sweden

A picture taken on June 26, 2023, shows migrants receiving food and clothes from an NGO in Athens. (AFP)
Updated 7 sec ago
Follow

Asylum applications drop to 40-year low in Sweden

  • Asylum seekers and their family members accounted for just 6 percent of the total, compared with 31 percent in 2018, when total immigration was 133,000

STOCKHOLM: The number of people applying for asylum in Sweden dropped by 30 percent in 2025 to the lowest level since 1985, with the ​right-of-center government saying it planned to further tighten rules this year ahead of an election in September.
The ruling minority coalition, which is supported by the anti-immigration Sweden Democrats, has made cutting the number of asylum seekers a key policy platform since taking power in 2022. It blames a surge ‌in gang ‌crime on decades of loose ‌asylum laws and ​failed ‌integration measures under previous Social Democrat-led governments.

FASTFACT

The Swedish government has cracked down on asylum seekers, made it more difficult to gain residency and citizenship, and introduced financial incentives for immigrants to leave the country.

“The change is not just about numbers in terms of lower immigration, it’s also about the way that’s made up, who is coming to Sweden with the proportion from asylum at a record low,” said Immigration Minister Johan Forssell.
The number of immigrants, excluding refugees from Ukraine, fell to 79,684 last year from 82,857 in 2024, according to figures from the Migration Board. 
Asylum seekers and their family members accounted for just 6 percent of the total, compared with 31 percent in 2018, when total immigration was 133,000.
The number of people either voluntarily returning to another country or being expelled by authorities was also up.
“This is an area which is a high priority for us,” Forssell said.
The government has cracked down on asylum seekers, made it more difficult to gain residency and citizenship, and introduced financial incentives for immigrants to leave the country since it came to power.
Forssell said the government planned to further tighten regulations in the coming year, including a new law to increase the number of returnees and stricter citizenship rules, among other measures.
Swedes will ‌vote in what is expected to be a tight general election in September.
Meanwhile, Denmark’s strict immigration policies drove asylum admissions to a historic low in 2025, with 839 requests granted by the end of November, the government said.
“It is absolutely critical that as few foreigners as possible come to Denmark and obtain asylum. My main priority is to limit the influx of refugees,” said Immigration Minister Rasmus Stoklund in a press release.
According to the ministry, “there have been very few years when the annual total remained below 1,000 ... 2025 will be a year with a historically low number of residence permits granted on asylum grounds.”
Denmark registered 1,835 asylum requests by November 2025.
The country’s immigration approach has been influenced by far-right parties for more than 20 years, and Prime Minister Mette Frederiksen, leader of the Social Democrats, has pursued a “zero refugee” policy since taking office in 2019.
Copenhagen has, over the years, implemented a slew of initiatives to discourage migrants and make Danish citizenship harder to obtain.
In 2024, the country of 6 million people accepted some 860 of the 2,333 asylum requests lodged that year.