Iraq Set to Retain Ties With Iran Amid US Obstructive Moves

The Iraqi government is working toward maintaining ties with Iran, its top trade partner, in the face of the United States’ sanctions on Tehran, which are aimed at minimizing its international economic relations. 
The newly elected president, Barham Salih, said in a Sunday visit to Kuwait that keeping “good and stable” relations with Iran is in his country’s best interest. 
“Iran is a neighboring country and our interest lies in having good and stable relations with Iran,” he was quoted as saying by Reuters. 
After withdrawing from the 2015 deal on Iran’s nuclear program, the US reimposed sanctions on Tehran in two rounds, the second of which targeting the country’s key oil and banking sectors took effect on Nov. 5. 
While the sanctions are aimed at crippling Iran’s economy, they naturally affect its trade partners, including Iraq that relies heavily on Iranian natural gas and electricity in particular. 
Iraq’s economy is also closely linked to Iran, according to the country’s central bank officials. 
Salih urged the US to consider Baghdad’s political and economic position, as the two sides negotiate relief for Iraq from the sanctions. 

Balanced Relations 

“We do not want Iraq to be burdened with the US sanctions on Iran,” he said, adding that Iraq wanted to maintain “balanced” relations with all its neighbors and the international community. 
Earlier last week, Ayad Allawi, Iraq’s former prime minister and leader of the al-Wataniya faction in parliament, had warned of significant impact of anti-Iran sanctions on the Arab country, ISNA reported.  
He said in a televised speech that he had sent a letter to the secretary-general of the United Nations “calling on him to take into account the special relationship between Iraq and Iran regarding the US sanctions on Iran.”
Allawi also called for a meeting involving the United Nations, Iraq and Iranian officials on the exclusion of Iraq from sanctions due to its exceptional circumstances.

Temporary Relief 

The United States on Friday gave Iraq temporary relief for 45 days to continue purchasing natural gas and electricity from Iran on condition that it did not pay for the imports in US dollars. 
The US State Department’s representative on Iran, Brian Hook, told reporters in Washington on Wednesday that the electricity waiver will definitely help Iraq limit electricity shortages in the south. 
“Iraq is a friend and a partner, and we are committed to its stability and prosperity,” AFP quoted him as saying. 
A well-informed Iraqi source also said Baghdad is now expected to demonstrate to the US how it would wean itself off Iranian energy supplies. 
“The US gave us 45 days to give them a plan on how we will gradually stop using Iranian gas and oil,” the source said.
The American government also exempted eight countries, namely China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey, at least temporarily from the ban on buying Iranian oil due to special circumstances or so to not disrupt energy markets.