• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 11 days Does Toyota Know Something That We Don’t?
  • 4 days America should go after China but it should be done in a wise way.
  • 14 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 10 days World could get rid of Putin and Russia but nobody is bold enough
  • 12 days China is using Chinese Names of Cities on their Border with Russia.
  • 3 hours How Far Have We Really Gotten With Alternative Energy
  • 15 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 12 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population

Iran To Buy Covid Vaccines With Income From Gas Exports To Iraq

Iran will use part of the proceeds from its electricity and natural gas exports to Iraq to buy COVID-19 vaccines from Europe, Iranian state media reported on Wednesday, quoting Energy Minister Reza Ardakanian.

Earlier this week, Iran cut its energy exports to its neighbor Iraq, saying that Baghdad owes it some US$6 billion in arrears for the electricity and natural gas supply.

Major Iraqi power plants are dependent on Iranian natural gas supply, and Iraq also imports electricity from Iran, as Baghdad’s power generation is not enough to ensure domestic supply. In recent years, Iraq has even received waivers from the United States to continue importing natural gas and electricity from Iran, despite the U.S. sanctions on Iran’s energy industry and exports.

On Monday, the National Iranian Gas Company (NIGC) said, as carried by Iran’s oil ministry’s news service Shana, that “The Iraqi Ministry of Electricity owes more than $5 billion in gas bills to the National Iranian Gas Company, of which $3 billion remains blocked and inaccessible in the Iraqi TBI Bank, and more than $2 billion is overdue debt and remains unpaid by the Iraqi Ministry of Electricity. In addition, the Iraqi side owes more than $1 billion to the National Iranian Gas Company for contractual offenses under the agreement.”

Iran’s Ardekanian visited Baghdad on Tuesday for talks with his Iraqi counterpart, and an agreement was reached for the Islamic Republic to resume normal flows of natural gas to Iraq. 

Iraq has cleared some of its debt for importing electricity and natural gas from Iran, Ardekanian said, adding that Iran would buy vaccines and essential goods with the money.

A bank account in euros will soon be opened in Iraq, which would allow Baghdad to repay its dues for the energy it receives from Iran, without using transactions in U.S. dollars, Ardekanian said on Wednesday, cited by the Islamic Republic News Agency (IRNA).

By Tsvetana Paraskova for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News