• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 2 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 6 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 2 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 2 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 9 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 10 days Goldman Betting on Cryptocurrencies
  • 13 days Сryptocurrency predictions
How Much Has Harvard’s Fossil Fuel Divestment Cost It?

How Much Has Harvard’s Fossil Fuel Divestment Cost It?

Harvard University made headlines when…

Would A Turkish Gas Hub Be Politically Palatable For Europe?

Would A Turkish Gas Hub Be Politically Palatable For Europe?

Russia’s latest plan to circumvent…

US Sanctions Bar Iran From Accessing $5B Energy Export Revenue

Due to the U.S. sanctions on Iran, Tehran is unable to use or transfer US$5 billion in revenues it has received from Iraq for supplying natural gas and electricity to its neighbor, an Iranian official told local media on Wednesday.

Even after the U.S. slapped sanctions on Iran’s energy exports, Iraq continues to import natural gas and electricity from Iran under a special waiver that the United States has regularly extended to Iraq.  

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.  

Despite the U.S. waiver for energy trade between Iran and Iraq, Iran is unable to use the money Iraq has paid in Iraqi dinars for the energy it imports from Iran.

Up to $5 billion sits in an escrow account at the central bank of Iraq, but Iran cannot touch it because of the U.S. sanctions, Hamid Hosseini, a spokesman for Iranian Oil, Gas and Petrochemical Products Exporters’ Association (OPEX) told Iranian news outlet Press-TV on Wednesday. Iran has been cut off from the global SWIFT payment system, and because of this, it hasn’t found a way yet to have the money transferred, according to Press-TV.

The situation highlights how the U.S. sanctions are crippling Iranian revenues and how Iran cannot access money from its energy exports even if those exports are allowed under the U.S. sanctions.

Iraq, for its part, may have serious problems in securing its energy needs if the United States doesn’t extend a waiver for an Iraqi bank to process payments for Iraq’s imports of electricity and natural gas from Iran, the head of the Iraqi bank told AFP last week.  

The waiver for the Iraqi bank handling the payments to Iran in Iraqi dinars expires next month. If the U.S. doesn’t extend the waiver, the bank—Trade Bank of Iraq (TBI)—will stop processing payments, the head of the bank Faisal al-Haimus told AFP last week.   

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