Iraq Worried US Sanctions May Extend To Iran's Gas Once Oil Import Waivers Expire - Source

Baghdad is concerned that the United States may extend its Iran sanctions to also ban gas exports from the Islamic republic, which play an important role in electricity generation in Iraq, a source close to the Iraqi government told Sputnik on Monday

BAGHDAD (UrduPoint News / Sputnik - 22nd April, 2019) Baghdad is concerned that the United States may extend its Iran sanctions to also ban gas exports from the Islamic republic, which play an important role in electricity generation in Iraq, a source close to the Iraqi government told Sputnik on Monday.

US President Donald Trump announced earlier in the day that he would not be reissuing sanctions waivers for countries importing oil from Iran. Trump previously issued waivers to China, Japan, India, Italy, Greece, South Korea, Taiwan and Turkey back in the fall.

"Iraq is not concerned by this decision because we do not import oil from Iran. We only import gas for electricity and some agricultural production purposes ... Washington gave a [waiver] extension [to countries] importing Iranian oil a while back.

However, the United States may put Iraq in an uncomfortable position, when the period [of the waiver] ends, because Iraq needs gas from Iran for the functioning of some of its power stations," the source said.

In March, Iraq was granted a 90-day extension to a waiver it received after Trump first announced the sanctions in November, allowing it to continue to import energy resources from Iran.

Iraq relies heavily on Iranian gas to feed its power grid. According to Iraq's Electricity Ministry, halting Iranian gas imports could cost Baghdad 4,000 megawatts per day. On Monday, the ministry's spokesman said that Iraq did not have any alternatives to replace Iran's gas imports.