Iraq, US Talks Lead to ‘Substantial’ Iran Gas Dues Arrangements

(Bloomberg) -- Iraq’s Foreign Minister Fuad Hussein and his U.S. counterpart Secretary of State Antony Blinken have held talks while meeting in Riyadh during an international conference on combating terrorism, foreign ministry spokesman Ahmed Al-Sahhaf said in a statement.

The talks led to “substantial arrangements” regarding the financial dues between Iraq and Iran, according to the statement. Iraq has been struggling to pay dues for imported gas from Iran since the latter came under US sanctions.

Hussein also held talks with Oman’s Foreign Minister Sayyid Badr bin Hamad Albusaidi on the same issue of dues.

Iraq built in the last 10 years two pipelines to import gas to operate its gas-fired power plants, according to Ahmed Moussa, a spokesman for the electricity ministry. The country needs between 55 million and 60 million cubic meters per day. Moussa said in an interview with Bloomberg that Iraq owes Iran around $11 billion.

Iraq has paid Iran €1.5 billion ($1.6 billion) since the formation of current Iraq Prime Minister Mohammed Shia Al Sudani’s government last October, said Dhiyaa Al-Naseri, an adviser to Sudani, in a phone interview. Another €1 billion is being released, Al-Naseri said.

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