Iran and Iraq to Utilize $10 Billion Frozen Funds for Non-Sanctioned Goods

 



Also read : UN Staff in Iraq Accused of Demanding Bribes in Reconstruction Project

Also read : Escalating Tensions: Iraq and Pakistan React to Iran's Strikes, Arab League Gears Up for Emergency Meeting

Iran and Iraq have reached a significant milestone in their economic relations, as a senior Iranian official announced that $10 billion worth of frozen Iranian funds in Iraq will be deposited at the Trade Bank of Iraq (TBI). This move aims to utilize the funds for purchasing goods that are exempted from US sanctions, particularly non-sanctioned commodities like medicine. The frozen funds primarily stem from Iraq's debt to Iran for imports of natural gas and electricity, which the Iraqi government has been unable to pay directly due to US banking sanctions on Tehran. With this breakthrough, both countries see an opportunity to strengthen their economic ties and pursue their national interests.

 

Yahya Ale Eshaq, the head of the Iran-Iraq Joint Chamber of Commerce, expressed optimism about the growing trade volume between Iran and Iraq, which has already exceeded $10 billion. He believes that it will be possible to further increase the volume of trade to $20 billion in the coming years. Ale Eshaq highlighted the importance of benefiting from business opportunities in Iraq and emphasized that Iran's private sector will play a crucial role in driving trade growth in the next fiscal year.

Also read :Baghdad Denies Reports of US Troop Deployment, Reiterates Desire for Coalition Forces Withdrawal

 

For Iraq, this development is particularly significant as the country heavily relies on Iran for its energy needs. Tehran provides a substantial portion of Iraq's gas and electricity supplies. The non-payment of energy debts has led to frequent power outages in Iraq, affecting the daily lives of its citizens. The release of the frozen funds will enable Iraq to settle its outstanding debt and ensure a more stable and reliable energy supply. Moreover, utilizing the funds to purchase essential commodities, including medicine, will contribute to improving the overall living conditions for the Iraqi population.

 

Also read :Iraq Reacts Strongly to Iranian Strikes, Recalls Ambassador and Summons Chargé d'Affaires

This agreement between Iran and Iraq marks a positive step towards strengthening economic cooperation and reducing dependency on external factors. It demonstrates the potential for both nations to expand their trade relations and explore new business opportunities. By leveraging the frozen funds, Iran aims to support its economy and promote the growth of its private sector. The release of $10 billion frozen Iranian funds in Iraq sets a foundation for enhanced economic collaboration and opens up avenues for increased trade between the two countries. It reflects a strategic opportunity for both nations to pursue their national interests while fostering mutually beneficial relations.


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