US Extends Iraq Sanctions Waiver until before Biden Inauguration

Baghdad buys gas and electricity from its neighbor Tehran to supply about a third of its power sector, worn down by years of conflict and poor maintenance.

The US blacklisted Iran’s energy industry in late 2018 but granted Baghdad a series of temporary waivers, hoping Iraq would wean itself off Iranian energy by partnering with US firms.

The lengths of the exemptions have become a key tool in US policy towards Iraq, demonstrating the level of satisfaction or frustration with Baghdad.

In May, Washington granted Iraq a four-month extension as a “gesture of goodwill” towards Mustafa al-Kadhemi, who had just formed a cabinet seen as “US-friendly”.

But when it renewed the waiver in late September, the Trump administration gave Iraq just 60 days.

This time, it went even shorter: 45 days, a top Iraqi official told AFP, expiring around a week before Trump is set to hand over the White House to President-elect Joe Biden.