Iraq signs a deal to barter energy with Iran
Iraq has previously signed a bater trade agreement with Lebanon to supply energy for services
Iraqi PM confirmed today that his country has agreed with Iran to barter Iranian gas for Iraqi petroleum.
The landmark agreement comes amidst a growing electricity crisis in Iraq due to shortages of necessary gas from Iran. Furthermore, the US involvement in sanctions enforcement restricted Iraq's ability to pay Iran in cash.
The step will help overcome US sanctions. Iran has an outstanding agreement with Syria and was working on a similar agreement with Lebanon.
It is important to note that months ago Iraq declared it will sell energy in yuan exclusively but since nothing seems to have materialised from this. It has also signed a bater trade agreement with Lebanon to supply energy for services. By de-dollarising part of its trade, Iraq is seeking to undermine the US heavy hand on the Iraqi financial system. Nonetheless, barter trade is expected to be limited.