TEHRAN (Iran News) – Tehran, Baghdad Reach Agreements in Supplying Energy. Iraq’s electricity minister said that Iran and Iraq had reached agreements in supplying energy, electricity, and gas for Iraq.
Iran’s Energy Minister, Reza Ardekanian, and Majid Mahdi Hantoush attended a press conference after their meeting and elaborated on Iran and Iraq’s cooperation in supplying energy.
“Iran has always supported Iraq in supplying fuel for Iraq’s power plans whenever needed,” Hantoush noted.
The Iraqi minister went on to say that Iran and Iraq’s relations are expanding and continuous, adding that negotiations over Iraq’s debt to Iran have taken place.
“Iraq has to import energy since the country’s need is three times more than our capacity. This year we supplied 22000 MV electricity, reaching 28000 MV in special hours,” he highlighted.
“Due to climatic conditions in Iraq, Iraqis use electricity six times more than Iranian,” Hantoush referred.
“Negotiations and bilateral meetings between Iraq and Iran continue until we discuss all existing problems and finding solutions, especially about Iraq’s debts to Iran,” he concluded.
Iran’s energy minister also speaking in this joint press conference said that Iran helps Iraq reduce its electricity waste from 50% to 20%, meaning that 30% will be added to Iraq’s energy source.
Ardekanian said that the two countries had reached a framework to continue cooperation.
“Although Iran has a 50% decrease in the rain this year, it has been fully planned to supply water, electricity, and import to neighboring countries,” Ardakanian added.
“After the Islamic revolution, Iran’s energy capacity has increased from 7000 MV to 85000 MV. In comparison, our maximum contract with Iraq is 1300 MV, and the final price must be paid in Euro to Tavanir Company,” highlighted the minister.
Ardakanian states that Iran-Iraq Common Economic Commission has resumed its activity since last Iranian year (starting on March 21) and had expanded its relations with Oil and Energy ministries.
Referring to the coronavirus pandemic, Iran’s energy minister noted that negotiations took place with Iraq’s Trade Bank to supply needed currency to import coronavirus vaccine, adding that it is expected that the first payment will be made these days.
Ardakanian also said Iran would use its funds blocked in neighboring Iraq to purchase vaccines from Russia against the COVID-19 disease.
Speaking on the sidelines of a meeting with Hantoush in Tehran on Sunday, Ardakanian said Iranian President Hassan Rouhani has ordered that the money needed for buying COVID-19 vaccines be provided from funds held in different parts of the world.
“According to an agreement between Iran and Russia, part of Iraq’s debt to Iran will be spent on purchasing Russian vaccines,” the minister said.
Ardakanian said necessary arrangements with Baghdad and Moscow have been made and “we expect that the first payments will be made in the coming days.”
Iran has billions of dollars in a Trade Bank of Iraq (TBI) account which processes Iraq’s payments for imports of natural gas and electricity from Iran.
However, the funds have been frozen because of the US sanctions on Iran which restrict the use of the dollar for transactions involving Tehran.
On Sunday, the Iranian Red Crescent Society (IRCS) announced that it has imported the largest consignment of COVID-19 vaccines from China.
“This consignment of one million doses of the coronavirus vaccine arrived today at Tehran’s Imam Khomeini Airport,” said IRCS Secretary-General Mohammad Hassan Ghosian Moghaddam.
Other than importing reliable foreign vaccines, Iran has developed its own vaccines which are currently in the last phases of human trials.