LONDON: Pompeo offered Abdul-Mahdi a deal that would give a long-term exemption from sanctions against Iran
The United States has offered to Prime Minister Adel Abdul Mahdi, a deal that would exclude Iraq from the implementation of sanctions imposed on Iran for years, while it indicated that Baghdad may agree to them, a London newspaper said in a report published on Monday, May 06, 2019.
"The United States is closely monitoring the results of Iraq's moves on the European arena to seek reliable partners in the energy field," the London-based Arabic newspaper Al-Arab reported. "Washington offered Baghdad an attractive formula to deal with the sanctions imposed on Iran."
"The United States supports Iraq's efforts to reduce its reliance on Iran in the energy sector, but it does not want to push it into the arms of European companies such as Siemens, which competes with American companies like General Electric," the paper quoted sources close to Prime Minister Adel Abdul Mahdi's office as saying. In the contracts of this sector. "
The sources said that "the US administration tried to know the nature of the understandings reached by Iraqi Prime Minister Adel Abdul-Mahdi during his European tour recently, including Germany and France."
On his return to Baghdad, Abdulmahdi received a phone call from US Secretary of State Mike Pompeo.
"The importance of strengthening cooperation between the two friendly countries and deepening economic relations and Iraq's desire to transfer technology and expertise to Iraq and create job opportunities inside Iraq and the development of vital sectors in it," Abdul Mahdi stressed during the call, stressing the importance of strengthening the efforts of the parties to resolve the final negotiations, ExxonMobil to develop the Iraqi energy sector. "
"The American offer is a lifeline for the government of Abdul Mahdi, who can not stop importing Iranian electricity and gas for fear of upsetting Tehran," the paper said.
During his conversation with the US Secretary of State, Abdulmahdi reviewed "the results of his European tour and other important issues of mutual interest."
For his part, Pompeo stressed "the support of the United States for the Iraqi government and its foreign policy," while welcoming "Iraq's role and its great position in the region and the promotion of economic, political and cultural cooperation between the two countries."
This is perhaps the first time that the US-Iraq "one-package project" has been referred to.
The newspaper quoted sources as saying, "The US minister offered to Abdul Mahdi to grant Iraq an exception to the implementation of sanctions on Iran, in exchange for US companies to facilitate the implementation of contracts in the electric power sector."
"The United States believes that it may take up to four years to resolve the problem of power shortages and that it will spend about $ 20 billion in this sector, not $ 14 billion as the government of Abdul Mahdi," she said. "Washington is not opposed to linking its companies to Facilities for the implementation of projects with sanctions file on Iran. "
Iraq imports electricity from Iran and the gas needed to operate its power plants, meaning that its main purchases are for one sector.
"According to the US deal on Iraq, Baghdad can continue to buy electricity and gas from Iran, until the American companies finish implementing projects that allow Iraq to generate the energy it needs at home," the paper said.
"This formula will guarantee the United States to operate its companies in Iraq as part of huge financial investments, as well as ensure that Iraq reaches the stage of self-sufficiency of electricity, to get rid of its organic association with Iran in this file."
"The US offer may be a lifeline for the government of Abdul Mahdi, who can not stop importing Iranian electricity and gas for fear of angering Tehran first and deepening the shortage in the Iraqi energy sector, It can not also rebel against US sanctions against Iran, which could also punish Iraq. "
Iraq has announced the signing of a preliminary agreement with Siemens includes improving the performance of the electrical system to achieve "adding new generation capacity and the development of existing power stations and the expansion of electricity transmission networks."
Initially, the first contracts with the German company will be worth about 700 million euros out of about 14 billion dollars allocated by Iraq for urgent contracts in the energy sector.
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