BAKU, Azerbaijan, July 3. Iran’s $10 billion worth of assets frozen in Iraq due to the sanctions of the US and Western countries have been unblocked, Iranian co-chairman of the Iran-Iraq Joint Chamber of Commerce, Yahya Al Eshaq said, Trend reports.
According to Al Eshaq, Iraq paid a debt of $10 billion, which was due to Iran's export of gas and electricity to Iraq, to Iran's account in Trade Bank of Iraq.
The official also said that an agreement was reached on spending these funds on non-sanctioned products, including the purchase of essential products and pharmaceuticals. In total, Iran's foreign assets worth $10 billion in Iraq were frozen.
He added that the private sector has no problem getting money for exporting goods to Iraq. The problem is only related to the payment of state institutions, including the funds obtained from the export of gas and electricity.
Al Eshaq noted that the trade turnover between Iran and Iraq is approximately $10 billion a year, excluding gas and electricity exports and technical support.
“The two countries trade is expected to increase to $11 billion for the next Iranian year (March 20, 2024 through March 20, 2025), while in the next few years, it is planned to increase the trade turnover to $20 billion annually,” he said.
The chairman also pointed out that Iraq will be one of the best countries for investment in the region in the next 10-15 years, and this has comparative advantages for Iran. Iraq plans to attract 300 billion worth of investment in the country this year and next year. Of that, 85 percent will be foreign investment. If Iran has a 10 percent share in that foreign investment, a huge opportunity will arise.
Iran exports gas and electricity to Iraq. However, as a result of the sanctions imposed by the US and Western countries, it cannot directly receive the money for the gas and electricity it exports, and this money is kept frozen in Iraq.
On May 8, 2018, the US announced its withdrawal from the Joint Comprehensive Plan of Action (JCPOA) between Iran and the 5+1 group (Russia, China, the UK, France, the US, and Germany), and imposed new sanctions against Iran as of November 2018.
Over the past period, the sanctions affected Iranian oil exports, ranging from above 700 banks, companies, to individuals. The sanctions have resulted in the freezing of Iranian assets abroad.
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