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Iraq Releases 2.5 Bln Euros in Debt to Iran Following US Sanctions Waiver

Iraqi Foreign Minister Fuad Hussein held a meeting with US Secretary of State Antony Blinken on the sidelines of the Riyadh Conference on Thursday (Reuters)
Iraqi Foreign Minister Fuad Hussein held a meeting with US Secretary of State Antony Blinken on the sidelines of the Riyadh Conference on Thursday (Reuters)
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Iraq Releases 2.5 Bln Euros in Debt to Iran Following US Sanctions Waiver

Iraqi Foreign Minister Fuad Hussein held a meeting with US Secretary of State Antony Blinken on the sidelines of the Riyadh Conference on Thursday (Reuters)
Iraqi Foreign Minister Fuad Hussein held a meeting with US Secretary of State Antony Blinken on the sidelines of the Riyadh Conference on Thursday (Reuters)

Iraq on Saturday agreed to pay about $2.76 billion in gas and electricity debt to Iran after receiving a sanctions waiver from the United States.

Iraqi Foreign Minister Fuad Hussein was given the clearance during a meeting with US Secretary of State Antony Blinken on the sidelines of the Riyadh Conference on Thursday, a senior Iraqi foreign ministry official said, who spoke on condition of anonymity because he is not authorized to speak to the media, told Reuters.

Due to decades of conflict and sanctions, Iraq is dependent on imports from Iran for a lot of its gas needs.

However, US sanctions on Iranian oil and gas have hampered Iraq’s payments for imports, putting it in heavy arrears and leading Iran to retaliate by cutting gas flows regularly.

Iraqi Foreign Ministry spokesperson Ahmed Al-Sahhaf said in a brief statement that Hussein had made progress “regarding financial dues between Iraq and Iran during his discussion with his American counterpart in Riyadh” when asked about the funds.

He did not give further details.

According to the Ministry’s Twitter post, Hussein “conducted continuous dialogues with Omani Foreign Minister Badr al-Busaidi for the same purpose.”

Meanwhile, Iraq’s news agency, INA, quoted the media advisor to the Prime

Minister, Diaa al-Nasseri, as saying that Iraq had released a total of 1.5 billion euros of Iranian funds and is preparing to release an additional 1 billion euros.

Later, Yahya Al-e Eshaq, head of the Iran-Iraq chamber of commerce, was quoted by Iranian news agencies as saying that “Part of Iran’s blocked funds in Iraq has been earmarked for haj pilgrims and portions have been used for basic goods.”

He added that it will definitely have a positive impact on the markets because the demands of the Central Bank of Iran (CBI) will be met and basic goods needed in the country have been purchased using the assets.

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Lebanese President Faces Domestic, Foreign Challenges

Newly-elected Lebanese President Joseph Aoun poses for a picture with his family at the presidential palace in Baabda, Lebanon, January 9, 2025. Dalati Nohra/Handout via REUTERS
Newly-elected Lebanese President Joseph Aoun poses for a picture with his family at the presidential palace in Baabda, Lebanon, January 9, 2025. Dalati Nohra/Handout via REUTERS
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Lebanese President Faces Domestic, Foreign Challenges

Newly-elected Lebanese President Joseph Aoun poses for a picture with his family at the presidential palace in Baabda, Lebanon, January 9, 2025. Dalati Nohra/Handout via REUTERS
Newly-elected Lebanese President Joseph Aoun poses for a picture with his family at the presidential palace in Baabda, Lebanon, January 9, 2025. Dalati Nohra/Handout via REUTERS

The election of a new president in Lebanon does not mean the country has come out of the economic and political crises which have gutted it for years. Yet Thursday’s vote marks the beginning of a new phase that carries many challenges for the president and the upcoming government.

It is Joseph Aoun’s responsibility now to appoint a prime minister following binding parliamentary consultations and then form the Cabinet together with the PM.

According to observers, Aoun’s term should carry a roadmap to salvage the country, and a clear plan to address crises and domestic and foreign challenges.

However, there is no magic wand to solve Lebanon’s entire crises.

Instead, Aoun needs a unified working team that should draft a clear ministerial statement that reflects the President’s inaugural speech and his pledge of a “new era” for Lebanon.

“The president's speech constitutes a detailed program for governance. However, his program needs a cabinet capable of implementing it,” former Minister Ibrahim Najjar told Asharq Al-Awsat.

Najjar described the new President as an honest, clean and courageous Lebanese man.

“His election must be followed by the formation of a bold cabinet with new faces, capable of working and making achievements,” he said.

“The Lebanese people expect President Aoun to change the quota-based mentality of politicians. They hope his term will help remove old political figures, who are rooted in the Lebanese quagmire,” the former minister noted.

Former MP Fares Souaid told Asharq Al-Awsat that Aoun’s first task is to implement the Constitution and the National Accord document.

“In the early 1990s, the Constitution was no longer being implemented due to the Syrian occupation of Lebanon. In 2005, the Constitution was again ignored because of Iranian arms.”

Therefore, Soueid said, the Lebanese eagerly expect this new era to constitute a real opportunity for the implementation of both documents.

For years, Lebanon has failed to properly implement its Constitution and UN resolutions, mainly because some political parties had considered their implementation as “a target against their so-called resistance.”

“With the election of President Joseph Aoun, Lebanon has opened a blank page that could meet the aspirations of the Lebanese people, and write a new chapter in the country’s history,” Najjar said.

According to Soueid, Aoun has a task to return Lebanon to its Arab identity. “This is slowly beginning to show through the decline of Iranian influence in the region,” he said.

Also, Soueid said, the new President should mend Lebanon’s relations with the international community by implementing all UN resolutions.

Addressing Parliament and Lebanese people with an acceptance speech, Aoun on Thursday vowed that the Lebanese authorities will have the monopoly on arms and will be committed to a strong state that will extend its sovereignty over the entire territory.

“This is in line with UN resolutions, which if implemented, will bring Lebanon back to the Arab and international scene,” Soueid said.