Tehran Receives $1.6 Bln in Gas Debt from Iraq

(Asharq Al-Awsat)
(Asharq Al-Awsat)
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Tehran Receives $1.6 Bln in Gas Debt from Iraq

(Asharq Al-Awsat)
(Asharq Al-Awsat)

Iran said on Thursday it has received $1.6 billion from Iraq to settle part of the debts it has sought from its neighbor since 2020 for the supply of gas.

“In light of the active energy diplomacy, and after months of negotiations, $1.6 billion in arrears... for gas exports to Iraq have been received,” Iranian Oil Minister Javad Owji tweeted, Tasnim news agency reported.

“Since the beginning of the year, compared to 2021, the country's gas export volume has increased by 25% and the collection of revenues has also increased by 90%,” Owji added. The Iranian new year begins on March 21.

Iraq’s Electricity Ministry spokesman Ahmed Moussa said the government has started paying off its debts for gas imports from Iran by borrowing from the Trade Bank of Iraq, adding that the Ministry of Finance deposited the money in the Credit Fund.

“We are still relying on Emergency Support Law to repay our dues,” Tasnim quoted Moussa as saying.

Baghdad had been scheduled to pay that amount to Tehran before June.

The debt dates back to 2020, but payment was stalled amid sanctions against Iran by the United States.

Iran’s deputy oil minister, Majid Chegeni, said last month that an agreement had been reached with Iraq for it to pay $1.6 billion in arrears by the end of May.

Despite its immense oil and gas reserves, Iraq remains dependent on imports to meet energy needs.

Iran provides a third of Iraq’s gas and electricity needs, but supplies are regularly cut or reduced, aggravating shortages caused by daily load shedding.

Separately, Iranian state news agency IRNA reported on Thursday that Iranian authorities have seized a vessel carrying 90,000 liters of smuggled fuel in the waters around Kish Island in the Gulf.

The captain and five other crew members were issued with criminal warrants and have been detained, IRNA added.

Iran, which has some of the world’s cheapest fuel prices due to heavy subsidies and the fall of its currency, has been fighting rampant fuel smuggling by land to neighboring states and by sea to Gulf Arab countries.



Ukraine, Western Talks on Ending War Downgraded as Rubio Cancels London Trip 

The Ukrainian national flag continues to fly from British government buildings, with the London Eye wheel seen behind, as peace discussions on Ukraine and Russia are due to take place in London, Britain, April 23, 2025. (Reuters)
The Ukrainian national flag continues to fly from British government buildings, with the London Eye wheel seen behind, as peace discussions on Ukraine and Russia are due to take place in London, Britain, April 23, 2025. (Reuters)
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Ukraine, Western Talks on Ending War Downgraded as Rubio Cancels London Trip 

The Ukrainian national flag continues to fly from British government buildings, with the London Eye wheel seen behind, as peace discussions on Ukraine and Russia are due to take place in London, Britain, April 23, 2025. (Reuters)
The Ukrainian national flag continues to fly from British government buildings, with the London Eye wheel seen behind, as peace discussions on Ukraine and Russia are due to take place in London, Britain, April 23, 2025. (Reuters)

Talks between the US, Ukraine and European officials to discuss ending Russia's war in Ukraine faltered on Wednesday as US Secretary of State Marco Rubio abruptly cancelled his trip to London and negotiations were downgraded.

Rubio's no show prompted a broader meeting of foreign ministers from Ukraine, Britain, France and Germany to be cancelled, although talks continued at a lower level. The US would now be represented by Ukraine envoy General Keith Kellogg.

The downgrading of the talks comes at a critical time, just days after US President Donald Trump warned that Washington could walk away if there was no progress on a deal soon. Trump raised the pressure on Sunday when he said he hoped Moscow and Kyiv would make a deal this week to end the three-year war.

A European official said Rubio had indicated to his British hosts concerns that Ukraine could revert to its toughest positions, making any breakthrough at the talks impossible.

Rubio spoke to British Foreign Secretary David Lammy late on Tuesday and said he looked forward to rescheduling his trip in the coming months after Wednesday's "technical meetings".

Speaking on his arrival in London with the foreign and defense ministers, Ukrainian presidential adviser Andriy Yermak said the talks would focus on ways to achieve a full and unconditional ceasefire as a first step to peace.

"Despite everything, we will work for peace," he said on social media.

The meeting is a follow-up to a similar session in Paris last week where US, Ukrainian and European officials discussed ways to move forward and narrow positions.

During those talks, Trump's special envoy Steve Witkoff presented a paper to the participants outlining proposals in which Ukraine in particular, but also Russia, would need to make concessions, according to three diplomats aware of the talks.

The diplomats differed on whether the position paper was a firm US stance or a starting point to work with Ukraine and its British, French and German allies to formulate a joint position before taking it to Russia.

DIFFICULT PROPOSALS

Some of Washington's proposals were unacceptable to European countries and Kyiv, multiple sources said, leaving the sides divided, but still optimistic that they could reach a compromise.

France's Foreign Minister Jean-Noel Barrot said on Tuesday that the Europeans had detailed to the United States what they view as the non-negotiable aspects of a potential Ukraine-Russia peace accord.

Rubio last week said the US framework that he and Witkoff proposed in Paris received an encouraging reception.

But the sources said that among the US proposals was recognizing Russia's illegal annexation of Crimea, a move that was a non-starter for Europe and Ukraine.

Ukraine and the Europeans would also need to accept the reality of Russia's control of the remaining 20% of Ukraine's territory.

In addition, NATO membership for Ukraine would be ruled out and the US would begin to remove sanctions on Russia.

The London talks were aimed at working to bridge differences and find areas that could satisfy Moscow and open a serious negotiation, the diplomats said.

Beyond Crimea, other major sticking points remain, including Russia's push for lifting of European Union sanctions against it before negotiations are finished, which Europe staunchly opposes, diplomats said.

Washington proposed last week to establish a neutral zone at the Zaporizhzhia nuclear power plant in Russian-occupied Ukraine, according to European diplomats. Ukrainian President Volodymyr Zelenskiy said on Tuesday he would be ready to partner with the United States to restart the plant.

Some of Washington's ideas are also likely to displease Moscow. Two diplomats said the US was not pushing a Russian demand to demilitarize Ukraine and was not opposed to a European force as part of future security guarantees for Ukraine.

Witkoff had not been part of the London talks. But, on Washington's parallel track of diplomacy with Moscow, he will meet with Russian President Vladimir Putin this week in Russia, the White House said.

Since taking office in January, Trump has upended US foreign policy, pressing Ukraine to agree to a ceasefire while easing many of the measures the Biden administration had taken to punish Russia for its 2022 full-scale invasion.

The US president has repeatedly said that he wants to broker a ceasefire in Ukraine by May, arguing the US must end a conflict that has killed tens of thousands and risks a direct confrontation between the US and nuclear-armed Russia.