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.



Washington, Tehran Exchange Clandestine Messages, Threats

A young Iranian man rides a motorcycle in the center of Tehran next to a poster of Iranian leaders killed by Israel in the 12-day war (AP) 
A young Iranian man rides a motorcycle in the center of Tehran next to a poster of Iranian leaders killed by Israel in the 12-day war (AP) 
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Washington, Tehran Exchange Clandestine Messages, Threats

A young Iranian man rides a motorcycle in the center of Tehran next to a poster of Iranian leaders killed by Israel in the 12-day war (AP) 
A young Iranian man rides a motorcycle in the center of Tehran next to a poster of Iranian leaders killed by Israel in the 12-day war (AP) 

The US and Iran continue to exchange clandestine messages through mediators concerning a possible return to the negotiation table, particularly regarding Iran's nuclear program.

The messages came as both parties assess the extent of damage to Iranian nuclear sites following recent military strikes by the US, and while the IRGC has warned it could use an as-yet-undisclosed missile arsenal facing any future military threats.

Speaking to a crowd of supporters in Iowa on Thursday night, President Donald Trump said, “Iran really got beat up. And I think they want to meet. I mean, I know they want to meet. And if it's necessary, I'll do it.”

The President said the US strikes on Iran had ended hostile rhetoric from Tehran.

“We just did a really great job. And then, of course, you cap it off with the hit, the perfect hit in Iran, where they were talking awfully badly, you know, death to America, death to Israel. They were talking awfully badly,” Trump said at the rally.

“They’re not talking badly anymore, to be honest with you. And we might even meet with them and see,” he added.

Waste of Time

Meanwhile, the administration of former US President Joe Biden and conservative political circles do not share the optimism prevailing in Washington.

In guest essay published at The New York Times, John Bolton, the longest-serving national security adviser in the first Trump administration, spoke about the continued existence of the scientific and technological know-how for Iran to rebuild its nuclear capacity.

“The Israeli-US attacks caused enormous damage to Iran’s nuclear efforts. Enormous, yes, but still not enough,” Bolton wrote.

He argued that the US strikes on Iran were terminated early and unnecessarily.

He said there is zero evidence the Iranian regime is “prepared to abandon their nuclear dreams, and this is certainly not the moment for Washington to throw Tehran political or economic lifelines, particularly not a ‘new’ nuclear deal with the United States,” he wrote.

Therefore, he noted, there is a critical need for continuous American and Israeli surveillance, and the resolve to strike again if necessary.

He said, “In a perfect world, all of Iran’s uranium, at whatever enrichment level, would be removed and stored at a safe place, where what was once Libya’s nuclear weapons program was shipped. Any uranium in the hands of a proliferator is potentially dangerous.”

Bolton added, “Many are still reflexively pursuing the holy grail of an Iran nuclear deal, perhaps including, according to news reports, the Trump administration. Whatever efforts are made, however, will simply be a waste of oxygen.”

Missile Capabilities

For its part, Tehran continues to demonstrate its military might.

Brigadier General Ali Fazli, deputy coordinator of the Iranian Revolutionary Guard Corps (IRGC), warned Israel and the US not to act “foolishly,” saying that any further miscalculation by Iran’s enemies would undoubtedly be met with a far harsher, more devastating, and crushing response from Iran.

In a interview on Friday with Iran’s state tv channel, he said Iran has so far used only about 25 to 30% of its available missile capability, while its production cycle continues to actively support operational readiness.

Fazli also noted that Iran possesses the technical knowledge in this field, but, based on its ideological principles, it does not seek to possess or use this type of weapon.

Israeli Plan

In Israel, Defense Minister Israel Katz on Friday said the army had a plan to prevent Iran from threatening Israel again after the arch-foes fought a 12-day war last month.

The Israeli military will prepare an “enforcement plan to ensure that Iran cannot threaten Israel again,” Katz said in a statement, adding that “the army must prepare on the intelligence and operational level to ensure that the air force maintains air superiority over Tehran.”

Effectiveness of US Strikes

US and Israel's joint strikes on Iran's main nuclear sites continue to provoke heated debate in Washington's political and intelligence circles. While Trump described them as a complete success, US intelligence reports said the strikes have delayed Iran’s program by only few months.

Also, at a press conference held one day following the US strikes on Iran’s nuclear facilities, US General Dan Caine, the chairman of the Joint Chiefs of Staff, said final assessments on their extend of damage would take time.

Meanwhile, reports said a new round of talks between a senior US envoy and Iranian officials is being considered to revive diplomatic communication channels, despite the loss of trust between both sides.

But analysts warn that Iranians may revert to their old tactic of stalling negotiations in the hope for changes in the US policy, as happened in the run-up to the 2015 deal.