Iran signs $4 billion trade deal with Iraq | Rare Techy
Iran has concluded a $4 billion contract for the export of technical and engineering services with Iraq, the director of the board of the Iranian Oil, Gas and Petrochemical Products Exporters Association (OPEX) said.
The agreement is on the way to eliminate part of the shortfall caused by Iran’s exports to Iraq in the sectors of technical and engineering services, futures, production and medication over the past year.
“During the eight months of this year [beginning on March 20]exports to Iraq, except for electricity, total $4.7 billion, down $1.4 billion compared to the same period last year, “said Hamid Hosseini.
The official touched on the shocks in the Iraqi market and uncertainty about the formation of the government in the Arab country last year, he said that Iraqi imports will increase in the next four months .
Iran’s export to Iraq is expected to reach $8-9 billion, Hosseini said.
The new prime minister of Iraq, Mohammed Shia al-Sudani, went to Iran on Tuesday and was welcomed by President Ebrahim Raeisi who expressed the hope of strengthening relations.
Raeisi said that financial, financial and general business topics were discussed, and that the talks between the two partners “will help to solve bilateral problems”.
Sudani thanked Iran for its continued supply of air and electricity, which Iraq rarely supplies, while he pointed to discussions about “measures” to allow Iraq to pay Iran. for these services.
Iraq is dependent on Iran for natural gas which produces 45 percent of its 14,000 megawatts of electricity consumed daily. Iran will supply another 1,000 megawatts directly, making it an energy source for its Arab neighbor.
The US has been able to extend the sanctions for 45, 90 or 120 days, so that Baghdad can bring the strength of Iran, but is not happy with the close relationship and trade between in Baghdad and Tehran.
Years of war since the US invasion in 2003 have damaged Iraq’s electrical infrastructure and caused the loss of some 7,000 megawatts.
In the past, officials in Baghdad have said that it will not be easy to replace imports from Iran because it will take years to build Iraq’s energy infrastructure.
They said the U.S. proposal does not accept Iraq’s strong interests and the strained relations between Baghdad and Tehran.
Iraq also imports a wide range of goods from Iran, including food, agricultural products, household appliances, gases and auto parts.