“The U.S. Department of State did not renew the waiver for Iraq to purchase Iranian electricity,” a Department spokesperson told Rudaw. “This decision is in line with National Security Presidential Memorandum 2 and ensures we do not allow Iran any degree of economic or financial relief.”
The most recent 120-day waiver, issued by Trump’s predecessor Joe Biden, expired on Saturday. But Trump announced in early February that he would not renew the waiver as part of his “maximum pressure” campaign against Iran, which also aims to drive Tehran’s oil exports down to zero.
“We urge the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible,” the State Department stated. “Iran is an unreliable energy supplier. It is unable to meet its own domestic demand, let alone export.”
It added that Iraq’s transition away from Iranian energy provides an opportunity for American companies, which are “world-leading experts,” to assist Baghdad in developing its energy sector and electricity interconnections with “reliable partners.”
On Saturday, the Iraqi electricity ministry told Rudaw that Baghdad was working on obtaining a new exemption from Washington and that alternative measures have been taken in case another waiver is not provided.
Iraq is largely dependent on its energy imports from Iran, though the supply is irregular. Iran suspended gas exports for weeks during the winter when there was a shortage.
Baghdad is also working to direct its own natural gas to power generation plants and end the damaging practice of flaring. Gas imports from Jordan, Turkey, and Turkmenistan are also being considered.
Iraq is constructing a 1,000-megawatt solar project in Basra with France’s TotalEnergies, has agreements with Saudi Arabia’s ACWA Power for a 1,000-megawatt plant in Najaf, and is close to a deal with the UAE’s Masdar for another 1,000 megawatts across four provinces, according to the electricity ministry.
Diyar Kurda contributed to this report.