Exclusive: US, Iran plan ‘oil for goods’ deal to ease sanctions

BAGHDAD: Iranian and US officials are in the early stages of negotiating an agreement to allow Tehran to sell limited quantities of oil in exchange for goods, Iraqi sources have told Arab News.

Iraq will be the transit point for both the oil exports and the import of goods, according to officials in Baghdad familiar with the talks.

Washington’s stated policy is for sanctions to reduce Iranian oil exports to zero, and US government sources denied to Arab News that there was a deal to permit limited sales. However, a senior Iraqi official familiar with what he described as “ongoing talks” said the deal was “a goodwill gesture offered by the Americans to calm the escalation between the two countries, although it is still in its preliminary stages.”

Iran arms, equips and controls dozens of armed factions in Iraq, Syria, Lebanon and Yemen, whose activities are a serious threat to the US and its allies in the region. One of the aims of US economic sanctions is to prevent Tehran from funding these groups.

“The main goal that the Americans are looking to achieve is preventing the Iranians from obtaining any cash,” a second Iraqi official familiar with the talks told Arab News.

“The deal will allow the Americans to monitor and control everything, the amount of Iranian crude oil exported and the kind of goods imported, and be sure that no cash is paid.

“This will paralyze the Iranians and force them to abandon the armed factions they fund and will keep them busy dealing with the internal Iranian situation.”

The initial deal is thought to have been concluded by Bijan Zanganeh, the Iranian minister of oil, on an unannounced visit to Iraq a month ago. It is not yet final because details such as the amount of oil to be sold, the main buyer and the kind of goods to be imported are still under discussion.

“The Iranians suggested one of the European countries as a key buyer for the oil but the Americans refused,” a source familiar with the talks told Arab News.

“The confirmed thing so far is that Iraq will be the transit area for the exchange operations, so the US can closely monitor the commitment of the Iranians.”

Oil for goods

The agreement is based on the UN oil-for-food program implemented in Iraq in 1995 to ease the impact of sanctions imposed after Saddam Hussein’s invasion of Kuwait in 1990. The program allowed Iraq to sell oil in exchange for food, medicine, and other humanitarian needs under UN supervision without obtaining funds to boost its military.

“The targeted shape of the suggested deal is almost a copy of the oil-for-food program, but Iraq will replace the UN as the supervisor of procurement and receipt and disbursement of funds,” a prominent Shiite leader and a member of Iraq’s oil and power parliamentary committee familiar with the talks told Arab News.

“The proposal is to open a bank account in the Iraqi Central Bank in favor of Iran to deposit the money obtained from the sale of Iranian oil, and then for Iraq to pay for Iranian purchases later, using this money.

Monitoring

“This mechanism will enable the Americans to follow the money closely and monitor Iran’s disbursements.”

Another member of the oil and power parliamentary committee said: “The opening of the bank account, the receipt of the oil money and the payment of the invoices for Iran’s purchases are among the points agreed upon.”

A prominent Shiite leader familiar with the deal told Arab News it also included maintaining all the pre-sanctions contracts that Iran signed with European, Chinese and other Asian companies to provide medical supplies and spare parts for the oil industry. Iraq will financially cover these contracts from the money in the proposed Iranian account.

The deal would also solve another issue. Iraq imported 1,100MW of electricity per day from Iran for many years, in addition to 28 million cubic meters of gas that generates a further 4,000MW.

Supplies ceased last summer because Iraq was unable to pay as a result of US financial sanctions on Iran. The subsequent power shortages led to violent demonstrations in the Shiite-dominated provinces in southern Iraq. At least 17 people were killed, including members of the security forces, and government and party offices, including the Iranian Consulate, were burned.

Arabnews.com

SUROUN REVEALS THE NEXT GOAL OF ABDUL MAHDI

BAGHDAD – Mawazine News – Revealed the alliance of Souron, on Thursday, the reality of the intention of Prime Minister Adel Abdul Mahdi to resign from his post, in the coming days.

The leader of the coalition MP Raed Fahmi said in a statement received, “Mawazine News,” a copy of it, “The news that spoke about the intention of Abdul-Mahdi to resign from his post, is incorrect, but he aspires to complete his government program, according to the time allotted to him.”

He pointed out that “the publication of such false news, or rumors, behind the Iraqi political parties, and may be behind the outside parties, have certain goals, to broadcast such rumors, there is no truth on the ground.”

Mawazin.net

A PARLIAMENTARY MOVEMENT IS ON THE BRINK OF OUSTING MINISTERS IN THE IRAQI GOVERNMENT

The alliance of the conquest, led by Hadi al-Amiri on Wednesday that there is a parliamentary movement to dismiss four ministers in the current federal government headed by Adel Abdul Mahdi.

“After the completion of the ministerial cabin, there will be a proposal to dismiss some ministers in the government because of the existence of files on them from accountability and justice and criminal restrictions,” MP Ahmad al-Kanani told Ashqaf News.

Kanani said that “the House of Representatives is going to do this thing very soon, and these ministers, who will be told, do not exceed the number of four,” without mentioning their names.

The parliamentary legal committee has recently announced the receipt of Prime Minister Adel Abdul Mahdi, the request for the dismissal of four ministers for violating the conditions of “Istuzar.”

Shafaaq.com

WILL ABDUL MAHDI RESIGN AFTER EID? .. A CLOSE SOURCE REVEALS THE TRUTH

Special – balance News – revealed a source close to Prime Minister Adel Abdul Mahdi, Thursday, about the fact that the news published by the media about the recent intention to resign after the Eid al – Fitr that.

The source said in an interview with “Al-Mawazin News” that “some media published a report to an Arab newspaper, the intention of Abdul-Mahdi to submit his resignation to the House of Representatives after Eid al-Fitr, because of political differences.”

He added that “this information is nude for health,” noting that “Abdel-Mahdi aspires to continue the implementation of the government program, which was announced, either the issue of completing the formation of the government, it will be after the blessed Eid.”
Iraqi media published a report on Abdulmahdi’s intention to resign due to his failure to complete the government as a result of political differences over the candidates.

Mawazin.net

Parliament will resume its next Tuesday and 30 laws on the agenda

Information / Baghdad ..  The House of Representatives intends on Tuesday to resume its meetings after the end of the holiday of Eid al-Fitr, while preparing to vote on 30 draft law sent by the federal government so far.

“The parliament will resume its meetings starting next Tuesday after the end of the Eid al-Fitr holiday,” MP Hussein al-Aqabi said. “The agenda will be full of important laws, but it has not yet been formally announced.”

He added that “the government sent more than 30 law proposals, some of which read a first reading and some of them a second reading, some of which need discussions and deliberations between the parliamentary committees,” noting that “the initial approval of projects will be service laws that concern the Iraqi citizen.”

On 23 May, the House of Representatives lifted its meeting to another notice after it voted to allow the representation of Christians, Isidis, Sabians and Kurds in the Martyrs’ Committee. It ended the first reading of the proposed amendment to the provincial elections law.Finished 25 s

Almaalomah.com

Abdul Mahdi to present names of new ministers after Eidul Fitr

Member of Parliament Hussein Arab, member of Building Alliance, said that Prime Minister Adil Abdul Mahdi will present the names of the new ministers to the parliament after Eidul Fitr.

In press statements, Arab said that Abdul Mahdi told MPs that he will present the names even no consensus was reached concerning them.

He added that MPs of Baghdad told Abdul Mahdi that they will okay his candidates only if they comply with the legal and constitutional requirements.

Abdul Mahdi had failed two present suitable candidates to the ministries of defense and security to the parliament for a several months now and that reflected the weakness of Abdul Mahdi and his government especially that all his candidates were agents to Iran.

Thebaghdadpost.com

Iraq electricity minister: US will continue exemptions for Iranian electricity imports

In an exclusive interview with Al-Monitor, Iraqi Minister of Electricity Luay al-Khatteeb talked about the situation of Iraq’s electricity sector amid tense US-Iran relations. He discussed the waiver timeline that Washington granted Baghdad to keep buying Iranian gas and mentioned his fear that some parties are politicizing the electricity sector in Iraq.

Iraqi Prime Minister Adel Abdul Mahdi’s government voted Oct. 25, 2018 to appoint Khatteeb as minister of electricity. Before he was tasked with the ministry, Khatteeb was director of the Iraq Energy Institute and worked as an engineer for several international companies such as British Gas, the Dutch Shell Company and the Indonesian National Oil Company.

Al-Monitor: Does Iraq have any concerns in the electricity sector due to US-Iranian tensions?

Khatteeb: We have taken our precautions, specifically in summer, by putting more optimistic productivity plans, compared to 2018. We increased production for May by around 3,500 megawatts compared to electricity production levels in 2018.

The challenges of the political conflict in the region exist, but through our understandings with the United States, we explained that Iraq should not be involved in regional or international disputes. Our need to import electricity temporarily from Iran might not exceed six months or a bit more, but our need for gas will last for about two to three years until the situation of Iraqi gas improves.

Al-Monitor: What are your concerns and plans if Washington refuses to give Baghdad new exemptions for gas imports from Tehran?

Khatteeb: We have electricity and gas exemptions from the United States. They know and understand our gas needs. Neither the international community nor the United States would benefit from putting spokes in the wheels for Iraq. We have our priorities, and we have been strong US allies in the war against terrorism. We were victorious but paid the price humanitarianly and economically. The exemptions are divided into time periods and are extendable. I believe they will continue because Iraq’s situation is different from that of our countries, and we do not have an alternative.

Al-Monitor: Is there another country you can import from? Some information indicated that Iran is selling you gas at high prices.

Khatteeb: We are open to finding the best deals. We do not want to be a party to the conflict, and we do not want to favor one side over another. We have strategic relations with all neighboring countries and the United States. We do not want to incite any country against the other. We told neighboring countries that we are open to electricity and gas deals. Some offers were put forward, but they were nowhere near Iranian gas.

When we talk about offers, we mean gas and electricity together. We currently import 1,100 megawatts of electricity from Iran, and we import gas for producing 2,800 megawatts of electricity. The whole amount reaches up to 4,000 megawatts. We have not found better offers in terms of quantity, speed and price. Besides, we would need infrastructure to connect us to other countries. Our only option currently is Iran.

Al-Monitor: Do you think Iraqis will take to the streets in summer because of electricity?

Khatteeb: Our past steps have created more energy and have placed us in a better position. Although the situation is not ideal, it is better. To reach radical solutions, major agreements are needed. We hope people will understand that we signed agreements with Siemens and that our contracts with General Electric are ongoing. The radical changes will happen in 2020 because the production capacity and major transportation projects will become operational in the last quarter of 2019, reaching mid-2020.

Al-Monitor: Were you forced into a partnership with both Siemens and General Electric? And are the companies’ contracts part of the international distribution of shares in Iraq?

Khatteeb: The previous administration of the Ministry of Electricity signed two maps to boost the electricity sector, the first being the Siemens roadmap and the second the General Electric roadmap. Both are not binding. We reviewed and outlined the work of these companies, and we prepared an Iraqi roadmap rather than a company roadmap.

The agreement with Siemens was worth 1.7 million euros. With General Electric, we have not signed anything yet regarding the roadmap. But there were development and installation contracts worth 1.5 million euros signed in the past six months. Regarding the roadmap, there has been nothing so far. The timeline of the map is four years and it began May 1. It will be divided over three phases. The competition between Siemens and General Electric should be positive and healthy, and it should serve the reconstruction of Iraq — specifically the power issue.

Al-Monitor: Are there any indications to your claim that the electricity sector is politicized?

Khatteeb: Everything in Iraq is politicized. My hope is that it will no longer be so. At the Ministry of Electricity, we advise all parties interested in Iraqi affairs not to use an imposing tone. We are an independent state, and we have our entity. Iraq is stronger than it was in 2003. Such demands can be asked of a weak state, but not Iraq. Some embassies want to promote their companies; we welcome this idea, but we refuse pressure.

Al-Monitor: What is the situation of Iranian companies that have contracts with Iraq amid US sanctions?

Khatteeb: Everything is working normally. Those companies are limited in number; we pay them in Iraqi dinars with simple contracting operations.

Al-Monitor: Will you announce the privatization of electricity, or did this experience fail?

Khatteeb: Relying on the role of the government in everything has dangerous repercussions and would lead to failure. We are no longer a socialist country. We rely on the market economy and on creating job opportunities. We want to ensure a promising and attractive environment for hard currency to create a strong local private sector. We are examining the possibility of involving the private sector in investing in production and distribution but under strict international conditions that would aid the state treasury with revenue.

Al-Monitor: Did Saudi Arabia propose to sell electricity and gas for a lower cost than Iran?

Khatteeb: Saudi Arabia has shown cooperation with Iraq. But we did not receive any offers related to buying electricity. The agreement with Saudi Arabia is related to Saudi companies investing in the energy sector in Iraq. There is positive cooperation with Saudi Arabia, and in the next phase, Gulf companies will invest in the Iraqi energy sector.

Al-Monitor: Are you worried about being a victim if protests against the electricity situation are staged and you are dismissed?

Khatteeb: Protesting is a legitimate, constitutional right, and our responsibility in government is shared. Everyone must commit to their duties. The citizen has a right to protest, but he must pay the bill.

Al-Monitor: You don’t have a supportive political bloc. Will you be sacrificed?

Khatteeb: The people are my parliamentary bloc, and I am doing what I should. The decision is up to the parliament. I was questioned by the parliament four times in six months. I am not clinging to the position. I am here to do my job, and I will leave when my term is done.

Al-monitor.com

THE IMF WARNS OF A MAJOR THREAT TO THE US ECONOMY

The International Monetary Fund (IMF) has warned the United States against further escalation of trade disputes and the sudden slowdown in financial markets, which pose serious risks to the US economy, especially in the context of the trade war with China.IMF officials said Thursday that the US financial system is increasingly vulnerable and economic conditions may falter as investors are more concerned about US trade disputes.
“Trade disputes are the risk factor that we feel is the biggest concern for the US economy,” said Nigel Chuck, head of the IMF mission.

In his report, the IMF criticized attempts by the administration of US President Donald Trump to reform global trade relations by increasing tariffs.

The report stressed that it is particularly important to resolve the trade dispute with China as a threat to the global economy.

“Import duties have increased, and other steps taken by the US administration undermine the global trading system,” the report said.

“The regulators of the US financial sector have not done enough to address growing weaknesses in the financial system,” he warned, warning of potential damage to the US economy.

The trade war between the United States and China escalated last month after trade negotiations reached a standstill, with Washington accusing Beijing of backtracking on an imminent deal that the two countries’ officials were close to completing.

Trump also raised tariffs from 10 percent to 25 percent on Chinese goods worth 200 billion dollars, bringing China an increase in tariffs on US goods worth 50 billion dollars. The US administration also included the Chinese telecom giant Huawei on its black list.

Alforatnews.com

Newspaper: Abadi and wise (Hakim) decision to go to the opposition

Information / Baghdad .. According to the newspaper “the new Arab”, Wednesday, that the victory coalition headed by Haider Abadi and the stream of wisdom headed by Mr. Ammar Hakim ordered them to go to the opposition, stressing the existence of an undeclared decision in this regard.

The newspaper quoted in a report seen by (information), a parliamentary source as saying that “the trend towards the opposition has become a matter of time no more,” explaining that “some of the blocks of reform resolved in this regard, including the stream of wisdom (led by Hakim), and alliance victory (headed by Former Prime Minister Haider al-Abadi). ”

The source added that “there is an undeclared decision to go to the opposition, and the deadline given to Abdul Mahdi, is only to give the argument, not more,” indicating that “these blocks will wait for the end of the deadline, and then will announce its move.”

He pointed out that “there is an undeclared decision to go to the opposition, and the deadline given to Abdul Mahdi, is only to give the argument to him no more. “There is no chance for Abdul Mahdi, the situation is crisis and can not resolve any of the controversial issues, nor can face corruption and corrupt within the deadline.” Ending / 25

Faceiraq.org

Saleh and Abdul-Mahdi agree on the need to stay away from politics and solve the problems of Kirkuk and Diyala

President Barham Salih discussed with Prime Minister Adel Abdul Mahdi the results of the two Arab summit summits and the OIC summit held recently in Mecca.

The two sides discussed the international and regional situations, the role of Iraq based on keeping away from the policy of the axis, and continuing to abide by its clear policy, supreme national interests, and its independent national decision, the statement said.

During the meeting, they discussed developments in Kirkuk and Diyala, efforts to solve the problems facing the two provinces, to confront terrorism and to enhance security and social peace.

Radionawa.com