Iran to export $5b of gas, electricity to Iraq by March 2020

July 16, 2019

TEHRAN – The value of Iran’s gas and electricity exports to Iraq are expected to reach $5 billion by the end of the current Iranian calendar year (March 21, 2020), Meh news agency quoted an official with the Iran-Iraq Joint Chamber of Commerce as saying.

According to the Secretary General of Iran-Iraq Joint Chamber Seyed Hamid Hosseini, if Iraq agrees it is possible for Iran to barter necessary goods in return for the gas and electricity revenues, however Iraq’s central bank should cooperate in this regard.

“Despite the agreement reached between the governor of the Central Bank of Iran (CBI) and the Iraqi foreign minister, the Iraqi Central Bank has not yet taken necessary measures,” Hosseini added.

The official further mentioned Iran’s technical and engineering projects in Iraq, saying that development projects in the country which were halted due to terrorist activities and financial issues, are also resumed.

“In the wake of expert-level sessions held between Iraqi Housing Ministry and Iran Small Industries and Industrial Parks Organization (ISIPO), it is stipulated that Iranian projects halted in Iraq will resume," he said.

Accordingly, some of these projects have been re-launched and other projects, mainly technical and engineering projects, will start activity soon, Hosseini highlighted.

Meanwhile, new projects will be commissioned in neighboring Iraq by the year-end.
Elsewhere in his remarks, Hosseini mentioned Iran-Iraq Joint trade committee meeting which is due to be held on July 21-22 in Iraqi capital Baghdad in the presence of relevant officials and organizations.

In early May, officials from the two countries had held a meeting in Tehran to discuss establishing an Iran-Iraq trade committee.

According to Iran’s Trade Promotion Organization (TPO), in the meeting, the two sides discussed several issues including joint investment and establishment of industrial zones, facilitating the transit of goods, facilitating business travels, organizing pilgrimage and health tourism, as well as solving the existing problems regarding mutual trade.

Underlining such discussions and agreements, Hosseini noted that the two sides are going to review previous talks and agreements in the upcoming event.

Iran’s exports to Iraq have increased by 37 in the last Iranian calendar year (ended on March 20) and the two neighbors have it on agenda to boost their mutual trade to $20 billion by 2021.

EF/MA

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