US prevents Iraq from importing Turkmen gas via Iran despite power shortage
The United States has thwarted a deal aimed at easing Iraq’s chronic power shortage through its importation of gas from Turkmenistan via neighboring Iran, amid sanctions on the Islamic Republic.
Citing four Iraqi officials and seven official documents, Reuters said in a report on Friday that Iraq failed to secure US approval to import Turkmen gas via Iran, which it needed to avoid risking a violation of Washington’s sanctions on Tehran.
Iraq sought to import 5.025 billion cubic meters (bcm) of Turkmen gas a year, facilitated via Iran’s state-owned National Iranian Gas Company (NIGC), according to a draft contract of the swap deal, which was first proposed in 2023.
The document indicated that Iran would receive no money, but would obtain gas for its own requirements, amounting to no more than 23 percent of the overall daily volume supplied by Turkmenistan.
While Baghdad sought for months to obtain the US approval, even offering to allow a third-party international monitor to oversee the deal’s compliance with Washington’s sanctions, US objections ultimately scuppered the deal, as Washington is imposing a “maximum pressure” campaign against Iran.
“Proceeding (with the Turkmen deal) could trigger sanctions on Iraqi banks and financial institutions, so the contract is currently suspended,” Adel Karim, adviser to Iraq’s prime minister for electricity affairs, told Reuters.
The US disruption of the deal came despite claims that Washington was working with Iraq on its energy needs.
Iraq has been struggling with power shortages since the 2003 US-led invasion, with many Iraqis relying on expensive private generators, which have caused economic hardship and sparked social unrest.
Hussain Saad, a 43-year-old owner of a butcher shop in Baghdad, said he is having difficulty safeguarding his livelihood and preventing his meat from spoiling in the intense heat.
“This isn’t just my suffering — it’s the suffering of the entire Iraqi people,” he said.
In March, the administration of US President Donald Trump also refused to renew a sanctions waiver that previously allowed Iraq to pay for electricity imported from Iran, putting the country's ability to meet its domestic energy needs at risk.
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