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Iran announces the establishment of a company in Iraq to settle debts worth 5 billion dollars

The Secretary-General of the Iran-Iraq Joint Chamber of Commerce, Hamid Hosseini, announced the establishment of a company in Iraq to settle $ 5 billion in debt to Iran, but not paying cash, because of the sanctions, but in exchange for the purchase of goods and commodities in Iraq.

Hosseini said in an interview with the Iranian “Ferraro” website, Friday, that this amount is Iran’s request with the Iraqi Bank of TBI, adding that according to the agreement between the two countries, Iran will provide the company with a list of goods and materials that it needs to be purchased and sent to Iran.

What kind of debt?

The Iranian official did not clarify the quality of the debt owed by Iraq, despite the temporary US exemption for Iraq that includes the import of electricity from Iran only.

However, Iraq is unable to pay for the gas and electricity imported from Iran to Tehran because of the sanctions, and for this reason, Iraqi banks find it difficult to transfer money to Iran.

Abdel Nasser Hemti, the governor of the Central Bank of Iran, had announced after his visit to Iraq on June 19 that Baghdad had agreed to pay its debts related to importing gas and electricity to Iran through the export of food and medicine.

Earlier, Iranian officials announced that Iraq’s debts to Iran for electricity and gas exports amount to $ 2 billion, and it is not known what debts of the three billionaires expected.

Unclear relationships

The Iranian government says that the total trade between Iran and Iraq amounts to 12 billion dollars annually, but given that Iran has stopped publishing details of its foreign trade since March 2019 due to the sanctions, the details of the current trade between Iran and Iraq are not clear.

Iranian President Hassan Rouhani announced during the visit of Iraqi Prime Minister Mustafa Al-Kazemi to Tehran last Tuesday that trade between the two countries should reach 20 billion dollars annually.

Tehran is trying to use the Iraqi financial channel to meet its foreign purchases and circumvent US sanctions.

And the Iranian Vice President, Ishaq Jahangiri, has admitted that Tehran was unable to transfer any money due to the financial and banking sanctions, saying that “the United States does not allow us to transfer one dollar even from the Iranian money that is located in various countries of the world.”


Washington has tended to tighten the screws on Tehran, as more fictitious companies, fraud and entities that it has planted in the region over the years, especially in Iraq, are exposed.

Last April, the US Treasury imposed sanctions on 20 Iraqi and Iranian entities providing support for the Quds Force forces, as well as transferring aid to pro-Iranian Iraqi militias such as the Iraqi Hezbollah Brigades and Asaib Ahl al-Haq. Source