The Foreign Minister of Iraq, Fuad Hussein, announced that he will be discussing with the United States on how to pay debts owed to Russian oil companies despite the imposed sanctions. This week, Hussein is set to fly to the United States to further discuss recent regulations put in place by the New York Federal Reserve on international dollar transactions by commercial Iraqi banks and their impact on the country’s economy.
Iraq is a country that has a long-standing relationship with Russia, particularly in the oil industry. Russian investments in Iraq are estimated to be worth over $10 billion, with companies such as Lukoil and Gazprom actively conducting business in the country. This is why the sanctions imposed on Russia by the West has become a cause of concern for Iraq.
The goal of the discussions with the United States is to protect Iraqi banks and its central bank from sanctions that may be imposed if they continue to transact with Russian companies that are under international sanctions. The Iraqi Foreign Minister stated that he would like to find a solution that will allow Iraq to continue its cooperation with Russian companies without having to face sanctions.
The current state of the situation is a reflection of the global impact of the invasion of Ukraine by Russia, which has led the West to target Moscow’s energy revenues through sanctions. The sanctions imposed on Russia also restrict sales to third countries, which has made it difficult for countries like Iraq to continue their transactions with Russian companies.
Iraq is calling for peaceful solutions and encouraging dialogue between Russia and Ukraine to end the conflict. The country is also working with the United States to find a solution that will allow it to continue its cooperation with Russian companies while still being in compliance with international sanctions. The outcome of this week’s discussion will be important in determining the future of Iraq’s relationship with Russia and its impact on the country’s economy.