Iraq to request exemptions from US sanctions on Iran

An Iraqi delegation is to travel to Washington to ask for exemptions from US sanctions on Iran in order to save its economy - closely tied to that of its neighbour - from collapse, Iraqi government and central bank officials said.

US President Donald Trump has issued a stark threat to countries that do not respect the trade sanctions, which he reimposed earlier this year after pulling out of the landmark 2015 deal that allowed Iran to trade on the condition it would curb its nuclear programme.

The sanctions - which have already crippled Tehran's economy - pose many difficulties for Baghdad. The neighbouring countries are important trade allies, however Iraq is equally still hugely reliant on the US which proves crucial security support in the fractious country.

Iraq's Prime Minister Haider al-Abadi has also been a staunch ally of the US during his four-year tenure, originally agreeing to respect all the sanctions. Asking to be exempt from them would signify a marked change in his policy, especially at present when the US and Iran are locked in a bitter spat over Trump's withdrawal from the agreement.

According to Reuters, an Iraqi delegation is to travel to the US to request special dispensation from the sanctions, however it was not mentioned when the trip would occur. Each Iraqi ministry is to compile a list of essential imports from Iran and request exemptions for them specifically.

"The government plans to ask Washington for a waiver. It's going to happen soon," a central bank official told Reuters.

However the US seems unwilling to make any exemptions on its ruthless programme, warning that those who do business in Iran will be banned from trading in the US.

"We have given the same message to all countries around the world that the President has said, the United States is fully committed to enforcing all of our sanctions," a US State Department official said.

"Iraq is a friend and important partner of the US and we are we are committed to ensuring Iraqi stability and prosperity," they added.

Already suffering from shortages and a dwindling economic situation that has sparked weeks of mass protests, the sanctions could further cause financial damage on top of a political crisis during a precarious period as Iraq negotiates a new government.

Iraq relies heavily on imports from Iran, which include food, agricultural products, home appliances, air conditioners and spare car parts, totalling around 15 percent of its total incoming trade.

Furthermore, energy contracts between the two neighbours totalled $12 billion worth of trade last year.

The majority of trade sanctions against Iran are due to come into force in the coming November.

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