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Washington extends Iraq's exemption from US sanctions on Iran for another 90 days

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42 minutes ago, navira said:

Really nice find bro...cheers 

To the dinar cheers

Edited by 6ly410
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Washington: We will not grant other exemptions from sanctions on the Iranian oil sector

Washington: We will not grant other exemptions from sanctions on the Iranian oil sector
 



 Twilight News    
 2 hours ago

US special envoy to Iran, Brian Hawke, said on Saturday that Washington was not considering any further exemptions for Iran's oil sector after US sanctions were re-imposed on Tehran.

Hawk told a news conference in the UAE capital Abu Dhabi that the reason for the exemptions granted earlier was to prevent high oil prices, and Hawk declined to disclose what Washington intends to do when the current exemptions expire at the end of May, Reuters reported.

US sanctions have been granted to eight major oil buyers, including China, India, Japan and South Korea, after they re-imposed sanctions on the oil sector in November.

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Designing Win-Win Economic Policies in Washington and Baghdad

Katherine BauerMichael Knightsand Bilal Wahab

 

To pressure Iran without cornering Iraq, U.S. officials should set a program of activities with achievable timeframes, supported by public diplomacy.

On January 3, Iraqi foreign minister Muhammad Ali al-Hakim expressed annoyance at U.S. sanctions on Iran, stating that “the sanctions, the siege, or what is called the embargo, these are unilateral, not international. We are not obliged [to follow] them.” The comments came two weeks after the United States issued a 90-day waiver to allow Iraq to continue importing Iranian natural gas and electricity. This renewal followed the prior 45-day waiver allocated alongside the November 4 reimposition of U.S. sanctions on Iran.

Despite defiant statements, Iraq has signaled its intention to comply with U.S. sanctions and move toward energy independence, while asking Washington for some flexibility with its electricity shortfall problems (especially during summer months). In the next 90 days, the two governments need to agree on a practical program to build confidence and allow for longer waiver periods, akin to the 180-day waivers available to most purchasers of Iranian energy supplies.

IRAQI COMPLIANCE WITH U.S. SANCTIONS

Energy transfers between Iran and Iraq are a potential source of much-needed hard currency for Iran’s security agencies. For example, Washington sanctioned a major Iraqi bank and its well-connected chairman last May for their role in moving millions of dollars from the Islamic Revolutionary Guard Corps to Hezbollah. Iran has also historically used Iraq as a source of U.S. dollars, which is prohibited under sanctions. Washington therefore has three ongoing concerns relating to Iraqi trade with Iran:

Payments for Iranian electricity. Iraq imports between 500 megawatts of electricity from Iran in winter and 1,200 MW in summer, costing approximately $1.2 billion per year. Under the U.S. waiver conditions, Iraq must pay for this in dinars, not U.S. dollars.

Purchases of Iranian gas. The BP 2018 Statistical Review of World Energy reported that Iran’s gas exports to Iraq reached 154 million cubic feet per day (or 13% of the current Iraqi gas supply), allowing Baghdad to generate at least another 1,000 MW of electricity, with plans to increase this to 4,000 MW. Under the waiver, Iraq is required to hold Iran’s revenue from this gas in an escrow account that can only be used to finance bilateral trade.

Other Iranian efforts to secure U.S. dollars. In late 2011, demand for U.S. dollars at currency auctions conducted by the Central Bank of Iraq more than doubled, corresponding to rapid depreciation of the Iranian rial as multilateral sanctions built pressure on Iran’s economy. Although the bank began taking steps in 2015 to ban suspicious buyers in response to U.S. fears that the Islamic State was exploiting auctions, concerns remain that Iran could access the auctions through poorly regulated exchange houses and front companies. Dispensing with the auctions is a distant possibility, but the bank has managed to reduce their profitability by narrowing the gulf between official and actual exchange rates from 6.25% in 2017 to 2% by mid-2018.

FOCUS ON ENERGY INDEPENDENCE

The United States is encouraging Baghdad to reduce its dependence on Iranian gas and electricity by harnessing its own copious and underexploited capacity. Iraq currently wastes around $2.5 billion worth of gas per year via flaring, or 1.55 billion cubic feet per day (ten times the amount imported from Iran). U.S. officials have cautioned Iraq that future waiver extensions will require it to provide a clear plan for achieving energy independence and show tangible steps toward implementation.

Washington would also prefer that Iraq diversify its energy purchases. In July 2018, Saudi Arabia announced its willingness to cooperate on a plan that would supply electricity to Iraq for $21 per megawatt-hour, one-fourth the cost of Iranian imports. Jordan might also be willing to export electricity there, and Turkey has contemplated increasing its cross-border supply to the Mosul area. Moreover, during a recent visit to Iraq, U.S. energy secretary Rick Perry mentioned the potential for temporary imports of liquefied natural gas from the United States and other vendors.

These options could reduce the price of exorbitantly expensive imports from Iran. Iraq buys Iranian gas for $11.23 per thousand cubic feet—compared to the $5.42 that Germany has paid to acquire more-distant gas from Russia, the $6.49 that Kuwait paid for U.S. LNG, or even the $7.82 that Japan paid for LNG, according to BP.

POLICY RECOMMENDATIONS 

In the next 90 days, the U.S. government first needs to hold an interagency policy discussion to ensure that the State Department, National Security Council, Treasury Department, intelligence community, and Energy Department are on the same page. Energy experts within these agencies need to clearly lay out which advances are feasible for Iraq in a 90-day timeframe. Likewise, financial and sanctions experts should assess the risks of diverting Iraqi payments to Iran and, relatedly, the capacity of Iraqi financial institutions and their regulators to comply with the waiver conditions. Furthermore, the next waiver extension should be issued with a less arbitrary duration, along with a set of achievable and measurable milestones. These might include:

Iraqi white paper on energy independence. It is reasonable to expect Iraq to draft this paper and get it approved by the cabinet energy committee within the next 90 days. The report should provide a prioritized and sequenced roadmap for increasing gas capture and strengthening the electricity sector by summer 2019 (e.g., the latter effort could include gradually collecting electricity dues with the World Bank’s help and reducing power leakage by refurbishing distribution networks).

Memoranda of understanding. Expecting Iraq to sign major deals with energy firms during the first 45-day waiver period may have been unrealistic. Such deals are typically very large in value and require approval from the Iraqi cabinet, which was only partially formed on October 25—a week before the United States began the 45-day clock. It is more realistic to expect Iraq to sign memoranda of understanding and heads of agreement with international companies in the next 90 days. Yet Washington should appreciate that Baghdad has received competing proposals for gas capture and electricity sector management, and thus will likely try to combine them and force providers to work together—a slow process under the best of circumstances. At the same time, the United States is right to expect progress by this summer, when drought and heat may combine to create a new and destabilizing electricity crisis. This suggests the need to set realistic timeframes and prioritize projects that can show immediate effects.

Energy compact among Iraq’s neighbors. The United States, Germany, and other parties should work to bring Saudi Arabia, Kuwait, and Jordan together on the sidelines of the January 9 Middle East Strategic Alliance meeting in Oman, with the aim of discussing electricity exports to Iraq.

Monitoring U.S. dollars. U.S. and Iraqi authorities should continue their robust exchange of information related to troubling trends in U.S. dollar demand within Iraq, suspicious cross-border wire transfers, and dubious Iraqi exchange houses. As Iraq and Iran seek to expand bilateral trade from $12 billion to $20 billion, Washington will likely keep a close eye on such activity generally. It also has considerable insight into dollar-denominated transactions that draw on Iraqi reserves held at the U.S. Federal Reserve.

Expose bad actors. The Central Bank of Iraq should identify and ban exchange houses and front companies attempting to access U.S. dollars on Iran’s behalf via Iraqi currency auctions. The bank has blacklisted more than 200 exchange houses suspected of engaging in illicit financial activities since 2015, some jointly designated with the United States.

Boost banking sector to counter sanctions evasion. Iraq’s cash-based economy makes it a challenge to stifle Iranian sanctions evasion through monitoring of dollar demand and wire transfers alone. To reform its financial sector, Iraq needs prodding and technical assistance in switching public payrolls from cash handouts to bank debits. Beyond efforts to bring additional trade financing activity into the formal sector, U.S. and Iraqi authorities should reach out to banks, financial firms, and commercial actors in key sectors, raising awareness about the legal parameters of U.S. sanctions and the potential consequences of doing business with certain Iranian entities. Washington should also offer technical assistance to increase regulators’ capacity to implement counter-illicit finance regulations.

Although the United States is pursuing its own interests through these measures, each aspect of its Iran sanctions policy is good for Iraqis. Their leaders should want to use wasted Iraqi gas instead of buying Iran’s expensive imports. They should want to have a more diverse range of electricity providers to secure better value, reliability, and energy independence for the people. And they should want to improve financial controls and promote transparency in the economy, safeguarding its integrity and protecting Iraq’s vital connection to the international financial system. The U.S. embassy in Baghdad should use all available channels to ensure that the Iraqi people understand how sanctions can facilitate these benefits.

 

https://www.washingtoninstitute.org/policy-analysis/view/designing-win-win-economic-policies-in-washington-and-baghdad

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Man 1 to 1 or even .50 cents per dinar , Iraq would be sitting super fine in the currency exchange for commodity trades !

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1 hour ago, jeepguy said:

Man 1 to 1 or even .50 cents per dinar , Iraq would be sitting super fine in the currency exchange for commodity trades !

Like that thought process. :twothumbs:

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Liking the news lately. Iraq needs to complete their government formation!!!!!!

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9 hours ago, Pitcher said:

Liking the news lately. Iraq needs to complete their government formation!!!!!!

Same here, even though these guys talk things to death they are talking about it and just that is very positive for everyone. 

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11 hours ago, Pitcher said:

Under the U.S. waiver conditions, Iraq must pay for this in dinars, not U.S. dollars.

 

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11 hours ago, Pitcher said:

Iran has also historically used Iraq as a source of U.S. dollars, which is prohibited under sanctions

 

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New EU sanctions positive news

The Baghdad Post

The West is in crisis and this has had a profound effect on the Middle East. The various aspects of the crisis are often bewildering and the trajectory is hard to divine. Populism, of the like not seen for generations is causing the countries that make up the West to look inwards. Yet this vacillation and circumspection is a friend to no one in the wider world. 


The EU looks certain to be shaken by populism. The institution is facing the seismic fracture of Brexit, plus the new authoritarianism of the Visegrad group. France is beset by civil strife. The forthcoming European elections may well redraw the political landscape with right wing and populist parties taking a large share of seats. 


The western military alliance that has underpinned the world’s rules based order since the end of the cold war, is strained over key issues such US insistence that European countries should pay more for their own defense.  For the first time the relevance of NATO mission is being questioned. France and Britain (and to a certain extent Poland) are the only European countries that have maintained credible armed forces. Britain is the only European power with strategic expeditionary capability.


America’s introspection has taken a protectionist turn, largely aimed at China but it also has theEU in its sights. 


All of this disarray and lack of western coherence has resulted in unprecedented bickering between countries that have long stood for democracy, liberty and cooperation. As far as the Middle East is concerned there has been a weariness and cautiousness on the part of the Europeans to become embroiled in conflicts.Britain and France remain active across Iraq and Syria but only with their air forces and limited special forces ground troops.  President Obama’s decision to withdraw US forces from Iraq and Afghanistan was a rash. 


The moral and security vacuum has cost the citizens of Iraq and Syria dearly. Of all the countries that have prospered from this Iran is the key player. Iran has pursued a ruthless expansionism. Its vanguard is multi-faceted – proxy militias, terror, regular forces and cyber warfare. A few months ago the much vaunted Iranian goal to push a corridor from Tehran to the Mediterranean looked a distinct reality.


However, there are promising signs that Iran has overplayed its hand on all fronts. President Trump has vowed that US forces will not abandon Syria until Iran’s forces are expelled from the country. This week Pompeo declared that there will be no US reconstruction funds for Syria until Iran has quit the country. Perhaps more significant is the fact that the EU has belatedly woken up to the threat of Iran’s terror operations within its territory. The constituent EU countries are all putting hard hitting sanctions into place. Moreover, these are ‘smart’ sanctions which will target Iran’s financial institutions and its intelligence services. All the signs are that the combined force of US and EU sanctions may cause fractures in Iran’s ability to wage war and to operate in any credible fashion as a viable state. 


Where does this leave Iraq, a country that Iran has for so long sought to plunder, occupy and bend to its will? The US led sanctions againstIran will have a crucial impact in Iraq. With the diminution of Iran and eventual regime change Iraq will be able to reform itself and, free from Iranian interference, put itself back on the course to sovereign, federal, non-sectarian stability. Western countries will happily increase investment in Iraq if companies can be sure of this stability and lack of corruption. The EU’s new Iran sanctions are perhaps the main sign of positivity at the beginning of 2019. Firstly, the sanctions show that the West can rise above its divisions and antagonisms. Secondly, they show that concerted action is the only way to destroy Iran’s ambitions for regional domination.

 

https://www.thebaghdadpost.com/en/Story/35132/New-EU-sanctions-positive-news

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I suspect that like 1968....2019 will be a game changer.....

 

The Yellow Vest movement in France today is being watched world wide as a method for change......how long till the people of Iraq march for the change that is long over due.....

 

It is interesting that in 68 the unrest in France ended moving them towards the socialism they are now protesting against......

 

Funny world......great post.....change is coming.....CL

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EU imposes sanctions on Iran
FelixMittermeier / Pixabay

EU imposes sanctions on Iran

January 10, 2019 11:44:25 am

The EU imposed sanctions against Iran’s Ministry of Intelligence and Security and two Iranian nationals on Tuesday.

“This means that funds and other financial assets of the Ministry and both individuals have been frozen,” explained the Dutch Minister of Foreign Affairs, Stef Blok, and the Dutch Minister of the Interior and Kingdom Relations, Kajsa Ollongren.

The Netherlands recommended that the EU impose sanctions after the General Intelligence and Security Service found a “strong indication” that Iran was behind the assassination of two Dutch nationals of Iranian origin on EU soil. According to the New York Times, “The two Iranian nationals killed in the Netherlands were tied to groups accused by Iran’s government of involvement in violence.”

Iranian Foreign Minister Mohammad Javad Zarif said of the sanctions, “Accusing Iran won’t absolve Europe of responsibility for harboring terrorists.”

Last June the Netherlands expelled two Iranian diplomats to give “a clear signal that the Netherlands regards Iran’s probable involvement in these serious cases as unacceptable.”

The EU also accused Iran of plotting attacks in France and Denmark.

Dutch officials said that Iran must cooperate by helping with ongoing criminal investigations and “removing the present concerns,” or risk further sanctions.

The officials were also clear that the EU does not want the sanctions to affect the Iran nuclear deal. “As long as Iran fulfils its obligations under the deal, the European Union will do the same.”

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Iran takes serious steps to design reactor fuel

Rouhani says Iran's ballistic missile program will continue
Iran is taking preliminary steps to designuranium fuel with a purity of 20 percent for reactors instead of having to copy foreign designs, Iran's nuclear chief said on Sunday.

Iran's 2015 nuclear accord with world powers caps the level to which it is able to enrich uranium to 3.67 percent purity, well below the 20 percent it was reaching before the deal, and the roughly 90 percent that is weapons-grade.

Iran is, however, allowed to produce nuclear fuel under strict conditions that need to be approved by a working group set up by the signatories to the deal. Those conditions include ensuring that the fuel cannot be converted to uranium hexafluoride, the feedstock for centrifuges that enrich uranium.

"We have made such progress in nuclear science and industry that, instead of reverse-engineering and the use of designs by others, we can design new fuel ourselves,” state broadcaster IRIB quoted Ali Akbar Salehi, head of the Atomic Energy Organization of Iran, as saying.

"Initial measures have been started for the design of modern 20 percent fuel and we're on the verge of (achieving) it. This product is different from the previous 20 percent fuel, and we can supply fuel to any reactor that is built like the Tehran reactor," Salehi said.

"The Tehran reactor has so far been working with old fuel, but modern fuel can improve efficiency,” he added.

Iranian officials have repeatedly criticized delays in setting up a new European Union payments mechanism for Iranian oil exports, which are hit by US sanctions. But Tehran has stopped short of moves that could jeopardize the accord.

US President Donald Trump pulled out of the accord last year, arguing that it was weak because it did not halt Iran’s development of ballistic missiles or support for armed proxies abroad, and he reimposed sanctions on Iran’s vital oil export sector.

But Europe sees the nuclear deal as an important element of international security.

The EU and other remaining parties - China and Russia - have tried with limited success to preserve trade incentives for Iran to respect the deal’s nuclear limits under US pressure.
 
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Thanks Obama and Kerry.

 

if President Trump was investigated for being a Russian agent then maybe John Kerry and Barry should be investigated for being an agent of the Muslim Brotherhood.

Maybe Just maybe Muellers Investigation is merely a feign to cover up the real activities of Barry’s Administration.  How many millions of that pallet of money to Iran went into our politicians pockets as a payoff?

 

That was some Nuclear Deal they brokered.  Iran never stopped their Nuclear actives and then got Billions to Fund those activities and create mayhem in the ME

 

Hate to say this but I see a War with Iran before we let them develope ICBM’s. 

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Pretty sure they're warming up the B-52's right about now . . . Cruise Missiles & MOABs' should be part of that package.  

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CL, 1968 was a crazy year. From my memory, let’s see how I do

 

 Bobby Kennedy assassinated

MLK is shot and killed

Russia invades Czechoslovakia

Tet Offensive

Democratic Convention mayhem 

Trickey **** Nixon elected

Black Power at Summer Olympics in Mexico ( ? )

Detroit Tigers win the WS and McClain wins 32 games or maybe 34

Green Bay Packer win Super Bowl Il

if I remember correctly “Hey Jude” by the Beetles was one of the top songs and

Laugh In and The Monkeys were two of the top TV shows

Top movies, 2001 A Space Odessey, Rosemary’s Baby, The Odd Couple and Planet of the Apes, the original, and my personal favorite. Barbarella

 

i had had to look up the movies

For fun what do you remember. 

 

 

 

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Things in Tehran are deteriorating by the day.  It is a city of 8.4 million and the area is 15 million. People are struggling to get food. The Sanctions are hitting them hard as hell

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Born in July 68' Pitcher ......http://rawabetcenter.com/archives/81598/amp........

Drawing up lucrative economic policies for both sides in Washington and Baghdad

%D8%B1%D8%B3%D9%85-%D8%B3%D9%8A%D8%A7%D8%B3%D8%A7%D8%AA-%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A%D8%A9-%D9%85%D8%B1%D8%A8%D8%AD%D8%A9-%D9%84%D9%84%D8%AC%D8%A7%D9%86%D8%A8%D9%8A%D9%86-%D9%81%D9%8A-%D9%88%D8%A7%D8%B4%D9%86%D8%B7%D9%86-%D9%88%D8%A8%D8%BA%D8%AF%D8%A7%D8%AF-300x190.jpg

On January 3, Iraqi Foreign Minister Mohamed Ali al-Hakim expressed his displeasure at US sanctions against Iran. "The sanctions, the blockade, the so-called embargo, are unilateral, not international," he said. We are not obliged to [follow them]. " The comments came two weeks after the United States issued a 90-day exemption to allow Iraq to continue importing natural gas and electric power from Iran. The renewal came after Iraq's 45-day exemption, which was allocated along with the re-imposition of US sanctions on Iran on November 4.

Despite these hawkish statements, Iraq has indicated its intention to comply with US sanctions and move towards energy independence while at the same time asking Washington for some flexibility in terms of its power shortages (especially during the summer months). In the next 90 days, the two governments will have to agree on a practical confidence-building program and allow longer-term exemptions, similar to the 180-day exemptions available to most Iranian energy buyers.

Iraq's compliance with US sanctions

Iran-Iraq energy transfers are a potential source of much-needed hard currency for Iranian security agencies. For example, last May, Washington imposed sanctions on one of Iraq's major banks and on its president, who has wide connections to their role in transferring millions of dollars from the IRGC to Hezbollah. Iran has historically used Iraq as a source of the US dollar, which is prohibited by sanctions. So Washington has three ongoing concerns about Iraqi trade with Iran:

Payments to Iranian electricity. Iraq imports between 500 megawatts of electricity from Iran in the winter and 1200 MW in the summer at a cost of about $ 1.2 billion per year. Among the terms of the US exemption, Iraq must pay for that in dinars, not US dollars.

Purchases of Iranian gas. The report of the "BP" of the "Global Energy Statistical Review" in 2018 that the export of gas from Iran to Iraq amounted to 154 million cubic feet per day (or 13% of the current Iraqi gas supply), allowing Baghdad to generate what At least 1,000 MW of electricity, with plans to increase it to 4000 MW. Under the exemption, Iraq is required to keep Iran's revenues from this gas in a [conditional] guarantee account, which can only be used to finance bilateral trade.

Other Iranian efforts to secure US dollars. In late 2011, the demand for the US dollar in the currency auctions by the Central Bank of Iraq more than doubled, corresponding to the rapid depreciation of the Iranian riyal, as multilateral sanctions put pressure on the Iranian economy. Although the bank began taking steps in 2015 to ban suspicious buyers in response to US concerns that the Islamic state was exploiting auctions, concerns remained about Iran's access to auctions due to poor regulation at exchange offices and front companies [Mirror Companies]. Eliminating auctions is a remote possibility, but the bank has managed to reduce its profitability by narrowing the gap between official and actual exchange rates from 6.25 percent in 2017 to 2 percent by mid-2018.

Focus on energy independence

The United States encourages Baghdad to reduce its dependence on Iranian gas and electricity by harnessing its abundant and untapped potential. Iraq currently wastes about $ 2.5 billion of natural gas a year as a result of its burning, or 1.55 billion cubic feet per day (ten times the amount imported from Iran). US officials have warned Iraq that the next extension of the exemption deadline will require him to present a clear plan aimed at achieving energy independence and showing concrete steps towards implementation.

Washington prefers Iraq to diversify its energy sources. In July 2018, Saudi Arabia announced its willingness to cooperate in a plan to supply Iraq with electricity at $ 21 per megawatt-hour, a quarter of the cost of Iranian imports. Jordan may also be ready to export electricity to Iraq, and Turkey has thought of increasing its supplies across the border to Mosul. In addition, during the recent visit by US Energy Secretary Rick Perry to Iraq, he mentioned the potential import of LNG from the United States and other vendors.

These options have reduced the price of expensive imports from Iran. According to BP, Iraq buys Iranian gas at $ 11.23 per thousand cubic feet, compared to $ 5.42 paid by Germany for gas far from Russia, or $ 6.49 paid by Kuwait for liquefied natural gas, or $ 7.82 by Japan Compared to LNG.

Policy recommendations

In the next 90 days, the US government first needs an inter-agency political debate to ensure that the National Security Council, the State Department, the Treasury, the intelligence community, and energy management agree on the same goal. Energy experts in these agencies also need to make clear what possible proposals for Iraq are in a 90-day time frame. Similarly, money and sanctions experts should assess the risk of transferring Iraqi payments to Iran and the related ability of Iraqi financial institutions and their monitors to comply with the terms of the exemption. In addition, the next extension of the exemption period should be issued with a less arbitrary duration, together with a set of interim indicators that can be implemented and measurable. These may include:

White Paper [Iraqi Official Report] on Energy Independence. It is logical to expect Iraq to draft this book and ratify it by the Energy Committee of the Council of Ministers within the next 90 days. The report should provide a prioritized and sequential road map to increase gas retention and strengthen the electricity sector by the summer of 2019 (for example, the last effort could include a gradual collection of electricity entitlements with the assistance of the World Bank and reducing energy leakage by renewing distribution networks).

Memoranda of Understanding. The prospect of Iraq signing large deals with energy companies during the first 45-day grace period may have been unrealistic. Such deals are usually of great value and require the approval of the Iraqi Council of Ministers, which was only partially formed on 25 October - a week before the United States began its 45-day deadline. More realistic is the expectation that Iraq will sign memorandums of understanding and key elements of agreements with international companies in the next 90 days. However, Washington must estimate that Baghdad has received a number of competing proposals for gas capture and management of the electricity sector, and therefore will probably try to combine it and force service providers to work together - a slow process even in the best of circumstances. At the same time, the United States is right to expect progress this summer, when combined drought and heat lead to a new and destabilizing electricity crisis.

Energy Charter between Iraq's Neighboring Countries. The United States, Germany and other parties should work to bring Saudi Arabia, Kuwait and Jordan together on the sidelines of the Middle East Strategic Alliance meeting in Amman on January 9 to discuss electricity exports to Iraq.

Monitoring US dollars. The US and Iraqi authorities should continue to share strongly information about the worrisome trends in demand for the US dollar within Iraq, dubious cross-border wire transfers and questionable Iraqi exchange offices. While Iraq and Iran seek to expand bilateral trade from $ 12 billion to $ 20 billion, Washington is likely to closely monitor such activity in general. It also has an in-depth understanding of dollar-based transactions that rely on Iraqi reserves in the US Federal Reserve.

Exposing bad actors. The CBI should identify and prohibit exchange offices and front companies seeking access to the US dollar on behalf of Iran through Iraqi currency auctions. In this regard, the Bank has blacklisted more than 200 exchange offices suspected of involvement in illegal financial activities since 2015, some of which have been jointly listed with the United States.

Strengthening the banking sector to face evasion of sanctions. The cash-based economy in Iraq makes it difficult to limit Iran's evasion of sanctions by monitoring demand for the dollar and wire transfers alone. In order to reform Iraq's financial sector, the country needs dynamic support [and] technical assistance in converting public salaries from cash payments to bank debt. In addition to efforts to bring additional trade finance to the formal sector, US and Iraqi authorities should communicate with banks, financial companies and business actors in key sectors, raise awareness about the legal standards of US sanctions and possible consequences of doing business with some Iranian entities. Washington should also provide technical assistance to increase the ability of regulators to implement regulations combating illegal financing.

Although the United States seeks to achieve its own interests through these measures, every aspect of its policy on Iranian sanctions is useful to Iraqis. Their leaders should use wasted Iraqi gas instead of buying Iran's high-cost imports. They should also be willing to have a more diverse group of electricity suppliers so that people have greater value, reliability and autonomy in the energy sector. They should also be willing to improve financial controls, promote transparency in the economy, maintain its integrity and protect Iraq's vital link to the international financial system. The US Embassy in Baghdad should use all available channels to ensure that the Iraqi people understand how sanctions can facilitate these benefits.

Washington Institute

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1 minute ago, blueskyline said:

Iraq must pay for that in dinars, not US dollars.

 

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"It also has an in-depth understanding of dollar-based transactions that rely on Iraqi reserves in the US Federal Reserve."

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The main reason of the US sanctions on Iran is to asphyxiates their economy .

 

Iraq must pay for that in dinars not US dollars”I have been thinking about this statement, to try to understand the implications.

iraq has to pay $1.2 billion dollars annually to Iran for electricity 

$1.2 billion dollars x 1190 = 1.4 trillion IQD 

If iraq pay to Iran 1.4 trillion IQD and then RV, Iran will be getting a lot of money 

But if Iraq RV first and then pay. Iran will be getting $1.2 billion dollars at the new rate in dinars.

 

Go RV

Go $1:1

 

 

 

 

 

Edited by Laid Back
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Iranian official: We use "shadow markets" to circumvent the US embargo

 
Spread Monday , 14 January 2019
 

Iranian official: We use "shadow markets" to circumvent the US embargo

DUBAI, United Arab Emirates (CNN) - Iran's Deputy Minister of Oil for International and Commercial Affairs, Amir Hossein Zamani Nia, said today that the embargo imposed by the United States of America on the country makes it difficult to maintain oil markets for the time being. Fortunately, Iran has reached the shadow markets that can be used to export crude oil, but we do not want to give explanations about it, because the enemy is exploiting this information. "

 

And shadow markets or parallel markets, are a secret market, employing sophisticated investment strategies, operating without licenses or official records, and with no oversight.

"We are in an unequal economic war, but the country is not in bad shape, we will face the ban with all our energy and we will get out of Dhafrin," Zamani Nia told the 13th annual conference of the Union of Oil, Gas and Petrochemical Producers on Sunday evening.

 

He pointed out that there are many opportunities for export of oil products, which are not all used, in addition to the export opportunities available in neighboring countries such as Iraq, Turkey and Afghanistan, where exporters can use them.

He called on the Assistant Oil Minister to form a study committee for the export of oil derivatives; and to go to new markets in order to export these products.

On the European financial mechanism, Zamani Nia said, "We follow this issue with the Europeans every day. Although the Europeans are subject to American domination, no one in Europe has said that the mechanism is impossible to implement."

He pointed out that the use of this mechanism will help expand trade and financial relations with Europe and with other trading partners. "We hope that Europe will benefit from the opportunities available to it," he said.

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1 hour ago, yota691 said:

And shadow markets or parallel markets, are a secret market, employing sophisticated investment strategies, operating without licenses or official records, and with no oversight.

 

:lmao:   Ohhhh shadow/secrete markets Pssst keep telling yourselves that no one knows what/how you are selling oil.  🤣 

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9 hours ago, Laid Back said:

The main reason of the US sanctions on Iran is to asphyxiates their economy .

 

Iraq must pay for that in dinars not US dollars”I have been thinking about this statement, to try to understand the implications.

iraq has to pay $1.2 billion dollars annually to Iran for electricity 

$1.2 billion dollars x 1190 = 1.4 trillion IQD 

If iraq pay to Iran 1.4 trillion IQD and then RV, Iran will be getting a lot of money 

But if Iraq RV first and then pay. Iran will be getting $1.2 billion dollars at the new rate in dinars.

 

Go RV

Go $1:1

 

I REALLY Agree With You Here, Laid Back, AND The Very Best Of Your Week To You!!! :tiphat:

 

My opinion is THIS would go entirely against the reason(s) for the sanctions on Iran IF the Bicraqi Iraqi Dinar DID NOT ReInstate prior to the transactions with Iran based on Bicraqi Iraqi Dinar.

 

This may be a reason, too, the Insanians are wanting to lop four zeroes from THEIR rials.

 

I was surprised at the 90 day extension from nominally December 23, 2018. I understand some of the physical limitations with getting the vented and burned off gas captured and routed to power generators as a substitute for imported Insanian gas.

 

However, what will be accomplished in the 90 day period to alleviate to Insanian gas demand for power generation?

 

I suspect the remainder of the 90 days to nominally March 23, 2019 will be eventful. Whatever the events may be.

 

Go Moola Nova!

:pirateship:

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4 hours ago, yota691 said:

We are in an unequal economic war, but the country is not in bad shape, we will face the ban with all our energy and we will get out of Dhafrin," Zamani Nia told the 13th annual conference of the Union of Oil, Gas and Petrochemical Producers on Sunday evening.

 

Not True.  They may be making a few deals on the black market but their people are suffering, scrounging just to find food to eat.  

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