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Iran asks Iraqi PM Al-Zadi to pay $11 billion in gas debts

Iraqi Prime Minister Ali al-Zaidi was called upon by Iranian officials to repay an $11 billion debt for natural gas purchases during his recent trip to Tehran, as revealed by reputable sources in Iraqi media. 

Based on information from two sources, one associated with al-Zaidi and the other an Iraqi ambassador, the Iraqi prime minister informed Iranian authorities that Baghdad could not deliver the complete amount at this time.

Al-Zaidi, instead, proposed the transfer of $1 billion to Saudi Arabia to cover the Hajj fees that Iran owes.

Tehran rebuffed P.M. al-Zaidi's offer and demanded payment to Iran. 

As reported by sources, Iraq has previously employed frozen Iranian funds for limited uses, including the expenses of Iranian pilgrims, under arrangements that are designed to align with U.S. sanctions.

Iraq faces significant hurdles in repaying its debt in U.S. dollars due to U.S. sanctions on Iran and the related banking restrictions.

Same sources claimed that al-Zaidi's meetings in Tehran were more difficult than the authorities' announcements suggested, as Baghdad left without achieving its key objectives, namely the settlement of the unpaid debt and the transit of Iraqi oil tankers through the Strait of Hormuz.



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