BAGHDAD, Jan 5 (Reuters) – Iraq has been unable, due to U.S. sanctions, to pay Iran millions of dollars owed for electricity, an Iraqi official said, potentially damaging its efforts to supply enough power to a population suffering chronic shortages.
Iraq imports 650 megawatts of electricity from Iran and plans to boost imports to around 1,000 MW this year, Adel Mahdi, an adviser in the electricity ministry, said on Wednesday.
But due to U.S. sanctions against Tehran over its nuclear programme, foreign banks have refused to transfer at least $200 million of overdue payments to Iran, raising fears among Iraqi officials that a cheap and vital power supply could be cut ahead of the sizzling Iraqi summer.
