Iraq has failed to pay $1.6 billion owed to neighbouring Iran for gas imports, which is needed to guarantee further supplies and prevent worsening power cuts, Baghdad authorities said on Wednesday.
Payment of the debt was a vital requirement to ensure energy supplies were available for Iraq's power plants during the intense heat of the summer months, when electricity demand surges as people seek to keep cool.
The failure to pay comes as Iraq’s oil revenue imports reached another record high. Iraq's revenue reached $11.436 billion in May and has surpassed $10bn every month since March.
The last time oil revenue in Iraq was as high was in April 2012, when it reached almost $8.8bn.
“Iran had demanded the payment by Iraq of its financial obligations for the payment of the gas,” Iraq's Electricity Ministry said in a statement.
However, “the delay in the adoption of the budget”, as well as parliamentary blockages stalling a bill that aimed to guarantee debt payments in the electricity sector, led to “delays”.
Supplies have already been reduced by five million cubic metres of gas per day, limiting the operation of the power stations and “reducing the hours of electricity supply”, the ministry said.
Iran gas supply issues
Iran currently provides a third of Iraq's gas and electricity needs but supplies are regularly cut or reduced, aggravating daily load-shedding.
Iraq has struggled to pay Iran on time, first because of spending on security during the war against ISIS between 2014 and 2017 — which followed a slump in oil prices — and later due to the Covid-19 pandemic, which caused an unprecedented collapse in oil prices.
Iran also struggles to meet domestic demand, particularly during Tehran's cold winters and at the height of summer, when high temperatures scorch the south of the country.
Iraq's Electricity Ministry highlighted the “efforts of parliament and the government” to allow the ministry to “find compromise solutions with Iran in order to pay the arrears and guarantee the supply of gas”.
The debt, which was due to have been paid by the start of June, dates back to 2020.
Payment stalled amid sanctions against Iran by the US, which mean that Baghdad could not pay directly for energy imports in cash.
Instead, it must be used in a complicated process to buy goods from the agriculture or pharmaceutical sectors.
Last year, when temperatures in Iraq soared to 52°C in the shade, swathes of the country suffered blackouts, sparking several sporadic protests and prompting the electricity minister to resign.
Iraq is already sweltering, with temperatures climbing to 48°C on Thursday, the meteorological service says.
Ranked as one of the world's five most vulnerable nations to the effects of climate change, Iraq has been hit by a series of sandstorms in recent months, sending thousands of people to hospital with respiratory problems.
Ramy%3A%20Season%203%2C%20Episode%201
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Gender equality in the workplace still 200 years away
It will take centuries to achieve gender parity in workplaces around the globe, according to a December report from the World Economic Forum.
The WEF study said there had been some improvements in wage equality in 2018 compared to 2017, when the global gender gap widened for the first time in a decade.
But it warned that these were offset by declining representation of women in politics, coupled with greater inequality in their access to health and education.
At current rates, the global gender gap across a range of areas will not close for another 108 years, while it is expected to take 202 years to close the workplace gap, WEF found.
The Geneva-based organisation's annual report tracked disparities between the sexes in 149 countries across four areas: education, health, economic opportunity and political empowerment.
After years of advances in education, health and political representation, women registered setbacks in all three areas this year, WEF said.
Only in the area of economic opportunity did the gender gap narrow somewhat, although there is not much to celebrate, with the global wage gap narrowing to nearly 51 per cent.
And the number of women in leadership roles has risen to 34 per cent globally, WEF said.
At the same time, the report showed there are now proportionately fewer women than men participating in the workforce, suggesting that automation is having a disproportionate impact on jobs traditionally performed by women.
And women are significantly under-represented in growing areas of employment that require science, technology, engineering and mathematics skills, WEF said.
* Agence France Presse
The%20specs
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The specs
Engine: 3.0-litre 6-cyl turbo
Power: 435hp at 5,900rpm
Torque: 520Nm at 1,800-5,500rpm
Transmission: 9-speed auto
Price: from Dh498,542
On sale: now
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Engine: 3.5-litre V6
Transmission: eight-speed automatic
Power: 290hp
Torque: 340Nm
Price: Dh155,800
On sale: now
THE BIO
Ambition: To create awareness among young about people with disabilities and make the world a more inclusive place
Job Title: Human resources administrator, Expo 2020 Dubai
First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group
Entrepreneur: Started his own graphic design business
Favourite singer: Avril Lavigne
Favourite travel destination: Germany and Saudi Arabia
Family: Six sisters
UAE currency: the story behind the money in your pockets
Result
2.15pm: Maiden Dh75,000 1,950m; Winner: Majestic Thunder, Tadhg O’Shea (jockey), Satish Seemar (trainer).
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5.15pm: Handicap Dh90,000 1,000m; Winner: Midlander, Richard Mullen, Satish Seemar
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Company%20profile
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RESULTS
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UAE currency: the story behind the money in your pockets
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
KILLING OF QASSEM SULEIMANI
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates