Foreign Minister and Deputy Secretary of US Treasury Discusses Support for Iraq’s Energy Independence and Facilitating Gas Imports

Deputy Prime Minister and Foreign Minister Mr. Fuad Hussein, met with U.S. Deputy Secretary of the Treasury Dr. Michael Faulkender, at the Treasury’s Headquarters in Washington D.C, on 29 April 2025.

During the meeting, they discussed developments in Iraq’s energy sector and the Iraqi government’s efforts to achieve energy independence.

The Minister provided a detailed explanation of the serious steps taken by the government, especially the investment in associated gas, noting that Iraq has achieved significant progress in this field. As well the Minister indicated the signing of contracts with several companies to invest in liquefied natural gas, paving the way for self-reliance in the coming years.

The Minister indicated that Iraq currently faces significant challenges in the fields of gas and electricity, which requires diversifying its energy import sources, particularly from Turkey, Jordan, and the Gulf states.

In addition, Minister Hussein addressed the agreement between the Iraqi Ministry of Electricity and the government of Turkmenistan to purchase gas, and the ongoing talks with a number of liquefied natural gas producing countries. He pointed to the obstacles related to the intermediary company between Iraq and Turkmenistan and the difficulties associated with transporting Turkmen gas through Iranian territory. In this context, the American side affirmed that the current administration’s policy is to prevent Iran from benefiting from this process financially or in any other way. The Minister requested the U.S. Treasury Department to provide support in finding alternatives, in cooperation with the Turkmen side, to ensure the continued unhindered supply of gas to Iraq.

The Minister also raised the issue of the exemptions granted by the United States to Iraq regarding the purchase of gas and electricity from Iran, underlining the importance of facilitating the payment mechanism by returning to the previous system, which allows payment for food and medicine instead of direct cash payments, to ensure the continuity of supplies during this transitional phase until providing alternative sources.

At the end of the meeting, Mr. Falkender extended his gratitude to the Iraqi authorities for the level of mutual understanding, commending the ongoing cooperation between the Central Bank of Iraq and U.S. financial institutions, which he described as a positive step toward enhancing transparency and financial stability in Iraq.

On the Iraqi side, the meeting was attended by the Ambassador of the Republic of Iraq to Washington, Mr. Nizar Al Khairallah, head of America Department Dr. Diyari Majeed, head of Media Department Mr. Fuad Ghazi, Counselor Ahmed Abd Ali, and First Secretary Omar Behzad Mohammed. And from the U.S. side, Ms. Anna Morris, head of Treasury’s Office of Terrorist Financing and Financial Crimes and Assistant Secretary of the Treasury.