WASHINGTON (dpa-AFX) - President Joe Biden has pledged U.S. support for Iraq's progress towards energy self-sufficiency. The pledge came when he hosted Iraqi Prime Minister Mohammed Shiaa Al-Sudani at the White House Monday.
The two leaders discussed the Iraqi government's interest in future opportunities for cooperation to ensure Iraq becomes energy self-sufficient by 2030, with help from U.S. companies.
President Biden affirmed continued U.S. support for Iraq's efforts to modernize its energy sector, reduce methane emissions, improve public health, more reliably provide electricity for the Iraqi people, and complete the electrical grid connections with neighboring countries. Efforts are underway to connect Iraq's grid with Jordan and GCC countries.
The two leaders discussed future plans to develop Iraq's resources in a manner that ensures all Iraqis benefit from their country's natural wealth, consistent with Iraq's constitution.
Iraq was the world's fifth largest oil producer in 2009, and has the world's fifth largest proven petroleum reserves. But its oil sector has suffered over the past decades from sanctions and wars, and its oil infrastructure is in need of modernization and investment. Iraqi oil production has surged after years of disorder.
Sudani and Biden affirmed the importance of ensuring Iraqi oil can reach international markets and expressed their desire to reopen the Iraq-Turkey Pipeline, the White House said.
The two leaders also discussed Iraq's progressive efforts to reform its financial and banking sector to connect to the international economy and increase trade while shielding the Iraqi people from the harmful impacts of corruption and money-laundering. Through 2023 and 2024, banks in Iraq have expanded their correspondent relationships with international financial institutions to enable trade financing, with the majority of trade finance now occurring through these channels. The two leaders affirmed the importance of these and other measures to improve the investment climate in Iraq to attract foreign capital and promote economic growth.
The United States promised to support the Central Bank of Iraq to fully wind down the wire auction mechanism by the end of 2024 and transition to direct correspondent relationships between Iraqi and international banks.
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