Insights on Iraq’s Energy Policy Challenges
In a recent statement, Luay Khatib, the former Minister of Electricity and a member of the Federal Energy Council during the administration of Adel Abdul Mahdi, highlighted critical concerns regarding U.S. pressure on Iraq’s energy independence from Iranian sources. Khatib warns that reliance on Iranian electricity presents substantial risks to both Iraq’s economy and its overall political stability.
This commentary emerged during the annual Erbil conference held on February 28, 2028, organized by the Rudaw Research Center. A pivotal panel titled ‘Regulation of Oil and Gas Demands and the Future of Energy Transmission in Iraq’ featured Khatib, where he discussed the pressing need for regulatory reforms in the energy sector.
Khatib emphasized, “The only solution is to advance federal laws and institutions in compliance with our constitutional framework, ensuring all parties adhere to established agreements.” He urged a return to constitutional principles to address ongoing challenges, acknowledging the centralization that hampers effective federalism in Iraq.
He further articulated, “Despite having a federal system in place, the practical execution often resembles a highly centralized approach.” This critique implies that Baghdad’s interpretation and implementation of federalism often overlook the autonomy intended for regional administrations.
As tensions escalate, Khatib expressed concern over increasing external pressures, particularly from the United States, regarding Iraq’s energy dependencies. “If the United States is earnest about fostering Iraq’s energy independence from Iranian gas and electricity,” he stated, “it could pose a significant threat to the Iraqi economic and political landscape.”
Historically, the U.S. has urged Iraq to reduce its energy reliance on Iran, a policy that has seen various stages of enforcement. The approach under the previous administration maintained a focus on a framework of demands and strategic pressures, particularly against the backdrop of a complex regional dynamic.
Since 2018, the U.S. government has issued numerous waivers allowing Iraq to continue purchasing Iranian energy, a practice that underscores the ongoing tug-of-war over energy autonomy and compliance with international sanctions.
