The Trump administration reportedly lobbied on behalf of General Electric to win a $15 billion deal to develop Iraq's power stations that would have been awarded to Siemens Corporation.
Siemens had reportedly been working hard to win the contract for several months only to be undercut by negotiators for the Trump administration.
The move was in line with the administration's goal of stopping practically all Iranian oil exports worldwide after U.S. President Donald Trump decided to withdraw from the Iran Nuclear Deal in March this year. A fresh round of sanctions on Iran is set to take effect by November 5. The United States asserts that Iran continues with policies that are threats to worldwide peace.
The U.S. officials who lobbied for General Electric said the accord was intended for Iraq not to rely anymore on Iran for the supply of natural gas. Bloomberg reported that Iraq imports about 12 million cubic meters of natural gas daily from Iran to keep one-fifth of its power generation running.
Garrett Marquis, a National Security Council spokesman, told Bloomberg that the United States hoped to engage the Iraqi government deeply and reduce Iranian influence over the country.
Financial Times previously reported that U.S. officials reportedly warned Iraqi Prime Minister Haider al-Abadi that Iraq's relationship with Washington would be at risk if Siemens wins the contract for the power generation.
Washington has reportedly reminded Iraq that there were about 7,000 Americans who lost their lives since the 2003 invasion oust Saddam Hussein, according to an unnamed source who spoke with Financial Times.
On the other hand, Iraq was reportedly agreeable to the condition, hoping that the United States would somehow relax its penalties over Baghdad's oil purchases from Iran when new sanctions take effect on Nov. 5.
Under the contract with General Electric, the company would increase Iraq's power generation capacity by 2 to 3 gigawatts. Aside from this, the U.S. government said it would delegate companies that would help Iraq improve its transmission lines and upgrade existing power generation facilities.
Bloomberg reported that Washington hopes for the deal with General Electric be sealed before Nov. 5
Meanwhile, the head of state-run National Iranian Oil Company, Ali Kardor, said Washington is spreading "political bluff" with its statements saying that it would cut Iran's oil exports down to zero, Reuters reported, citing Tasnim news agency.
Kardor added that Iran has the support of Europe and could accept payment in euros instead of dollars.
The official is referring to the European Union's plan of establishing a Special Purpose Vehicle where countries could still trade with Iran without the risk of U.S. sanctions.
