Rouhani says Iran ready to expand gas, power trade with Iraq

IranianPresident Hassan Rouhani called on Saturday for Iran and neighboring Iraq to expand their gas and electricity dealings and boost bilateral trade to 20 billion U.S. dollars, state TV reported, despite difficulties caused by U.S. sanctions against Tehran.

"The plans to export electricity and gas and hopefully oil continue and we are ready to expand these contacts not only for the two countries but also for other countries in the region," Rouhani said after a meeting with visiting Iraqi Prime Minister Adel Abdul Mahdi, in remarks carried by state television.

In March, the U.S. granted Iraq a 90-day waiver exempting it from sanctions to buy energy from Iran, the latest extension allowing Baghdad to keep purchasing electricity from its neighbor.

"We hope that our plans to expand trade volume to 20 billion U.S. dollars will be realized within the next few months or years," Rouhani said. Iranian media reports have put the current level of trade at about 12 billion U.S. dollars.

Rouhani expressed hope that work on building a railway linking the two countries would begin within the next few months.

The railway project was part of deals reached during , meant to underline that Tehran still plays a dominant role in Iraq despite U.S. efforts to isolate Iran.

Iraq on Saturday closed its Sheeb border crossing with Iran to travelers and trade until further notice, Iraqi security sources said, as flooding continues to submerge villages in southwestern Iran.

in November, citing its nuclear program and meddling in the Middle East, but has granted waivers to several buyers to meet consumer energy needs.

Iraq relies heavily on Iranian gas to feed its power stations, importing roughly 1.5 billion standard cubic feet per day via pipelines in the south and east.

(CGTN)