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By John Lee.

The Embassy of the Republic of Iraq has officially begun operating in Ashgabat, marking a new step in strengthening diplomatic relations between Iraq and Turkmenistan.

The development was discussed during a meeting on 9th March 2026 at the Ministry of Foreign Affairs of Turkmenistan between Deputy Foreign Minister Serdar Muhammetdurdyyev and Jassim Mohammed Al-Attar, Chargé d'Affaires of the Iraqi Embassy in Turkmenistan.

During the meeting, the Turkmen deputy foreign minister welcomed the Iraqi diplomat and expressed appreciation for Iraq's decision to open an embassy in the Turkmen capital. He also reaffirmed Turkmenistan's readiness to provide all necessary assistance to support the full operation of the diplomatic mission.

Both sides noted that the opening of the embassy is expected to further strengthen bilateral relations across several areas, including political and diplomatic cooperation, trade and economic ties, and cultural and humanitarian exchanges.

Officials highlighted the role of high-level meetings and ongoing political consultations between the two countries' foreign ministries in developing relations. The most recent round of consultations took place in October 2025 in Baghdad.

The discussions also covered opportunities to expand trade and economic cooperation, including partnerships between business communities in both countries. Potential collaboration in science, education, sport, and tourism was also discussed.

Diplomatic relations between Turkmenistan and Iraq were first established in 2009, and contacts between the two countries have since expanded across multiple sectors, including cooperation on the international stage.

(Source: Ministry of Foreign Affairs of Turkmenistan)

By John Lee.

The fourth round of political consultations between the Republic of Iraq and the Republic of Turkmenistan was held on Monday, 20 October 2025, at the Ministry of Foreign Affairs in Baghdad.

The Iraqi delegation was headed by Ambassador Mohammed Hussein Bahr Al-Ulum, Deputy Foreign Minister for Bilateral Relations, while the Turkmen side was led by Deputy Foreign Minister Ahmed Gurbanov.

Discussions focused on strengthening bilateral cooperation, particularly in economic, trade, and investment sectors, within the framework of existing agreements and memoranda of understanding. Both sides reaffirmed their commitment to developing partnerships that serve the mutual interests of the two nations.

Deputy Minister Bahr Al-Ulum invited Turkmenistan's public and private sectors to visit Iraq to explore opportunities for cooperation and partnership, highlighting the positive political and security environment in the country. During the meeting, a memorandum of understanding was signed between the two countries to cooperate in the energy sector and on gas imports, supporting both nations' energy needs.

The Iraqi side also underlined the importance of cultural and educational initiatives to strengthen people-to-people ties, including the "Study in Iraq" programme launched by the Ministry of Higher Education and Scientific Research to attract students from friendly countries.

Both parties emphasised that official visits between their leaders are a key pillar of bilateral relations and that the opening of embassies in Baghdad and Ashgabat will mark a strategic step in enhancing diplomatic, political, economic, and cultural cooperation. They agreed on several practical steps to be studied and implemented jointly in the near future to build strategic relations fulfilling the aspirations of both nations.

According to the Ministry of Foreign Affairs of Turkmenistan, the visit of Deputy Foreign Minister Ahmed Gurbanov to Baghdad also included a meeting with Abdul Razzaq Al-Zuhairi, President of the Federation of Iraqi Chambers of Commerce. The two discussed ways to deepen trade and economic relations and stressed the importance of establishing direct contacts between the business communities of both countries, as well as active participation in international forums, exhibitions, and business meetings.

(Sources: Iraqi Ministry of Foreign Affairs / Turkmenistan Ministry of Foreign Affairs)

By John Lee.

Iraq's attempt to import gas from Turkmenistan via Iran has reportedly failed following pressure from the United States.

Click here to read the full article.

(Source: Reuters)

From Kurdistan24. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

U.S. Sanctions on Iran Derail Crucial Iraq-Turkmenistan Gas Deal

The U.S. opposes the Turkmenistan-Iraq gas deal as it routes gas via Iran, allowing Tehran to keep a share as a transit fee and profit from Iraq's purchases. Washington seeks to block Iranian gains, stalling negotiations.

Click here to read the full article.

By Padraig O'Hannelly.

As Donald Trump completes his first 100 days in as US President, what effect have his policies had on the Iraqi economy?

Firstly, it's worth noting that the main implications of Trump's policies for Iraq have been the indirect results of decisions not directly targeted at Iraq. Increased tariffs and the resultant drop in oil prices, the slashing of foreign aid across the board, and Trump's 'maximum pressure' policy towards Iran have been the three biggest consequences for Iraq since the change of regime in Washington on 20th January.

Tariffs and Oil Prices

While the United States applied an additional duty rate of 39 percent to imports from Iraq from 5th April, as part of its wider 'reciprocal tariffs' (sic) policy, the new rate does not apply to US imports of oil, which account for almost all of Iraq's exports to the US.

However, Trump's approach to tariffs in general, combined with his unpredictable nature, has led to fears of a significant slow-down in international trade, and undermined the confidence of investors and consumers worldwide. As a result, the price of Brent crude has fallen from around $75 at the start of the month to $65 today; in mid-2024 it was as high as $85.

These drops imply reduced oil revenue for Iraq. Iraq's National Development Plan 2024-2028, launched last summer, but withheld from the public until late December, assumes a price of $74 this year, for example.

(Source: National Development Plan 2024-2028)

But as our Expert Blogger Ahmed Tabaqchali notes, Iraq has the capacity to support its spending plans by selling government debt, and this in turn can help develop the country's bond market, contributing to the evolution of the capital markets in Iraq. So while reduced oil revenue is a negative for Iraq, many expect short-to-medium-term development to continue as planned.

Foreign Aid

By some estimates, more than half of the humanitarian plans in Iraq were funded by the United States, so it should be no surprise that Trump's freezing of foreign aid and shutting down of the United States Agency for International Development (USAID) would have a major impact on a wide range of valuable initiatives throughout the country.

According to the Washington-based Enabling Peace in Iraq Center (EPIC), "in fiscal year 2023, U.S. assistance to Iraq amounted to $592.7 million." It says the halt in funding and the stop-work order for USAID has already disrupted lifesaving programs in Iraq.

Our Tenders page on Iraq Business News has seen only a small drop in activity, as many international NGOs have been able to continue with their work, but many programs have been cancelled or scaled back.

Sanctions on Iran

The removal of Iraq's waiver from US sanctions on Iranian energy imports has created immediate economic strain, but it has also accelerated efforts to reduce dependence on Iran. The sudden change of policy risks widespread blackouts, particularly during the extremely hot summer months, but it should also be noted that Iran was already expected to have difficulty supplying Iraq this summer, as it struggles to meet domestic energy demand.

To mitigate the effects of this decision, Iraq has prioritised alternative supply projects, including a gas deal with Turkmenistan, increased electricity imports from Turkiye, and the creation of a floating platform for LNG imports. Iraq also plans to have completely stopped the flaring of associated gas by early-2028.

While the cancellation of the waiver will undoubtedly cause hardship over the coming months, the import of gas and electricity from Iran was always regarded as a temporary solution, and pulling forward projects to replace Iranian supply could be considered a worthwhile investment.

Trump withdrew the US from the Joint Comprehensive Plan of Action (JCPOA) in 2018. Discussions continue regarding a possible new deal between US and Iran, and the final shape of any such deal will have implications for Iraq's economy and politics.

Iraqi dinar

Finally, for the benefit of those who've bought Iraqi dinars (IQD) in the hope of stratospheric upward revaluations, it should be mentioned that has, of course, not happened.

There has been a noticeable increase in interest in this "dinar RV" theory since Trump was elected in November, but not a shred of evidence to support the idea, and no indication from the President that he has any interest in the topic.

In an entirely unscientific online survey we ran in January, more than half of respondents said they expected the Iraqi dinar to revalue by at least 1,000x in the first 100 days of Trump's term, as if this was something that the President could magically bring about, even if he wanted to.

Doubtless the adherents to this theory will find a way to explain why it has not happened as they hoped, consider it a 'delay', and focus on some future timeframe when their faith will be rewarded.

© Iraq Business News

By Dr Ali Mamouri, for Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Deep Dive: How Turkmenistan can help Iraq end its energy crisis

With growing energy needs and ongoing US pressure, now seems to be the right time for all involved countries -- Iraq, Iran and Turkmenistan -- to implement the swap model.

The unfolding of Iran-US diplomacy only provides further impetus for a win-win approach.

The full article can be viewed here.

By John Lee.

Iraq's Minister of Electricity, Eng. Ziyad Ali Fadel, has addressed key energy issues in interviews with Al Arabiya and Al Hadath, outlining government efforts to secure power supply and mitigate potential summer shortages.

Key points include:

• The halt of exemptions has affected 800 MW of electricity imports from Iran, impacting Diyala, Maysan, and Basra.
• The Ministry has not received official notification regarding the suspension of Iranian gas imports, with discussions ongoing.
• Alternative measures include fuel oil (kaz), regional power grid connections, solar power projects, and the establishment of a floating LNG terminal.
• Turkmenistan is being considered as an alternative gas supplier, as it is not subject to sanctions.
• A floating platform for LNG imports will be installed in the Gulf by June to supply power plants.
• Turkey has agreed to double electricity supply via the Iraq-Turkey interconnection to 600 MW starting mid-May.
• Iraq-Kuwait grid connection is 90% complete, with landmine clearance in Fao delaying finalization.
• Renewable energy projects under development:
  • 1,000 MW solar by TotalEnergies (Basra)
  • 750 MW by PetroChina (Muthanna)
  • 500 MW by Bilal Iraq (Babel & Karbala)
  • Additional 15,000 MW planned using combined-cycle and solar technologies.
• Iraq is shifting towards 15,000 MW of crude oil-based power generation, similar to Saudi Arabia's model.
• Major agreements planned:
  • 24,000 MW with GE (USA)
  • 10,000 MW with Siemens (Germany)
• Iraq is executing its largest-ever power grid expansion, upgrading transmission lines and substations to stabilize electricity supply.

(Source: Ministry of Electricity)

By John Lee.

Iraq's Council of Ministers has approved a recommendation from the Ministry of Foreign Affairs to establish ambassador-level diplomatic relations with Turkmenistan.

The move comes after recent cabinet approval of a plan to import gas from Turkmenistan, via a swap arrangement with Iran.

(Source: PMO)

By John Lee.

Iraq's Minister of Electricity, Eng. Ziad Ali Fadel, has signed a significant agreement with Turkmenistan to secure gas supplies for Iraq's power stations.

The deal, signed by Iraq's Minister of Electricity and Turkmenistan's Minister of State for Gas Affairs, Maksat Babayev, aims to diversify gas sources and ensure a steady fuel supply for electricity production.

The agreement finalizes pricing, supply quantities, and logistics after extensive negotiations. Both parties expressed optimism about strengthening energy cooperation and expanding economic ties.

More details on the deal here.

(Source: Ministry of Electricity)

By John Lee.

Iraq's Council of Ministers has authorized the Ministry of Electricity to contract with the Swiss company Loxstone Energy for the supply of gas from Turkmenistan to Iraq via Iran under a swap agreement.

Due to the importance and urgency of this contract in maintaining the operation of power plants, the deal is exempt from the Government Contracting Instructions, the Federal Budget Law, and the Budget Implementation Guidelines.

The gas supplier is the Turkmen state-owned gas company [Turkmengaz], with whom a memorandum of understanding was previously signed based on Council of Ministers' Decision No. 23519 of 2023.

Cabinet approved adoption of a prepayment mechanism required by the Turkmen gas company, with the Ministry of Finance ensuring the necessary financial allocations are available on time. The government entity will cover taxes and fees.

It also approved exemption from the performance bond, "similar to the Iranian gas contract", with payments made through transfers to the Turkmen gas company and Loxstone Energy, according to the mechanism recommended by the Trade Bank of Iraq (TBI).

The contract will not be subject to the Public Debt Collection Law; it will be governed by Swiss law, and the contract draft will be based on the sole bid received.

(Source: PMO)