EU Expects to Bolster Energy Ties with Iraq
The European Union and Iraq expect to assure a broad trade and political pact by the end of the year that will forge deeper energy ties between the two, sources said after agreements. The 27-nation bloc wants to remove itself off its reliance on Russian oil and gas, and sees Iraq as a long-term alternative energy supplier. “The agreement will be concluded by the end of the year,” an Iraq source reported, after the latest round of talks in Brussels on the so-called Partnership and Cooperation Agreement (PCA).
An EU source at the negotiations stated only technical affairs remained to be resolved before the EU and Iraq could sign the PCA, laying out what will be the first acknowledged amongst the two.
“It will certainly cause significant improvement in trade between the EU and Iraq,” stated an EU source.
Europe accumulates nearly a quarter of its natural gas from Russia. A reliable supply of gas from Iraq would help get a head start to the delayed Nabucco pipeline aimed at attaining energy from the Caspian and beyond to European customers through Turkey.
Energy Industry Regional Analysis: Middle East
Earlier this month, the EU ratified pacts with Azerbaijan, Turkey and Georgia headed towards establishing a central EU gas-buying consortium and setting new terms for transporting Caspian gas.
It also committed to seek a memorandum of understanding with Iraq on energy supplies.
The EU-Iraq PCA has been in negotiation since 2006 and will cover a broad range of economic, political and cultural ties, including trade in areas such as agriculture, investment in the Iraqi economy and joint efforts to combat terrorism.
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