The waiver is conditional on Iraq not paying Iran for the imports in U.S. dollars, said the officials, who included a member of Iraq's ministerial committee that oversees energy activities. The U.S. sanctions take effect on Nov. 4.
The ministerial committee official said Iraq's finance ministry had set up an account with a state-run bank where Baghdad would deposit in Iraqi dinars the amounts owed to Iran for the imports.
Central bank officials said in August that Iraq's economy is so closely linked to Iran that Baghdad would ask Washington for permission to ignore some U.S. sanctions.
Iraq imports crucial supplies from its neighbour including uses gas for power stations. (Reporting by Ahmed Rasheed and Aref Mohammed in Basra Writing by John Davison Editing by David Stamp and Raissa Kasolowsky)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)