The Iraqi foreign policy team, led by Fuad Mohammad Hussein, underscored Baghdad’s recognition of the practical need to move funds toward Moscow due to ongoing Russian business activity. During a visit to Washington, Hussein stated that discussions are underway about when such payments should occur, signaling a careful balancing act as Iraq weighs its economic interests against its diplomatic commitments in a landscape shaped by sanctions. The remarks reflect a broader debate within Iraq about how to honor international financial obligations while maintaining robust ties with Western partners and regional allies alike.
Hussein cautioned that any financial engagement with Russia could complicate sanctions policy and, in turn, challenge the stability of Iraq’s financial sector. He emphasized the responsibility to shield the country’s banks, the central bank, and the wider banking system from penalties or disruptions that might arise if policy choices were interpreted as contravening Western restrictions. Protecting financial integrity, in his view, is not only a domestic concern but a strategic necessity for Iraq to sustain credible access to global financial networks while pursuing its development priorities.
According to Hussein, Baghdad is actively coordinating with the United States on these matters. He suggested that if Russia returns to the negotiating table, Iraq will present a clear case about why transferring funds to Moscow is not a simple or routine decision. The discussions focus on aligning payment obligations with the risk posture of Iraq’s banking system, ensuring any agreement fits within the legal and regulatory framework of Iraq and honors its commitments to international partners.
Hussein added that if an agreement can be reached with Russia to maintain the integrity of Iraq’s financial institutions, Baghdad would pursue it, acknowledging the obligation to settle outstanding financial obligations to Russian counterparts. He noted that the timing of payments would emerge from constructive dialogue, with both sides understanding the sensitivities involved in cross‑border settlements, currency movements, and the goal of preventing negative spillovers into Iraq’s financial stability.
Separately, former Iraqi President Abdel Latif Rashid urged the international community to ease restrictive measures that deepen human suffering, particularly in the aftermath of earthquakes that affected Turkey and Syria. Rashid argued that sanctions, while sometimes used to influence behavior, can intensify hardship for ordinary people and hamper emergency relief and reconstruction efforts. His comments reflect a broader concern among regional leaders about the humanitarian costs of sanctions and the need to separate targeted actions from broad economic penalties that impact daily life for neighboring nations and trading partners.