Iraq Warns of Economic Collapse Over Trump’s Threatened Sanctions

US would seize Iraq's oil revenues, 90% of their budget

Iraqi officials are warning that they would face almost immediate economic collapse if President Trump follows through on sanctions against them for asking US troops to leave. Iraq’s parliament voted on January 5, 170-0, to order the government to expel all foreign troops.

President Trump has threatened massive sanctions against Iraq, and more recently, suggestions are that the US would freeze Iraq’s bank account at the New York Federal Reserve, where all of Iraq’s oil revenues go.

Which is also 90 percent of Iraq’s budget. Iraqi officials have confirmed “threatening calls” from the US over the troops, insisting that they have no intention of leaving Iraq just because Iraq is asking.

The collapse of their entire economy, while still theoretical at this point, isn’t a healthy thing to have hanging over Iraq going forward. Siemens CEO Joe Kaesar warned he believes that “putting sanctions on something just because you don’t get your will is maybe also not always helpful.

Siemens has a $15 billion electricity development contract for Iraq. While they say they don’t intend to scale back the project, there is a risk for them, like everyone else, that the US will just take all of Iraq’s money and leave them unable to pay.

Author: Jason Ditz

Jason Ditz is news editor of Antiwar.com.