H.R. 2658: Free Iraq from Iran Act

This bill, titled the "Free Iraq from Iran Act," aims to establish a strategy for the United States government to support Iraq in distancing itself from Iranian influence and the activities of Iran-backed militias. The bill sets out several key components:

Policy Statement

The bill articulates the United States' policy to support the Iraqi people in their pursuit of independence from Iranian influence and to advocate for democracy, rule of law, and human rights in Iraq.

Interagency Strategy Development

Within 180 days of the bill's enactment, the Secretary of State, teaming up with the Secretary of the Treasury and the CEO of the U.S. Agency for Global Media, must develop a strategy. This strategy focuses on:

• Dismantling Iran-backed militias, including the Popular Mobilization Forces (PMF), to curb Iran’s control over Iraq’s political landscape.
• Ceasing U.S. security assistance to Iraq unless specific conditions are met, such as dismantling militias and stopping any sponsorship of terrorism.
• Supporting Iraqi civil society against Iranian control, which includes using intelligence to monitor and counter disinformation by Iranian entities.
• Enhancing media efforts to inform Iraqi citizens about Iranian atrocities and corruption.

Designation of Militias as Terrorist Organizations

Within 90 days of enactment, the Secretary of State must designate multiple Iranian-aligned militias in Iraq as foreign terrorist organizations. These include groups like the Badr Corps and the PMF, among others.

Financial Provisions

• No federal money may be allocated to support the identified militias or their members.
• U.S. funding assistance to the Federal Government of Iraq will be prohibited unless specific conditions regarding the dismantling of these militias are met.
• Funding restrictions can be waived by presidential certification under certain circumstances.

Sanctions on Key Individuals and Entities

The bill empowers the Secretary of the Treasury to identify and impose sanctions on individuals and entities that support Iranian interests in Iraq. This includes political figures and organizations that facilitate Iran-backed activities.

Prohibition on Importing Natural Gas

The bill specifically prohibits the importation of liquefied natural gas by any entity in Iraq from Iran.

Implementation and Reporting

Once the strategy is developed, a plan for its implementation must be submitted within 60 days. The bill mandates that the strategies and plans must be transparent and submitted in an unclassified format, although classified annexes may be included if necessary.

Policy Review

The bill also requires annual reviews of Iraq's support for Iranian militias to assess compliance with the established objectives.

Relevant Companies

• XOM (Exxon Mobil Corp): May be impacted as U.S. sanctions could affect their operations in Iraq, especially concerning natural gas imports from Iran.
• CVX (Chevron Corporation): Similar to Exxon, Chevron's investments in Iraq's energy sector may face complications due to prohibition on imports from Iran.