By John Lee.
An Iraqi government spokesman has said Iraq views recent US sanctions against Iraqi enities, including the Muhandis General Company [Sharakat al-Muhandis al-Amma], as “deeply regrettable,” describing it as a unilateral action that contradicts the spirit of friendship and mutual respect between the two countries.
Basim Alawadi added that the Prime Minister has ordered the formation of a high-level national committee – including representatives from the Ministry of Finance, the Federal Board of Supreme Audit (FBSA), the Integrity Commission, and the Central Bank of Iraq (CBI) – to review the sanctions and report within 30 days with legal and administrative recommendations.
Alawadi emphasised that Iraq remains committed to international agreements, upholding the rule of law, and preventing any financial or economic activity outside the national legal framework. He also noted that corrective measures will not affect the rights of citizens or employees unrelated to the sanctioned entities.
The government reiterated its rejection of any external interference in Iraq’s internal affairs and said it continues to work toward transparency, reform, and a balanced foreign policy.
Full statement from the Media Office of the Prime Minister:
The Iraqi government reaffirms that the rule of law and its enforcement form the foundation of the state’s work across all sectors. Iraq remains committed to the international treaties and agreements it has signed and is determined to uphold them, in accordance with its active role within the international community and its adherence to recognized international norms and principles.
The government is closely following the recent decisions of the U.S. Department of the Treasury, which imposed sanctions on Al-Muhandis General Company and several other entities, under the pretext of their alleged association with parties subject to U.S. legal measures.
The Government of Iraq views this unilateral action as deeply regrettable, as it contradicts the spirit of friendship and mutual respect that has long characterized the bilateral relationship between the two countries. Taking such a decision without prior consultation or dialogue represents a negative precedent in the approach to relations between allied nations. Iraq calls on its international partners, particularly the United States of America, to pursue cooperation and information-sharing on technical and financial matters, especially in light of the comprehensive structural reforms this government has implemented in the Iraqi banking and financial sectors.
The Prime Minister has directed the formation of a high-level national committee, comprising representatives from the Ministry of Finance, the Federal Board of Supreme Audit, the Integrity Commission, and the Central Bank of Iraq, to review the matter in question and submit a detailed report and recommendations within 30 days, including all required legal and administrative measures.
The Prime Minister also emphasized the state’s responsibility to protect civilian employees and vital projects associated with these companies, ensuring the continuity of services without disruption. He stressed that any corrective measures must not affect the rights of citizens or employees unrelated to the activities under review.
The government reiterates that Iraq firmly rejects any economic or financial activity conducted outside the national legal framework, or that could be exploited to finance armed groups or compromise the higher interests of the Iraqi people. It continues to adopt transparent measures to protect public funds and prevent any entity from operating outside state authority, while rejecting any form of guardianship or external interference in its internal affairs.
The government will investigate these allegations to strengthen the path of institutional and economic reform, reinforce trust between citizens and the state, and consolidate the concept of building national state institutions. It also reaffirms its commitment to advancing its national project, achieving equitable development, and ensuring a transparent and investment-friendly economic environment that serves the interests of Iraq and its people, while maintaining balanced relations with all regional and international partners.
Basim Alawadi
Iraqi Government Spokesman
October 11, 2025
(Source: PMO)
