The Iraqi government has offered to barter oil for weapons as the country is in need of arms due to the ongoing war with IS militants as well as is facing a budget constraint.
Paying for oil with weapons and arms is the latest move by the government to save hard cash and meet a massive budget deficit caused by plummeting oil prices, according to the local daily Azzaman.
“Since Iraq is facing a financial crisis, there are proposals from various parties on the necessity of paying for weapons with oil,” an Oil Ministry’s official was quoted as saying by the local daily.
However, the official did not specify whether the government has signed arms deals, but it is believed that the ministry has drawn plans to barter oil for weapons.
“With oil prices falling and deficit widening it is necessary to barter oil for weapons purchases from other countries,” the head of the parliamentary Commission on Defense and Security Hakim al-Zamili said.
Iraq pays billions of dollars to cover for weapons, the need for which has surged since Islamic State militants invaded northern and western parts of Iraq, occupying major towns.
“We need to revise and reconsider our arms deals because they have been based on false priorities,” Zamili added.