(MENAFN) Iraqi Prime Minister Mohammed Shia' al-Sudani announced Wednesday that the nation has terminated oil derivative imports, calling the decision "a significant step" in the government's systematic economic reform agenda.

Addressing tribal leaders, dignitaries, and social figures in Baghdad, al-Sudani stated "we have stopped the import of oil derivatives, which used to cost us around 6 trillion Iraqi dinars (over 4.5 billion U.S. dollars)," his media office confirmed in a statement.

The cessation of direct oil purchases follows three years of governmental initiatives that produced new refinery infrastructure, forming part of a comprehensive strategy to boost domestic output and attain self-reliance, the statement indicated.

Al-Sudani further emphasized parallel initiatives to eradicate gas flaring, which "costs us 4 billion dollars annually," and obstructs "energy independence."

Local media outlets reported Tuesday that al-Sudani issued orders to immediately stop gasoline, gas oil (diesel), and kerosene imports.

Iraq's financial system depends overwhelmingly on crude oil sales, which generate approximately 90 percent of national revenues.

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