Iraqi Kurdistan seeks Baghdad’s assistance to meet financial obligations
The capital of the Kurdistan region of Iraq, Erbil.
Baghdad (IraqiNews.com) – The Kurdistan region of Iraq urged the federal government in Baghdad to release additional funds to satisfy its financial obligations, including employee salaries.
The main source of income for the Kurdistan region of Iraq used to be oil exports through Turkey.
12.67 percent of the federal budget was added as a supplement to the oil export revenues Iraqi Kurdistan relies on; however, due to disagreements with Baghdad, these federal budget payments have fluctuated throughout the years.
Turkey stopped Iraq’s exports of 450,000 barrels per day through the oil pipeline that extends from the Kurdistan region of Iraq to the Turkish port of Ceyhan on March 25.
The halt of oil exports from the Kurdistan region of Iraq cost the Kurdistan Regional Government (KRG) billions of dollars.
Turkey’s decision to suspend oil exports followed an arbitration decision issued by the International Chamber of Commerce (ICC) in Paris.
The decision obliged Turkey to pay Baghdad $1.5 billion in compensation for damages caused by the KRG’s export of oil without permission from the federal government in Baghdad between 2014 and 2018.
The KRG began exporting crude oil independently in 2013, a step Baghdad considered illegal.
Baghdad has been transferring money on a monthly basis to the Kurdistan region of Iraq, but the amounts are not sufficient to cover its obligations.
The Iraqi Council of Ministers approved this week a transfer for September, October, and November totaling 500 billion Iraqi dinars (approximately $381 million).
The Kurdistan Regional Government (KRG) said on Wednesday that the amount is less than the 906 billion Iraqi dinar ($691 million) required every month to pay wages.
Thousands of people carrying flags of Iraqi Kurdistan demonstrated on Tuesday in the autonomous region over unpaid civil service salaries, which they blamed on Baghdad, according to the AFP.
The protesters demanded their salaries for the past two months.