Latest news with #BudgetLaw
Shafaq News
16-07-2025
- Business
- Shafaq News
Baghdad-KRG strike deal on salaries and oil
Shafaq News – Baghdad/Erbil Baghdad and the Kurdistan Regional Government (KRG) finalized a financial agreement on Wednesday, ending a months-long impasse over several critical issues. A well-informed source told Shafaq News that under the deal, the federal government will transfer 240B IQD (~ $183M)—120 billion each for May and June—to cover delayed salaries. In exchange, the KRG will supply 230,000 barrels of crude oil per day and transfer non-oil revenues from border crossings. Technical teams from both sides will begin auditing export volumes and revenue figures, paving the way for broader negotiations on Kurdistan's full budget entitlement, the source added. A federal source separately confirmed that Baghdad is awaiting formal documentation from Erbil to activate the agreement through joint committees. Earlier today, the Kurdish Council of Ministers, in a session led by Prime Minister Masrour Barzani and Deputy Prime Minister Qubad Talabani, approved the agreement's terms and condemned recent sabotage of the Region's energy infrastructure—particularly oil fields—urging Baghdad to investigate and prevent further attacks. مجلس الوزراء يوافق على التفاهم جديد بين حكومة إقليم كوردستان والحكومة الاتحادية بشأن الرواتب والمستحقات المالية — Kurdistan Regional Government (@Kurdistan) July 16, 2025 The deal comes amid growing unrest in the Kurdistan Region, where nearly 1.5 million public employees have gone unpaid since May. Baghdad had suspended transfers, accusing Erbil of 'failing' to meet conditions in the 2023–2025 Budget Law.
Shafaq News
11-06-2025
- Business
- Shafaq News
Exclusive: Iraq to submit 2025 budget to Parliament in July
Shafaq News/ The draft 2025 Iraqi budget will be submitted to the Council of Representatives at the beginning of July, an Iraqi MP confirmed on Wednesday. The member of the Parliament's Finance Committee, Moeen Al-Kadhimi, told Shafaq News that the Ministry of Finance has finalized its comments on the Federal Budget Law's tables and submitted them to the Council of Ministers for review. The goal is to assess the overall budget and compare it to last year's figures in light of this year's decline in revenue. He explained that the Ministry is currently preparing the final budget tables, pending the cabinet's response to its remarks. The 2025 budget bill is expected to be referred to Parliament early next month, once approved by the Council of Ministers. The Finance Committee believes the budget should be aligned with actual revenues and not exceed 140–150 trillion dinars (about $99,044B - $10.611B)—the range adopted in the 2023 and 2024 budgets, Al-Kadhimi noted. Since 2023, Iraq has operated under a three‑year Budget Law covering 2023–2025, approved by Parliament in June 2023. This law requires the government to submit detailed annual budget tables—including revenue estimates and expenditure allocations—for legislative review and implementation each year. However, delays in delivering the 2025 tables have effectively stalled budget execution, raising concerns ahead of anticipated early elections.
Shafaq News
05-06-2025
- Business
- Shafaq News
Kurdistan responds to Baghdad: A political statement detached from facts
Shafaq News/ The Kurdistan Regional Government (KRG) has sharply rebuked a recent statement issued by Iraq's Ministry of Oil, accusing Baghdad of distorting facts and perpetuating constitutional violations in a deepening dispute over oil production and revenues. Earlier today, the Federal Ministry of Oil called on KRG to adhere to the Constitution, court rulings, and the Budget Law by delivering oil to federal authorities. It warned that ongoing non-compliance 'causes major financial losses to Iraq and damages Iraq's international reputation,' citing alleged 'smuggling' from the Region and vowing legal action. In a detailed press release issued on Thursday, the KRG's Ministry of Natural Resources described the federal ministry's remarks as 'a political statement that is far removed from objective facts,' and held the federal government responsible for policies that have led to economic harm, halted exports, and undermined constitutional principles. "You are the ones who blatantly and continuously violate the constitution and have stood as an obstacle to passing the Federal Oil and Gas Law for many years," the ministry declared, directly challenging Baghdad's narrative. Oil Smuggling and Export Halt The Kurdish Ministry rejected accusations of oil smuggling, calling them a deflection from corruption and smuggling operations occurring 'in other parts of Iraq,' and accusing federal authorities of 'mixing oil and serving the interests of others instead of serving Iraq and its people.' Contrary to Baghdad's assertions, the KRG stated that it was not responsible for the halt in oil exports. Instead, the ministry pointed to a legal dispute initiated by the Federal Ministry of Oil itself against the Turkish Ministry of Energy, which resulted in the suspension of exports on March 25, 2023—causing what it described as losses 'exceeding $25B.' Although a new agreement to resume exports was reached just days later on April 4, 2023, Kurdish officials say federal budgetary conditions made it financially unfeasible for companies to operate. 'The budget law stipulated a production cost of $6 per barrel, prompting most producing companies to cease production under this restriction,' the ministry said. Despite this, the Region delivered over 11.8 million barrels of oil to a refinery working on behalf of the Ministry of Oil. However, 'not a single dinar was paid' for these quantities, prompting companies to halt further deliveries. Disputed Legal and Constitutional Grounds The Kurdish ministry emphasized that Iraq's ongoing oil disputes stem from the federal government's failure to 'respect' constitutional rights and to enact the long-delayed Federal Oil and Gas Law. While noting that a joint committee was formed at the beginning of the current federal government to draft the law, the ministry cited "noticeable delay and procrastination" by Baghdad, suggesting an absence of political will to resolve the issue. Referring to the Kurdistan Region's own Oil and Gas Law No. 22 of 2007, the ministry defended its contracts with international oil companies, claiming that the legality of these contracts has been implicitly affirmed by global investment. 'Had there been any real legal issue with these contracts, globally reputable companies would not have invested billions of dollars in the Region,' the statement noted. Federalism and Cooperation The ministry also reiterated the Region's commitment to constitutional federalism, emphasizing that it has consistently shown readiness to compromise and cooperate, including by agreeing to sell its oil through SOMO, deposit revenues in the state treasury, appoint a consulting firm, and open an escrow account. 'This renders your Ministry's claims about the futility of previous negotiations with the Region completely baseless,' the ministry stated, citing a 'flexibility and willingness to cooperate' that, it said, Baghdad has failed to reciprocate.
Shafaq News
03-06-2025
- Business
- Shafaq News
PM Al-Sudani, KIU lawmakers discuss budget issues
Shafaq News/ On Tuesday, Iraqi Prime Minister Mohammed Shia Al-Sudani met with members of the Kurdistan Islamic Union (KIU) Parliamentary Bloc. According to a statement from Al-Sudani's media office, the meeting addressed several issues including the government's performance and the financial crisis in the Kurdistan Region. Both sides stressed the need for a resolution to the Region's entitlements based on the Federal Budget Law and the ruling of the Federal Supreme Court. 'The importance of passing the Oil and Gas Law was also emphasized.' The KRG is required under Budget Law to deliver a specified amount of oil to the federal government, transfer part of its non-oil revenues, and share financial data. During the meeting, the KIU members commended the government's efforts in 'service delivery and visible reforms.'
Rudaw Net
09-05-2025
- Business
- Rudaw Net
Oil association urges renewed efforts to resume Kurdish exports
Also in ECONOMY Iraq tells Turkey it needs more time to restart Kurdish oil exports Dana Gas says to begin production at Chamchamal field next year KRG calls for restart of Kurdish oil exports 'as soon as possible' KRG transfers control of digital salary payment program to finance ministry A+ A- ERBIL, Kurdistan Region - Oil producers in the Kurdistan Region on Sunday called for increased efforts to resume the long-halted Kurdish oil exports through the Iraq-Turkey pipeline (ITP). In a statement, the Association of the Petroleum Industry of Kurdistan (APIKUR) said that their latest meeting with the Iraqi government and the Kurdistan Regional Government last week 'did not result in any agreements.' 'The GoI [Government of Iraq] continues to publicly express the importance of oil exports through the ITP but engagements thus far have been limited and unproductive. APIKUR calls for redoubling of efforts to find mutually beneficial solutions,' the statement said. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014. Despite ongoing talks between Erbil, Baghdad, Ankara, and oil producers - with added pressure from the United States - the exports remain stalled, with their suspension costing Iraq billions of dollars in revenue. 'APIKUR member companies have repeatedly proposed solutions that satisfy, both, Iraq's Budget Law and comply with international oil company contracts which have been validated in Iraq's courts,' said APIKUR spokesperson Myles Caggins. 'We regret the lack of progress, nevertheless we will continue to push for a resumption [of] oil exports.' The oil association also lamented that 'no substantial discussions' have taken place with Baghdad and Erbil on their proposals for payment mechanisms, stressing that multiple recommendations have gone unaccepted. 'APIKUR member companies remain ready to immediately resume exports through ITP once binding agreements are in place that ensure payment certainty for such exports in like with each IOC's existing contractual terms,' the statement added. In early April, APIKUR said that their investments have been 'fundamentally harmed' by the closure of the pipeline and that they are in a 'hurry' to resume the oil exports, for which they have been 'at forefront to push negotiations with Baghdad.' In early February, the Iraqi parliament approved amendments to the federal budget law, authorizing a $16-per-barrel fee for production and transport costs in the Kurdistan Region - a move seen as a crucial step toward restarting exports. The amendments also require both the federal government and the KRG to establish an international technical consultancy within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If an agreement cannot be reached, the federal council of ministers will appoint the consultancy.
