Iraq freezes the dues of the Kurdistan region until an oil agreement is reached


An earlier decision obliged the region to transfer its oil to the government in exchange for monthly dues

Iraq freezes the dues of the Kurdistan region until an oil agreement is reached


Baghdad / Ali Jawad / Anatolia

The Iraqi Ministry of Finance announced, on Sunday, to stop funding the Kurdistan region in the north of the country, stipulating the resumption of funding by reaching a final oil agreement between Baghdad and Erbil.

And Friday, a document was issued by the Ministry of Finance, which showed the government paid 400 billion dinars (333 million dollars) in financial dues to the region.

The ministry said in a statement today: “The decision to send salaries came after the approval of the territorial government on the Federal Ministry’s proposal for a final settlement … The amount sent will be the last payment that Baghdad sends to the region, as long as we do not reach a final agreement.”

According to an agreement concluded with the region on May 19, it stipulated that intense meetings would be held between representatives of the central government and the Kurdistan Regional Government, to agree on a final settlement between the two parties by adopting the Federal Financial Management Law.

And the Kurdistan region announced at the beginning of the month, its willingness to hand over 250 thousand barrels of oil per day to the federal government, as well as hand over all financial revenues to the state treasury.

And the previous government headed by Adel Abdul-Mahdi last April stopped paying the region’s monthly salaries of 453 billion Iraqi dinars (380 million dollars), because the region had not delivered its oil to Baghdad.

And 3 delegations from the Kurdistan region have conducted negotiations over the past few weeks with officials in Baghdad, focused on discussing the crisis of salaries of employees of the region to be paid by Baghdad.

And at the end of 2019, the Minister of Oil in the previous government, Thamer Al-Ghadhban, said that an agreement was concluded with the government of Erbil to deliver the region’s oil to the state-owned company “Sumo” as of 2020, at 250,000 barrels per day, out of 450,000 producers, in exchange for understandings that allow a share in the region In the country’s budget.

And last March, Al-Ghadban confirmed that the region had not delivered its oil according to the agreement.

And Iraq, the second largest oil producer in the Organization of Petroleum Exporting Countries (OPEC), with an average daily of 4.5 million barrels per day, according to the organization’s figures for last March.


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