Document .. Federal Oil announces that it will “take over” the management of the export of crude from the Kurdistan Region

politicsKurdistan Regionpetrol Ministrybreakingoil deal

 2022-05-19 15:23A-AA+

A document obtained by Shafak News Agency revealed, on Thursday, that the Federal Oil Ministry will manage the crude export file from Kurdistan Region, based on the decision of the Federal Supreme Court, “after matters reached a dead end in this regard.”

According to the document directed by the Minister of Oil, Ihsan Abdul-Jabbar, to the General Authority for Monitoring the Allocation of Federal Imports, his ministry has addressed the regional government to nominate authorized representatives of the competent authorities to implement the Federal Court’s decision regarding the export of Kurdistan’s oil, and they have not been named so far, and that  his ministry’s attempts to establish a rational administrative system It ensures the optimal investment of state resources and achieves the interests of all parties in accordance with the aforementioned Federal Supreme Court decision, which gives space for the region to manage its resources through federal institutions with expanded powers, which did not achieve the desired results, as the regional government stated its opinion in this regard, and considered the court’s decision unconstitutional, unacceptable and totally rejected. In detail.”

He added, “Our ministry has proceeded with a set of measures in accordance with its federal responsibilities in managing the country’s overall oil activity to achieve the desired goal of maximizing the national return and achieving integration in managing the energy file and in line with the provisions of the court’s decision above.”

The Federal Supreme Court had declared last February 15 that the oil and gas law of the Kurdistan Regional Government was unconstitutional and abolished, and obligating the regional government to hand over the entire oil production from the oil fields in the region and other areas from which the Ministry of Natural Resources in the Government of Kurdistan extracted oil and handed it over to the federal government, represented Federal Ministry of Oil.

The Kurdistan Region described the decision as “unconstitutional” and was based on a law dating back to the time of the previous regime, and the regional government stressed that “such an unconstitutional decision cannot be accepted.”

And the Kurdistan Region began to sell its oil in isolation from the federal government, after a stifling financial crisis as a result of the collapse of oil prices during the ISIS invasion of areas in Iraq, in addition to the disputes with Baghdad that prompted the latter to stop paying the salaries of the region’s employees.

Baghdad says its national oil company, SOMO, is the only one authorized to sell Iraqi crude oil, but each side claims the constitution is on its side. Since the Iraqi oil and gas law remained imprisoned in the drafting stage due to differences, there was room for maneuver.

The oil file is one of the most prominent outstanding issues between Baghdad and Erbil.

Baghdad used to pay 453 billion Iraqi dinars per month (about $380 million) as salaries to the employees of the Kurdistan Region, but it stopped them after the region conducted the independence referendum on its part, and because of what Baghdad said that the region was not committed to handing over its oil according to the terms of the federal budget.

After several rounds of political negotiations, the region was obligated, according to an agreement with the government in Baghdad, to hand over 250 thousand crude barrels per day of crude oil produced from its fields to the state-owned company SOMO, and hand over the revenues to the federal public treasury.


IMF Staff Concludes Staff Visit to Iraq

May 19, 2022

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

  • The economy is recovering well amid high oil prices, with real GDP projected to reach its pre-pandemic level this year. 
  • Cushioning the impact of surging food prices on the most vulnerable is the most urgent priority. 
  • Using the current favorable oil market conditions to accelerate structural reforms and advance socio-economic priorities will be key to strengthen Iraq’s medium-term economic resilience.

Washington, DC: An International Monetary Fund (IMF) mission, led by Tokhir Mirzoev, visited to Amman, Jordan, during May 14-18, 2022, to discuss with the Iraqi authorities recent economic developments, the impact of global events on the economic outlook, and the country’s policy priorities. At the conclusion of the visit, Mr. Mirzoev issued the following statement:

“The economic recovery is well underway. In 2021, buoyed by the resumption of activity, a more accommodative fiscal stance, and stimulus measures by the central bank, real non-oil GDP rebounded by an estimated 20 percent and is poised to expand by around 5 percent this year. Oil output is projected to reach its pre-pandemic level and bring overall real GDP growth to 10 percent in 2022. The war in Ukraine is affecting Iraq mainly through its global impact on commodity prices. In 2022, soaring oil revenues will more than offset the increased food and energy import bills. As a result, the fiscal and current account balances are projected to post double-digit surpluses in percent of GDP. Nonetheless, headline inflation is expected to climb to 6.9 percent, up from 6 percent last year, driven in part by higher food prices, which are adversely affecting the poorest segments of the population.

“Cushioning the impact of surging food prices on the most vulnerable is thus the most urgent priority. With fiscal policy paralyzed by the absence of the 2022 budget—which limits current fiscal expenditures to last year’s level—strengthening spending efficiency, maintaining tight control over public hiring, and reprioritizing expenditures within the overall budget cap will be essential to enable boosting targeted cash transfers to the most vulnerable and containing the poverty impact of the rising cost of living.

“In an environment of high oil prices and against the background of elevated global risks and uncertainty, the focus of macroeconomic policies needs to shift toward consolidating economic stability and strengthening Iraq’s long-term economic resilience. In the short run, maintaining fiscal discipline and tapering the central bank’s lending support to the real estate sector will help avoid adding to inflationary pressures. In addition, despite large reconstruction and other investment needs, limited near-term absorptive capacity, fiscal vulnerability to oil price volatility, and the challenges of the global energy transition call for building buffers for the future by saving a portion of oil revenues via a carefully designed sovereign wealth fund.

“The current favorable oil market conditions also provide an opportunity to accelerate structural reforms envisaged in the authorities’ “White Paper.” Strengthening the quality of public services and creating the fiscal space for much-needed investments and the social safety net require a civil service reform, reducing inefficient energy subsidies, diversifying fiscal revenues, and strengthening governance. Fixing the electricity sector will be crucial to reduce fiscal costs and enable private sector productivity. Improving the coverage and targeting of social assistance will help better protect the most vulnerable. Enhancing governance in large state-owned banks and completing their audits and restructuring will facilitate access to finance and job creation by the private sector.

“The mission welcomes the authorities’ increased attention to the challenges of climate change and the release of Iraq’s first Nationally Determined Contribution document last year. In the coming months, the mission encourages prioritizing the preparation of national climate adaptation and mitigation plans, development of green financing, and full integration of climate-related priorities into the macroeconomic policy framework. The IMF stands ready to support Iraq in these endeavors.

“The IMF staff team would like to thank the authorities for candid and productive discussions and looks forward to continuing close cooperation with Iraq in the period ahead.”





Saleh determines the average revenue for 2022 and the expected reserve

money and business


Economy News-Baghdad

Today, Thursday, Adviser to the Prime Minister, Mazhar Muhammad Salih, determined the average oil revenues for the current world 2022, while he expected the financial reserve to reach 40 billion dollars in the event that the current fiscal year ends without enacting a budget law.

Saleh told the Iraqi News Agency, “It is not possible to pass any law by the government before the executive authority completes its constitutional entity according to the results of the 10-10-2021 elections.”

He added, “The recent Federal Court decision cut off the way even for the House of Representatives itself in discussing any bill unless it is passed in accordance with the constitutional contexts, and from a government that is produced by the election results.”

He pointed out that “the caretaker government will work hard to support Iraq’s food security through what is available to it of financial actions determined by the current Financial Management Law No. 6 of 2019, the amended, until the legislation of the Federal General Budget Law for the year 2022 in accordance with the constitutional paths that do not conflict with the court’s decision. Federal.

Saleh added that “the annual government spending in the general budget constitutes nearly half of the gross domestic product, which means that economic activity depends in its greatest weight on government spending.”

And he indicated that “the most important thing in total government spending is the investment part of the spending that drives the demand for productive market resources, specifically the labor market and human skills, which at the same time increases the growth of national income through mechanisms called (the economic accelerator).”

He pointed out that “important investment accelerators are linked to the budget law for the year 2022, through the new investment spending doors and new investment programs, and not by spending 1/12 of the actual current expenditures in 2021, which are mostly related to limited operational spending affecting the growth of GDP. “.

And he indicated that “average oil revenues for the year 2022 will increase by no less than 60% of oil export revenues for the year 2021, which means that there will be a large financial reserve available to the state at the end of the year that may exceed 40 billion dollars in the event that the current fiscal year ends without enacting a budget law and restricting it.” Exchange within the scope of the law.

The House of Representatives sets three days for the committees’ meeting and raises its session to next Wednesday

political| 05:19 – 19/05/2022


Baghdad – Mawazine News
: The House of Representatives decided, on Thursday, to adjourn its session to next Wednesday.
The first deputy speaker of the council, Hakim Al-Zamili, said during today’s session, that “on Sundays, Mondays and Tuesdays, there will be committee meetings.”
He added, “The next parliament session will be on Wednesday of next week.” Ended 29 / h

Al-Rasheed Bank announces the removal of its name from the list of international sanctions of the Charter of the United Nations



Economy News – Baghdad

Al-Rasheed Bank announced, on Wednesday, the removal of its name from the list of international sanctions of the United Nations Charter, which came according to the document issued on April 18, 2022.

The bank’s media office said in a statement, “This decision came due to the efforts made by the Iraqi government, the Ministry of Foreign Affairs, the Permanent Representative of the Republic of Iraq to the United Nations and Al-Rasheed Bank.”

He stressed, “This decision has restored Al-Rasheed Bank to its rightful place in the banking field.”

Iraq achieves a financial surplus of more than 11.4 trillion dinars in the first quarter of 2022

money and business


Economy News-Baghdad

The Ministry of Finance revealed that the percentage of non-oil revenues did not exceed 4% of the total revenues during the first quarter of 2022.

A report on the ministry, seen by “Al-Iqtisad News”, stated that “the total oil revenues amounted to 33.3 trillion dinars, while the total non-oil revenues amounted to 1.5 trillion.”

The total oil and non-oil revenues amounted to “34.9 trillion dinars until March of 2022.”

The report indicated that “the percentage of oil revenues out of the total revenues amounted to 96%, compared to 4% the percentage of non-oil revenues.”

According to these data, Iraq achieved a financial surplus of 11.41 trillion dinars during the first 3 months of 2022.

Economists expect Iraq’s oil revenues to exceed 100 billion dinars by the end of this year, thanks to the rise in global oil prices.

He added 2 trillion dinars.. The Central Bank of Iraq increases its capital to (5) trillion dinars

economybreakingCentral Bank of Iraqcapital

 2022-05-19 05:46A-AA+

Shafaq News/ The Board of Directors of the Central Bank of Iraq decided on Thursday to increase its capital by 2 trillion Iraqi dinars.

A statement by the Central Bank was received by Shafak News Agency; It was decided to “increase the capital of the Central Bank of Iraq from (3) trillion dinars to (5) trillion dinars.”

The bank explained; “This increase comes to enhance the results of its balanced policies with a conservative investment management, and to emphasize the importance of the bank’s capital and its reflection on its financial position.”

And he indicated that “the capital of central banks and their financial centers reflect the sobriety of these institutions, the solidity of their assets, and the extent of their ability to support the banking sector and the sector.”

He pointed out that “the increase is by using part of the profits achieved by the Central Bank in 2021.”