Kurdistan Region Prime Minister Nechirvan Barzani, who recently returned from Dubai where he attended a Government Summit, spoke in a wide ranging interview with Rudaw about the visit, an agreement with Baghdad on oil and budget cooperation, the war with ISIS and Erbil’s support for the Kurdish struggle in Syia. Here is the full transcript of his comments:
Rudaw: You were recently in Dubai to attend the Government Summit that discussed the United Arab Emirates’ vision for the next 50 years. What can the Kurds learn from such a summit?
Nechirvan Barzani: We attended the summit at the invitation of the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum. Undoubtedly, for us in the Kurdistan Region it was an opportunity to learn from the experience of these countries. They have had more or less similar experiences to ours in the past and they have progressed in many aspects. Members of my cabinet and I attended the different panels of the summit and I am hoping that we could emulate the positive aspects of their progress in Kurdistan. On the sidelines of the summit we had formal political meetings with UAE officials, including President Sheikh Zayed, Sheikh Mohammed bin Rashid Al Maktoum and the foreign minister, with whom we discussed the current situation of Iraq and the Kurdistan Region. We have old and solid relations between the Kurdistan Region and UAE. We have sizeable trade ties and the UAE is investing in Kurdistan. Trade between Kurdistan and UAE were part of our discussions with them.
Rudaw: What new things did you hear from the UAE officials, especially after their government spokesman said that the Kurdistan Region is of importance to the UAE?
I felt that the UAE is willing to assist the Kurdistan Region in every aspect and they are greatly invested in the Kurdistan Region. 
Nechirvan Barzani: There is genuine will in the UAE to assist us, some directly and some through Baghdad. I felt that the UAE is willing to assist the Kurdistan Region in every aspect and they are greatly invested in the Kurdistan Region.
Rudaw: At the summit, UAE officials spoke of plans for the next 50 years and said that within a few years they would want only 6 percent of their economy reliant on oil. Is there something the Kurdistan Region can learn from this vision?
Nechirvan Barzani: The Kurdistan Region does not have a history of industry and we started such a vision only very recently. And indeed, relying fully on oil is a dangerous thing. It is important to use the oil to build other economic infrastructure, because with the small budget that comes from Baghdad or elsewhere you cannot expect to solve all the problems of a destroyed country. Therefore, it is essential to use oil revenues to build a kind of economy that will not rely on oil. The UAE, which launched this kind of policy, also used to fully rely on oil. But now, for them it is only 30-40 percent on oil and the rest counts on trade, services, tourism. This could be a model which we can use too in the future. But we are only in the beginning and we have just started building our oil industry and infrastructure.
Rudaw: Why do Arab and Gulf countries attach such importance to the Kurdistan Region?
Nechirvan Barzani: They would like to treat all of Iraq the same way, but in the meantime they are aware that in the past years Kurdistan has been a factor of stability in the region. They very well understand that since 2003 the Kurdistan Region has tried rationally and calmly to create stability in Iraq and the region and it is on this basis that they want to maintain good relations with Kurdistan. It is in the meantime in the Kurdistan Region’s interest to have good relations with these countries.
Rudaw: Why does the Kurdistan Region not have official representation in the UAE?
Nechirvan Barzani: We have certainly been negligent as the Kurdistan Regional Government in that regard, and most of the KRG affairs in the UAE are conducted through the private sector. But we will take this issue into account and we will appoint a trade attaché in the UAE.
Rudaw: For its budget the Kurdistan Region relies on oil and the share that comes from Baghdad, and there seems to be some hurdles in the Erbil-Baghdad agreement. What exactly are the issues and why is the money not coming from Baghdad?
Nechirvan Barzani: I believe that there are no serious issues between us and Baghdad, and that Baghdad is only trying to create problems. Let me tell you this: we went to Baghdad, signed an agreement with them and after our return we continued to give them 150,00 barrels of oil per day and until the end of 2014 we remained committed to that agreement. In the beginning of 2015 our agreement with Baghdad was that we would receive 300,000 barrels of oil from them and plus 250,000 barrels of Kurdish oil, to export 550,000 barrels that we would transport hand over at the Ceyhan port, and thus contribute to Iraq’s budget. But in the first two weeks they began to say that we had not done our part of the agreement. We tell them that they cannot do the counting on a daily basis and that they should look at the total to see if we have remained loyal to the commitment or not. We may export 100,000 barrels one day and 250,000 another day. It is only a technical issue and nothing political. But unfortunately they do not take this into account and keep saying that the Kurdistan Region does not play its part in Iraq’s budget. But I told them frankly in Baghdad that we can only do what we have agreed on. At the end of 2014 we borrowed a lot of money from private companies in order to pay the salaries of our civil servants and we are now obliged to pay back that loan. We have no other choice.
They very well understand that since 2003 the Kurdistan Region has tried rationally and calmly to create stability in Iraq and the region and it is on this basis that they want to maintain good relations with Kurdistan.
Rudaw: But the KRG is able to export 400,000 barrels of oil per day.
Nechirvan Barzani: Yes, it is.
Rudaw: Then why not give Baghdad its share of 250,000 and end their complaints?
Nechirvan Barzani: When Adel Abdul-Mehdi (Iraq’s oil minister) came to Erbil we gave them an annual export schedule and it showed by the end of the year that we were committed to the agreement of 550,000 barrels per day. But the truth is that Iraq has no money these days. Iraq lives in severe financial crisis.
Rudaw: What has happened to Iraq’s money?
Nechirvan Barzani: Nobody knows where it has gone. They themselves should know where it has gone. By the end of 2013 Iraq had around $18 billion in the Development Finance Institution (DFI), but now it doesn’t even have $1 billion, and the fall in oil prices has worsened the crisis. I suggested to Baghdad that if they have trust issues with the KRG, then we should do our accounting every three months and see if we are committed or not. But from the first day and first week they began to say that we hadn’t done this or that and therefore they will not send our budget. I sincerely believe that economically this makes no sense at all.
Rudaw: Did you send this suggestion to Baghdad?
Nechirvan Barzani: Yes, we did through Dr. Roj Shawais.
Rudaw: What was Baghdad’s response?
Nechirvan Barzani: I will visit Baghdad myself. The KRG is committed to this agreement with Baghdad and we want it to work. This agreement is in the best interest of Baghdad and the Kurdistan Region and all of our efforts will be to ensure it is implemented. A major part of our talks with Prime Minister Haider al-Abadi will be on this very issue.
Rudaw: It is said that all the visits to Baghdad show the KRG’s weak position, and that is why Abadi doesn’t bother to visit Erbil. Are you visiting Baghdad out of desperation?
Nechirvan Barzani: It does not really matter who visits who. What is important is for things to get done. He is the prime minister of Iraq too. To me personally, it is not important who visits who.
Rudaw: Is it important to you that Kurdistan’s budget should come on time?
Nechirvan Barzani: Yes, it is important that all the issues are resolved, the budget gets here and we get out of the situation we are in. We are ready to visit Baghdad every single day.
Rudaw: It is said that the KRG has borrowed $17 billion. Is that not a big risk to the Kurdistan Region?
Nechirvan Barzani: No, it is not to that extent. Baghdad owes the KRG 16 trillion Iraqi Dinars that was supposed to have been paid by the end of 2014, which did not happen. So to pay our civil servants’ salaries we had to borrow money. How did we do this? We have given the companies guarantees that we will pay them back in oil and now we give the remainder of our oil to these companies in order to honor our agreement with them.
Rudaw: Oil prices have slightly risen in recent days. Would this have any impact on the Erbil-Baghdad agreement?
Nechirvan Barzani: Iraq’s budget relies 95 percent on oil and, therefore, without any doubt the rise or fall in oil prices would have a big effect, especially on Iraq. Iraq hasn’t been able to extricate itself from this reality and wouldn’t be able to do so in a year or two or even 10 years. It requires long-term planning and Iraq doesn’t have any such plans. This was neither done during the former regime, nor was there a chance after regime change for Iraq to draw some strategic plans. The change in oil prices would affect any country, including Russia and Iran. Those countries have learned to cope with and adapt to falling oil prices, but a country like Iraq benefits and loses a great deal from any change to oil prices.
I suggested to Baghdad that if they have trust issues with the KRG, then we should do our accounting every three months and see if we are committed or not.
Rudaw: Let’s switch to the topic of the Islamic State (ISIS). How dangerous is ISIS to the Kurdistan Region still?
Nechirvan Barzani: At the start the ISIS war was a big shock to the Kurdistan Region. In the beginning all political parties in the Kurdistan Region agreed that we should not be embroiled in the ISIS war and that is the policy we pursued until the minute ISIS attacked the Kurdistan Region. But that policy is over and you see today that on all fronts the Peshmerga, police, security and volunteer forces are fully engaged in the war and they have the initiative. If it weren’t for their bravery and resistance the situation in the Kurdistan Region would have been different today. Their loyalty and bravery put a halt to ISIS, but ISIS is constantly looking to find any weak points whence it may attack the Peshmerga forces. What ISIS can do today is inflict harm. They can no longer attack and occupy a place. I believe that the only force that could stand up to ISIS on the ground and deal it a heavy blow was the Peshmerga. You have been to the frontlines yourself and seen how much the Peshmerga have achieved. These are vast territories -- Shingal, Makhmour, Gwer, Jalawla, Kirkuk.
Rudaw: French President Francios Hollande received two female commanders of the Peoples Protection Units (YPG) in Paris. What is your position on a powerful country like France receiving a Kurdish force from Rojava?
Nechirvan Barzani: We are very pleased when any Kurdish force is welcomed that way and we support the Kurdish struggle in Syria. Our only word to them is: be united and stay together and let others work with you. There is some misconception here, especially towards the Kurdistan Democratic Party, which I should like to clarify: it is said that the KDP is against those forces, but on the contrary, when Kobane was under attack we all worked together and the Kurdistan Region president did his best to convince the Americans and Turkey to allow our forces to go and help Kobane, which we did. Today, our policy and sentiment remains the same. Our position as the government, as KDP and all other Kurdish parties is absolute support for the struggle of the Kurdish forces in Rojava. We are pleased by and support any of their political moves and military success.
