ECONOMY
David Tafuri, head of the US-Kurdistan Business Council, speaking to Rudaw on November 20, 2024. Photo: Screengrab/Rudaw
ERBIL, Kurdistan Region - American businesses are interested in expanding investments in the Kurdistan Region, the head of the US-Kurdistan Business Council said on Wednesday, stressing that Washington is keen on advancing negotiations between Erbil and Baghdad to resume oil exports and attract investment.
“We do a delegation with American companies that are investing in the Kurdistan Region of Iraq every year,” David Tafuri, head of the council, and a foreign policy analyst, told Rudaw’s Mohammed Sheikh Fatih during a televised interview.
“We talked about what are the opportunities for American companies to support the economy here in the Kurdistan Region,” he added.
Tafuri highlighted that the US has companies across various sectors, including Oil and gas, energy, defense and security, hospitality, and technology sectors, adding that “the companies are interested in increasing their investments [in the Kurdistan Region].”
The US analyst noted that the Kurdistan Region's oil export halt has an effect on US businesses across all sectors due to the Region's reliance on oil revenues.
Tafuri said that the export halt is “an area of concern and interest for the energy companies … It is an issue for all of the American companies, even if the companies are not in the oil and gas sector, they recognize a lot of the revenues of the Kurdistan Region depend on export of oil.”
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a ruling by a Paris-based arbitration court ruled in favor of Baghdad over Ankara, saying the latter had breached a 1973 pipeline agreement by allowing Erbil to export oil independently since 2014.
Earlier this month, the Iraqi government approved a proposal to amend articles from the federal budget to authorize compensation to companies operating in the Kurdistan Region for oil production and transportation costs, setting the rate at $16 per barrel. The proposal - yet to be finalized by parliament - aims to resume oil exports from the Region.
Taufir said they met with local officials and the US consulate in Erbil about “what can the US government do to support the Kurdistan Region and to pressure Baghdad to make a decision in these negotiations, a decision that is in the interest… of the people all over Iraq,” to contribute to the federal and regional government revenues.
“The US government is keenly interested in this. They are also in discussion with Baghdad. They are putting pressure on Baghdad,” Tafuri said, revealing that “there are some details for a compromise around a certain oil price that could hopefully result in Baghdad agreeing to reopen the pipeline.
“We are hopeful that will happen,” he said.
On Thursday, Iraqi Foreign Minister Fuad Hussein said that the Kurdistan Region’s long-suspended oil exports could be resumed later this year if the Iraqi parliament passes an amendment proposed by the federal government.
Tafuri said they are interested in exploring new opportunities in various sectors for investment and exploring ways to “support the Peshmerga.”
On Monday, Sirwan Barzani, the Makhmour front commander of Peshmerga forces, expressed gratitude to Spirit of America, a US non-governmental organization for providing surveillance cameras to Peshmerga forces to enhance security, emphasizing the need for continued American assistance as the Islamic State (ISIS) remains a persistent threat.
Tafuri said during their meetings at Erbil's Chamber of Commerce they had “one-on-one” meetings between the US and Kurdish companies, discussing a number of “potential deals,” without elaborating on the details of the deals.
On whether the new US administration will be supportive of the Kurdistan Region, Tafuri said he anticipates that US President-elect Donald Trump will be supportive of maintaining good relations with Erbil, taking into consideration the policies of his previous administration from 2016 to 2020.
“His previous administration was supportive of the Kurdistan Region and his administration generally is supportive of American businesses… so I expect that good relationship between the United States and the Kurdistan Region to continue,” noting that factors in the region will play a role.
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