“We welcome the parliament’s vote on the amendment to the federal general budget law and congratulate the parliament and all those who participated in its preparation and approval,” Barzani said in a statement.
He specifically thanked Iraqi Prime Minister Mohammed Shia’ al-Sudani for “having helped and assisted us to resolve issues related to budget, salaries, and financial entitlements of the Kurdistan Region.”
“This is a promising step that will serve the interests of the whole of Iraq, including the Kurdistan Region,” President Barzani affirmed, hoping that it will serve to assist in the resolution of all outstanding issues between Erbil and Baghdad, in particular the issue with salary payments.
The law authorizes compensation to international oil companies (IOCs) operating in the Kurdistan Region for oil production and transportation costs, setting the rate at $16 per barrel, a substantial increase from the $6.90 set in the federal budget that was passed in June 2023.
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 independent oil exports in 2014.
Before the halt, Erbil exported around 400,000 barrels per day through the pipeline, in addition to some 75,000 barrels of Kirkuk’s oil.
On Sunday, Kurdistan Region Prime Minister Masrour Barzani and Iraq’s Sudani both welcomed the passage of the amendment.
The KRG has struggled to pay the salaries of its civil servants on time and in full for a decade due to a financial crisis that further deteriorated after the oil export halt. Erbil is reliant on its local income and federal budget funds.
