ERBIL, Kurdistan Region - The government and president of the Kurdistan Region on Wednesday slammed a decision by Iraq’s top court deeming Baghdad’s payment of the Region’s financial entitlements as illegal.
“The court’s new stance, emphasizes on an unjust policy and antagonism against the Kurdistan Region,” read a statement from the Kurdistan Regional Government (KRG).
The KRG added that while both Erbil and Baghdad were on the verge of reaching an agreement on the basis of the constitution, the federal court made the decision to prevent Baghdad from sending the Kurdistan Region money.
“This court has not been formed constitutionally and cannot make decisions as a federal court, therefore we reject its decisions and call on the federal government to not act on this decision and abide by the promises made to send the financial entitlements of the Kurdistan Region,” the statement read.
Upon a complaint made by the governor of Wasit province, Mohammed Mayahi, and an independent member of the Iraqi parliament, Mustafa Sand, the Iraqi Federal Supreme Court on Wednesday ruled against the payment of the Kurdistan Region’s financial entitlements by Baghdad, claiming it violates the 2021 Iraqi Budget Law.
The law was passed in 2021 after months of contention over the Kurdistan Region’s share of the federal budget.
Unable to reach a final agreement over the Kurdistan Region’s share of the budget and independent oil sales at the time, an agreement was made between both governments, where Baghdad would send 200 billion dinars ($125 million) monthly to the Kurdistan Region.
The newly-formed Iraqi cabinet, headed by Mohammed Shia’ al-Sudani, recently approved the payment of 400 billion dinars ($250 million) to the Region for the months of November and December the last year, however the federal court decision forbids that from happening.
The court’s decision was also slammed by the President of the Kurdistan Region Nechirvan Barzani, calling the decision “unjust and tyrannical”.
“This decision does not only target employees and people of Kurdistan who are Iraqi citizens, but also targets the entire process, political stability, and the agreement on which the new Iraqi federal government has been formed,” Barzani said.
The budget has been a point of contention between Erbil and Baghdad for several years, especially after the Kurdistan Region's decision to sell its oil through Turkey, and the emergence of the Islamic State (ISIS) in Iraq in 2014.
Almost two years after Iraq passed its last budget law, Erbil and Baghdad remain in disagreement over several different issues.
Tensions have been high between the two governments since another Iraqi Federal Supreme Court ruling in February challenging the legality of the Kurdistan Region’s oil and gas law, deeming it “unconstitutional.”
The court ruling at the time struck down the independence of the Region’s energy sector, jeopardizing its industry.
The decision has been repeatedly challenged and widely condemned by Kurdish authorities.
Kurdish government delegations have travelled to Baghdad on several occasions to reach a common ground with the Iraqi government, however none of the visits have had a solid outcome.
