Rahim al-Aboudi, a senior figure in the Hikmah Movement - a key component of the Coordination Framework led by Shiite cleric Ammar al-Hakim - said the delegation's visit “will be crucial in terms of reassuring the [Kurdistan] Region that the federal government will not proceed with decisions that will lead to a sour atmosphere.”
Tensions between Baghdad and Erbil flared last week after the Iraqi finance ministry on Wednesday the suspension of all budget transfers to the KRG, including salary payments for over one million civil servants.
In a letter she sent to the KRG, Iraqi Finance Minister Taif Sami claimed that Erbil had exceeded its 12.67 percent budget allocation for 2025 by 13.547 trillion Iraqi dinars (approximately $10.34 billion). She argued that, under rulings from the Federal Supreme Court, further payments to the KRG under such circumstances are legally prohibited.
The move was swiftly condemned by Kurdish political factions, who held a meeting on Saturday, chaired by the ruling Kurdistan Democratic Party (KDP), and denounced the funding suspension as a politically motivated action that undermines the constitutional and legal status of the Kurdistan Region.
Aboudi stated that the Coordination Framework’s visit aims to “defuse crises related to salaries and other outstanding issues” between Baghdad and Erbil.
“The Coordination Framework is determined to present a package of solutions to address technical, financial, and oversight-related problems, and to move forward with this package in order to sustain the relationship and unify political, economic, and security decision-making,” he said.
The Iraqi finance ministry’s decision to halt budget transfers to the Kurdistan Region came shortly after the KRG signed contracts with US-based energy companies HKN Energy and WesternZagros, valued at a combined $110 billion over their lifetimes.
The Iraqi oil ministry quickly rejected the agreements, calling them “a clear violation of Iraqi law” and insisting that all oil investment must be conducted through the federal government. The KRG defended the deals, stating they are based on pre-existing contracts.
Of note, a senior source at the Iraqi oil ministry, speaking on condition of anonymity, told Rudaw English on Thursday that Erbil and Baghdad “are currently engaging in serious talks to resolve this dispute, which will be and must be resolved.”
Aboudi remarked that the oil ministry views the new agreements as “outside the Region’s authorized scope,” emphasizing the importance of open dialogue to clarify the legal and contractual basis of the deals.
“Natural resources are a unified asset and cannot be divided,” he said, adding that “as stated by the Federal Supreme Court, their management lies with the federal government.”
However, Aboudi stressed that oil-related disagreements should not affect the livelihoods of civil servants. “The issue of salaries should not be entirely tied to oil exports, nor should political circumstances dictate salary payments. Rights must be ensured without complications,” he added.
Iraqi President Abdul Latif Rashid and Prime Minister Mohammed Shia’ al-Sudani met on Saturday to discuss the escalating tensions between Erbil and Baghdad.
Both leaders “emphasized the need to establish comprehensive solutions-within the framework of the Constitution and the law-for addressing financial obligations between the federal government and the Kurdistan Regional Government,” read a statement from Sudani’s official.
Aboudi remarked that Sudani “fully understands the economic pressures faced by both the federal and regional governments.” He added that Sudani “has ready solutions and a clear understanding of the situation.”
“There must be compromises from both sides,” Aboudi concluded.
“The discourse should not be tense, and dialogue must be pursued. With goodwill and mutual trust, negotiations will be fruitful.”