“There is an understanding and today the [KRG] salaries will be dispersed," said Fuad Hussein, who is also Iraq’s foreign minister.
Ikhlas al-Dulaimi, deputy head of the finance committee in the federal parliament, told Rudaw that “today there will be good news regarding the salaries of Kurdistan Region’s civil servants.”
Public employees in the Kurdistan Region have gone nearly three months without pay, while their federal counterparts have received their salaries on time. Kurdish officials have accused Baghdad of politicizing the issue, whereas Iraqi authorities claim the KRG has failed to meet its financial obligations as outlined in the constitution.
Following meetings with federal officials and commanders from the US-led global coalition against the Islamic State (ISIS) in Baghdad on Monday, the Kurdish Peshmerga minister warned that the Peshmerga forces are facing a dire financial situation.
“The salary recipients of the Kurdistan Region, especially the Kurdistan Peshmerga forces, are in a difficult financial situation, but with high Kurdistani will and determination, they steadfastly continue to protect the peace and security of the Kurdistan Region and the area,” Shoresh Ismail was cited as saying by in a ministry statement.
On Thursday, the KRG and the federal government finalized an agreement aimed at resolving their disputes over finances and Kurdish oil exports. However, officials from both sides continue to accuse each other of creating obstacles to its implementation.
“We hope that the understanding between the Kurdistan Regional Government and the central government will be implemented as soon as possible and that the salaries of employees and Peshmerga will be sent quickly,” Ismail added.
Kurdistan Region Prime Minister Masrour Barzani on Thursday accused Baghdad of adding a last-minute condition to the agreement they had already signed.
“After we agreed to the agreement and negotiated on the proposals… they added another point,” Barzani said during a speech in Erbil. He added that Baghdad now requires the Region to deliver 230,000 barrels of oil per day before releasing salary payments.
Barzani’s remarks came just days after Iraq’s Council of Ministers approved the new deal with the KRG to resume salary payments and restart Kurdish oil exports. Under the agreement, the KRG must export its entire oil output through Iraq’s State Oil Marketing Organization (SOMO), keeping 50,000 barrels daily for local use. In return, Baghdad is expected to make budget transfers and provide refined fuel if needed. The KRG is also obligated to hand over 120 billion Iraqi dinars (nearly $92 million) in non-oil revenues monthly for May.
“Until the 230,000 barrels are received, salaries will not be paid,” Barzani said, criticizing the move as unfair given repeated drone attacks that have disrupted oil production. “On the other hand, those terrorists come and blow up our fields and don't allow oil production, so how can this work?”
Since the deal was announced, drone attacks on the Kurdistan Region appear to have ceased. Nearly 20 drone attacks were recorded in July, most targeting oil fields operated by international companies.
