PM Sudani discusses Erbil-Baghdad issues with EU, UN ambassadors

ERBIL, Kurdistan Region - Iraqi Prime Minister Mohammed Shia’ al-Sudani on Wednesday met with ambassadors from the European Union and the United Nations Security Council, discussing issues between Baghdad and Erbil as tensions between the two governments remain high.

In a statement, Sudani’s office said that the ambassadors “supported the Iraqi government’s policy in addressing internal challenges and resolving administrative matters between the federal government and the Kurdistan Regional Government (KRG).”

Tensions between Baghdad and Erbil have escalated in recent weeks after the federal government halted budget transfers to the KRG. The Iraqi oil ministry accused Erbil of exceeding its 12.67 percent share of the 2025 federal budget by more than 13.5 trillion Iraqi dinars (approximately $10.34 billion), citing rulings from Iraq’s Federal Supreme Court, which prohibit further disbursements under such conditions.

The decision has left over 1.2 million public sector employees in the Kurdistan Region without pay, drawing sharp criticism from Kurdish parties who say the move is politically motivated and unjustified.

On Wednesday, Iraq’s former Deputy Finance Minister Rebaz Hamlan - who resigned in March over salary delays - said the United States is pressuring Baghdad to resolve the ongoing budget dispute with Erbil.

A day prior, the UN special representative for Iraq, Mohamed al-Hassan, also called for dialogue between the two sides to resolve the issue.

In the meeting with ambassadors, Sudani “emphasized the importance of strengthening partnerships between Iraq and its friendly countries, particularly the European Union and the permanent members of the Security Council,” according to the statement.

Sudani also referenced the recent Arab League Summit hosted in Baghdad, describing it as having “produced positive outcomes, decisions, and initiatives that contribute to advancing development and fostering stronger relations among Arab nations.”

The ambassadors, moreover, praised Iraq’s regional and international role and commended its efforts in hosting the summit, saying it contributed to strengthening economic relations, according to the statement.

In May, Iraq hosted the Arab League summit for the first time in over a decade, with discussions focusing on the war in Gaza and other regional developments, including the situation in Syria after the fall of Bashar al-Assad’s regime. During the summit, Sudani pledged $20 million for the reconstruction of both Gaza and Lebanon.

PM Sudani discusses Erbil-Baghdad issues with EU, UN ambassadors

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