“The Kurdistan Region has implemented and exceeded any commitment imposed upon it, showing all flexibility for resuming oil exports, therefore, we expect Baghdad to end its policy of not sending salaries,” the Kurdistan Regional Government (KRG) said in a statement.
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023, following a ruling by a Paris arbitration court that found Turkey had violated a 1973 pipeline agreement by allowing Erbil to export oil without Baghdad’s approval.
In February, Iraq’s parliament amended the federal budget law to include a $16-per-barrel fee to cover production and transportation costs for international oil companies (IOCs) operating in the Kurdistan Region. The amendment also requires Baghdad and Erbil to jointly appoint an international consultancy to audit and assess these costs. If no consensus is reached, the Iraqi cabinet will choose the firm.
“The Kurdistan Region and oil companies have shown full readiness to cooperate with the federal government for resuming oil exports, all in order to cut all of Baghdad’s excuses and pretexts for withholding salaries to Kurdistan’s employees,” the statement said.
The Council of Ministers also stressed that Erbil is ready to resume oil exports through Iraq’s State Oil Marketing Organization (SOMO) “and to return the Kurdistan Region’s oil sales revenue to the federal finance ministry.”
Tensions between Erbil and Baghdad intensified in late May when the federal finance ministry suspended all budget transfers to the KRG, including the salaries of more than 1.2 million public employees. The ministry cited the KRG's alleged overspending beyond its 12.67 percent share of the 2025 federal budget.
Kurdish political parties have strongly condemned the suspension, describing it as unconstitutional and politically driven.
“Baghdad must end its policy of not sending salaries to the people of Kurdistan, as salaries are a normal, legal, and constitutional right of the Region’s employees, and according to all laws and regulations, they should not be deprived of this right under any pretext,” the KRG stated.
Washington is also pushing for the resumption of oil exports. On Tuesday, a State Department spokesperson told Rudaw that restarting the exports “is critical,” adding, “This is unacceptable. We have repeatedly urged all parties to resolve their issues and will not accept an indefinite delay.”
