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KRG should send 250,000 bpd to Baghdad, if certain conditions met: Parliament Speaker

So far, Region has failed to comply with budget law
Speaker of the Kurdistan Parliament Rewaz Fayaq (File)
2019-08-22

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SULAIMANI — Speaker of the Kurdistan Parliament Rewaz Fayaq said on Thursday (August 22) that she agreed that the Kurdistan Regional Government (KRG) should submit 250,000 barrels of oil per day (bpd) to Baghdad.

According to the 2019 Federal Budget Law passed in January, the KRG is required transfer that amount of oil to Baghdad for export in exchange for its share of federal funding, but has not complied with the law so far.

As a consequence, Baghdad only sends a portion of the Region’s share, enough to pay public sector and Peshmerga salaries, as it is required to under the budget deal.

In recent weeks, KRG officials have complained about the cuts, but have not taken steps in turn to comply with the law. In earlier statements, the KRG has said that it has preexisting obligations to fulfil and transfers will likely not begin until next year.

During a meeting with new UK Consul-General in Erbil James Thornton, Fayaq said that she supports “the idea that the Kurdistan Regional Government should hand over 250,000 barrels per day to the federal government,” but with the terms that Iraq should send the Region’s budget share, as well as repay the KRG’s debts to foreign oil companies.

“I support the Kurdistan Regional Government for the steps it has taken to resolve the problems with the federal government. Solutions should come through dialogue and within the framework of the constitution,” she added.

The parliament speaker emphasized that the cabinet and the Parliament should cooperate to pursue comprehensive reform in all sectors, including in banking.

(NRT Digital Media)