KRG Deposits Funds as Salary Payments Hinge on Oil Deal
KRG deposited 120bn dinars in non-oil revenue to Baghdad ahead of a key meeting. An MP says the release of salaries for May, June, and July depends on the resumption of the Region's oil exports.
By Kamaran Aziz
ERBIL (Kurdistan24) – The Kurdistan Regional Government has deposited its May non-oil revenue into the federal treasury, a significant step ahead of a crucial meeting in Baghdad today where the release of three months of public sector salaries now hinges on a final agreement to resume the Region’s oil exports.
The KRG's Ministry of Finance and Economy announced the transfer in a statement on Tuesday, confirming that the federal government's share of the Region's non-oil revenue had been delivered.
The ministry specified that the May 2025 non-oil revenue, amounting to 120 billion dinars, "was deposited in cash into the bank account of the federal government's Ministry of Finance at the Erbil branch of the Central Bank of Iraq."
This action comes as high-level committees from Erbil and Baghdad are scheduled to meet today, Tuesday, July 22, to address the outstanding issues of salaries, the resumption of the Kurdistan Region's oil exports, and the implementation of a recent understanding between the two sides.
Ikhlas al-Dulaimi, a member of the Iraqi Parliament's Finance Committee, told Kurdistan24 that the meeting will focus on establishing a clear "mechanism for resuming oil exports and non-oil revenues."
She added a crucial condition for the payment of withheld salaries, stating that "after the Region's oil exports resume, the federal government will send the salaries for May, June, and July for the Kurdistan Region's employees."
The framework for these negotiations was set on Thursday, July 17, when the Iraqi Council of Ministers held a specific session on the Kurdistan Region's oil and salaries, voting to approve a memorandum of understanding between Erbil and Baghdad.
According to that understanding, the Kurdistan Regional Government is required to hand over 120 billion dinars monthly from non-oil revenue and 230,000 barrels of oil per day to the federal government.
