KRG Delegation, Iraqi Finance Minister Reach Agreement; Talks to Resume Next Week

ERBIL (Kurdistan24) – A Kurdistan Regional Government (KRG) delegation held a meeting on Wednesday with Iraqi Finance Minister Taif Sami in Baghdad, where both sides reached preliminary agreements on several key issues. The discussions are set to continue for next week, according to Kurdistan24 reporter Dilan Barzan.

The talks focused on revenue sharing, Kurdistan Region public employee salaries, oil exports, and the Kurdistan Region’s share of the federal budget law.

Barzan reported that the two sides agreed to review the Kurdistan Region’s non-oil revenues for the period between July and December 2024, following the separation and classification of federal revenues generated in the region.

On customs and border revenues, the KRG and Baghdad agreed that 50 percent will be transferred to the federal government. However, no final agreement has yet been reached regarding tax revenues.

Regarding public sector salaries in the Kurdistan Region, both parties agreed to complete the process of transferring payments to bank accounts by the end of this year.

The meeting also addressed the long-stalled issue of oil exports from the Kurdistan Region. According to Barzan, the KRG Ministry of Natural Resources and Iraq’s Ministry of Oil have reached a preliminary understanding, but three oil companies operating in the Region must restart exports before implementation can move forward.

Another item on the agenda was the Kurdistan Region’s share of the federal budget for the years 2023, 2024, and 2025. The KRG delegation called for a legal solution through legislation to ensure the Region’s entitlements.

Meanwhile, the Iraqi Ministry of Finance is expected to release the June salaries of KRG public employees early next week.

“Our meeting was productive,” Fares Isa, the KRG’s representative to Baghdad and member of the delegation, told Kurdistan24 following the talks.

Oil exports through the Iraq-Turkey Pipeline have been suspended since March 2023 following a ruling by the International Chamber of Commerce (ICC) that halted independent Kurdish oil sales.

The preliminary understanding on oil exports is significant as it could pave the way for the resumption of crucial revenue streams for the Kurdistan Region. Oil exports have long been a contentious issue between the KRG and the federal government, impacting the region's economic stability and development. A successful agreement could enhance cooperation between the two sides and ensure a more predictable financial future for the Kurdistan Region.