Erbil: The Kurdish Regional Government (KRG) suffered $25 billion in losses because of the suspension of oil exports to Trkiye, Prime Minister Mesrur Barzani said Wednesday, blaming Baghdad for the region's deepening financial crisis. Barzani said the KRG has been unable to pay public sector salaries for two months, accusing Iraq's federal government of violating the Constitution by withholding funds.
According to Anadolu Agency, Barzani emphasized that Baghdad should not be dominated by any single party, asserting the need for equality among all regions within Iraq. He expressed that the KRG considers itself a ruling power within the country. During a news conference in Erbil, Barzani highlighted the KRG's expectation for a resolution from Iraq's Supreme Court regarding the salary dispute. He mentioned that a delegation from Baghdad is scheduled to arrive in Erbil shortly for further discussions.
Barzani warned that the Iraqi government must take equal responsibility for all its citizens, hinting at potential actions should this not occur, though he did not provide specifics. The KRG's economic woes have escalated since oil exports through Trkiye's Port of Ceyhan were halted on March 25, 2023, due to a legal disagreement between Baghdad and Ankara. The KRG heavily depends on oil revenues to fulfill public sector wage obligations and other financial needs.
Describing the $25 billion revenue loss as detrimental not only to the KRG but also to Iraq as a whole, Barzani defended recent energy agreements with US companies, valued at $110 billion and signed in May. He insisted these deals were lawful and in line with Iraq's Constitution. Barzani clarified that the agreement with US companies was a continuation of previous contracts that were not completed by other firms, and that these companies have been operating in the region for 15 years. He dismissed Baghdad's claims that the deals infringe on federal authority.
Barzani also attributed the KRG's salary crisis to political divisions within the region. He noted that, according to Baghdad officials, the federal court's involvement in the salary issue stemmed from a lawsuit filed by certain parties in the Kurdistan Region, requesting direct salary payments from Baghdad.
Additionally, Barzani welcomed the ceasefire between Israel and Iran, noting its positive impact on regional stability. He expressed gratitude to Iraqi Prime Minister Muhammad Shia al-Sudani for maintaining Iraq's neutrality in the conflict.