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Iraq’s oil minister calls on KRG to comply with budget, send oil to Baghdad

PM:06:29:26/09/2021

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SULAIMANI — Iraq’s Ministry of Oil said on Sunday (September 26) that the Kurdistan Regional Government (KRG) should hand over 250,000 barrels of oil per day or its cash equivalent to the federal government at the price set by the country’s oil marketer SOMO.

The KRG and the federal government have been locked in a long-standing dispute over oil revenue and the federal budget.

Under the 2021 Federal Budget Law, which passed the Council of Representatives this spring, Erbil is required to send 250,000 barrels of oil or its monetary equivalent to Baghdad in return for its budget share.

The KRG has refused to send any oil or money and so the federal government has withheld budget transfers. A side deal has sent 220 billion Iraqi dinars ($137 million) per month to pay public salaries, but both sides are clear that this stipend is not part of the budget.

Oil minister Ihsan Abdul-Jabbar also told the state-owned Iraqi News Agency (INA) that once the KRG comes into compliance with the budget, SOMO will send all required files and documents to the Ministry of Finance to record the amount of income the KRG should receive.

Abdul-Jabar added that the federal government has reached an agreement with the KRG’s Minister of Natural Resources Kamal Altrushi to send one million liters of regular gasoline a day to the Region in order to combat local shortages.

(NRT Digital Media)