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US 'concerned' implementing federal court's ruling on Kurdistan energy drives out firms

PM:12:49:15/09/2022

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SULAIMANI— United States Assistant Secretary of State for Near Eastern Affairs, Barbara Leaf, has said that the US takes no "legal position or constitutional position" on February's Iraqi federal court's ruling on the Kurdistan Region's energy sector.

The ruling dictates that the (Kurdistan Regional Government) KRG’s law on the independent sale of the oil and natural gas was against the Iraqi constitution.

Leaf made the comments yesterday (September 14) during a special briefing on her first trip as an ambassador to the Middle East.

She visited Baghdad and Erbil between September 4 and 7 meeting Iraqi and Kurdish leaders and officials as well as civil society members, entrepreneurs, and journalists.

"The February decision by the Iraq supreme court invalidating Kurdish Regional Government arrangements for export of oil and gas was – and the enforcement of that was an issue on which the U.S., on the one hand, takes no legal position, no constitutional position," Leaf explained responding to a reporter's question.

"But on the other hand, pushing forward right now in the midst of an ongoing crisis over – political crisis over government formation simply would risk a widening kind of economic crisis, and that is the last thing that the Iraqi public needs."

She said the Us has suggested that Erbil and Baghdad discuss the arrangements to take this issue into "third-party negotiation or some other such venue such that, essentially, they could provide the space for discussions of a technical nature that on the other side of government formation could be taken up again to drive towards what everyone agrees is long overdue and quite necessary, which is a hydrocarbons law."

 

'Washington concerned'   

She added that there is a need for a larger hydrocarbon legal framework to resolve the issue.

She said: "I’m quite concerned – Washington is quite concerned – that rushing forward and implementing this decision risks driving U.S. firms out of Iraq, other firms out of Iraq, which would be a terrible vote of no confidence in the business environment in Iraq and, frankly, could produce wider economic repercussions well beyond the Kurdish region of Iraq."

Following the federal court's ruling, several foreign firms, including U.S. oilfield services companies Schlumberger, Baker Hughes and Halliburton have left the Kurdistan Region.

KRG officials, however, have rejected the federal court's ruling and described it as "political".

 

 Human rights

Leaf said that she discussed human rights with Kurdish leaders and officials during her two-day trip to the Kurdistan Region.

"I emphasized the importance of respect for human rights and freedom of expression. Journalists and activists have a vital role to play in a strong democracy."

Leaf said that during her one-week stay in Iraq, she met senior government officials and political leaders, civil society, academic, and faith leaders, young entrepreneurs, journalists, and human rights, defenders.

She added that in the Biden administration’s approach toward Iraq, all programs, activities, and policies support Iraq’s sovereignty, stability, and security.

In Regard to government formation and the recent outbreak of violence in Baghdad, Leaf said: "in Baghdad, I delivered a straightforward message to a range of senior governmental leaders, including the prime minister, the president, the Council of Representatives speaker, saying that there is an urgent need for Iraq’s political leaders to come together for an inclusive dialogue to make important compromises that will chart a way out of Iraq’s current crisis over government formation."

(NRT Digital Media)