Exclusive: US links Iraq-KRG salaries to pipeline reopening
Shafaq News/ On Thursday, the US State Department called on both Baghdad government and the Kurdistan Regional Government (KRG) to fulfill constitutionally mandated financial obligations and settle their disputes through constructive dialogue.
Responding to a Shafaq News inquiry about Baghdad's suspension of salary payments to the Kurdistan Region, a State Department official emphasized that resolving the dispute over salary payments would 'sends a signal that Iraq puts the interests of its people first' and help create an investment-friendly environment. 'It would also send a positive signal on possibilities for reopening the Iraq–Turkiye pipeline.'
The US official reiterated that American support for the Kurdistan Region remains a 'crucial element' of Washington's relationship with Iraq, pointing out that Secretary of State Marco Rubio recently hosted KRG Prime Minister Masrour Barzani in Washington and also spoke with President Nechirvan Barzani, stressing the importance of continued cooperation to promote Iraq's stability and prosperity.
Earlier, Iraq's Ministry of Finance suspended funding for May salaries, citing the KRG's alleged failure to adhere to budget allocations and deliver oil and non-oil revenues as agreed. Erbil rejected the accusations, arguing that Baghdad had failed to uphold its own financial commitments.
The salary dispute coincides with Erbil's announcement of two major energy investment deals with US companies valued at over $110 billion. The agreements sparked criticism from Baghdad, which viewed them as a breach of federal authority.
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