Iraq-Turkiye pipeline dispute: Billions in damages unresolved
The long-running dispute between Iraq and Turkiye over Kurdish oil exports has reached a damaging deadlock, cutting off vital revenues and igniting high-stakes legal battles.
According to a report by Eurasia Review, the conflict centers on Turkiye's decision to allow the Kurdistan Regional Government (KRG) to export crude independently between 2014 and 2023, sidestepping Baghdad's authority under the 1973 Iraq–Turkiye Pipeline Agreement.
In 2023, the International Chamber of Commerce (ICC) ruled in Baghdad's favor, ordering Ankara to pay $1.4 billion in damages for unauthorized oil transit. Eurasia Review notes that Ankara has not yet paid the full sum and is currently seeking to renegotiate the figure, while interest continues to accumulate. Iraq has since filed a second arbitration case, demanding an additional $3–5 billion for exports carried out between 2018 and 2023.
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