Kurdistan rejects Baghdad oil deal over law violation
The Kurdistan Region is ready to comply with all financial management laws under the Iraqi constitution, but rejects the proposed agreement with the Iraqi government, a senior Kurdish official said on Saturday.
Rebaz Hamlan, Financial Adviser to the Kurdish Prime Minister, told Shafaq News that despite multiple meetings and memorandums of understanding between the two finance ministries, 'the Iraqi government often fails to honor the terms of agreements.'
Hamlan pointed that the Regional Government (KRG) is willing to hand over oil if Baghdad agrees to receive and store it, allocating 50,000 barrels per day for the Region's local needs and about 130,000 barrels for the federal government. 'Baghdad has refused this arrangement and ignored the fact that oil fields have come under rocket and drone attacks.'
He accused Baghdad of seeking to breach the Financial Management Law by demanding all of Kurdistan's local revenues plus 50% of other funds. Despite this, he said, the KRG has decided to transfer all tax and border customs revenues to Baghdad, while keeping certain service fees under the control of Kurdish ministries to cover internal expenses and daily needs.
Hamlan added that Baghdad has so far declined to sign the agreement. The KRG has referred its memorandum of understanding with the Iraqi Finance Ministry to the Federal Board of Supreme Audit, with a decision expected in the Council of Ministers on Sunday.
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