Viktor Katona described the financial situation in Kurdistan Region and the Iraqi central government as critical, citing the spread of the Corona virus, falling oil prices and declining oil production by the Iraqi government at the request of OPEC Plus members.

In his article in Oil Price, he warned that the many differences between Erbil and Baghdad, apart from the dispute over oil and budget, could lead the Kurds and the central government to a dangerous level of confrontation. However, the need for the two sides to resolve the financial crisis can bring them closer together.

Katona has called for the establishment of the Iraqi national oil company as one way to resolve the oil and budget crisis between the Kurdistan Region and the central government, because according to him the establishment of a national oil company in Iraq could defend the interests of the Iraqi federal government, including the Kurdistan Region.

According to the researcher, the two sides' reference to last year's agreement, according to which the Kurdistan Region could receive about 13 percent of Iraq's budget for the delivery of 250,000 barrels of oil, could pave the way for a final agreement between Erbil and Baghdad.

Reporter's code: 50101