Iraq threatens to cut KRG share of budget over Erbil-Baghdad oil dispute

The Iraqi Minister of Finance, Ali Allawi said on Monday, June 6, if the Kurdistan Regional Government (KRG) does not reach an agreement with the federal government the ministry will have to cut the KRG’s percent of the share of income.

Allawi told Iraqi News Agency (INA) the Federal Supreme Court’s decision against the KRG’s oil contracts makes the Kurdistan Region’s oil sales illegal.
The supreme court ruled in February the KRG’s oil and gas law was against the Iraqi constitution and has challenged the Region’s contracts with international oil companies.
He said if an agreement is not reached between Baghdad and Erbil then the Ministry will have to cut all financial support to the KRG.
Allawi also stated all oil sales have to be carried out by Iraq Iraq's State Organization for Marketing Oil (SOMO).
The KRG has repeatedly rejected the court’s verdict, calling the ruling a political decision, and has insisted its oil and gas law does not violate the 2005 constitution while stating the Iraqi Federal Supreme Court is itself unconstitutional.
Reporter's code: 50101

News Code 2592

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