The Kurdistan Region has firmly rejected Baghdad’s latest oil proposal, citing violations of financial laws. A senior Kurdish official confirmed that the Region remains committed to the financial management laws outlined in the constitution. However, the proposed deal from Baghdad is considered unacceptable.
Rebaz Hamlan, financial adviser to the Kurdish prime minister, explained that numerous meetings and memorandums have taken place between the two finance ministries. Despite these efforts, Baghdad repeatedly fails to uphold its commitments.
Hamlan stated that the Kurdistan Regional Government is ready to hand over oil if Baghdad agrees to store it. Under the offer, 50,000 barrels per day would meet local needs, while about 130,000 barrels would go to the federal government. According to him, Baghdad rejected this plan and disregarded the ongoing rocket and drone attacks on oil fields.
He further accused Baghdad of attempting to break the Financial Management Law by demanding all of the Region’s revenues plus half of other funds. Even so, the KRG has agreed to transfer all tax and customs revenues to Baghdad. It will retain only certain service fees to cover internal operations and daily expenses.
Hamlan confirmed that Baghdad has refused to sign the proposed agreement. The KRG has now referred its memorandum of understanding with the federal finance ministry to the Federal Board of Supreme Audit. A decision is expected from the Council of Ministers on Sunday.