The Kurdistan Regional Government (KRG) has handed over its oil to the federal government in Baghdad. As a result, Baghdad released a portion of the national budget to the Kurdish region. This deal marks a significant shift in relations between the KRG and Iraq’s central government.
Previously, the KRG sold oil independently through Turkey. However, disputes over revenue sharing strained ties with Baghdad. The recent agreement aims to resolve those issues and ensure more stability in the region.
Under the new arrangement, the KRG will deliver all its crude oil exports to Baghdad. In return, Baghdad will send budget payments regularly to the Kurdish region. These funds will help pay public salaries and support basic services.
Many Kurdish officials welcomed the deal. They believe this step will boost economic stability in the region. Meanwhile, Iraqi leaders said the agreement strengthens national unity. Both sides view it as a step toward long-term cooperation.
This development could ease political tensions between Erbil and Baghdad. It also signals a new chapter in managing Iraq’s natural resources. With regular budget transfers, the KRG can now plan its finances more effectively.
In conclusion, this oil-for-budget deal benefits both sides. It promotes transparency and encourages stronger ties between Iraq’s governments.