Sunday, 04 June 2023 12:52 GMT

Iraqi Kurdistan to resume oil exports with federal oversight

(MENAFN) The autonomous Kurdistan region of Iraq will reportedly resume its oil exports through Turkey on Monday, but with a significant change that marks a clear limit to its autonomy. According to officials from both the regional and federal governments, the oil exports will now be supervised by the federal government in Baghdad, bringing an end to the Kurdish regional government's independent oil exports.

The decision was reached after talks between federal and regional officials, following a ruling by an international tribunal in a nine-year-old dispute that Baghdad should oversee all Iraqi oil exports. Last month, Ankara halted its handling of Iraqi Kurdish oil in line with the ruling.

Moving forward, a federal government official informed AFP that sales of Kurdistan crude will be managed by the State Oil Marketing Organization, while a joint committee formed by the federal and regional governments will supervise the export process. Meanwhile, a Kurdish official stated that the revenues from the oil exports will be paid into an account that is overseen by Baghdad.

This development is significant as it signifies a shift in the power dynamic between the federal government in Baghdad and the autonomous Kurdistan region, with the former taking a greater level of control over the latter's oil exports. It remains to be seen how this will impact the dynamics between the two sides moving forward, particularly given the long-standing tensions between them. Nevertheless, the resumption of oil exports is a positive development that is likely to have a positive impact on the region's economy.


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