Turkey "Turns The Tables" On Iraq.. Baghdad Is Demanding More Than $3 Billion In Compensation To Ankara, 9 SEPT

 Turkey "Turns The Tables" On Iraq.. Baghdad Is Demanding More Than $3 Billion In Compensation To Ankara

Politics |Today   Baghdad today - Erbil   Oil expert Kovind Sherwani confirmed today, Saturday (September 9, 2023), that the decision of the International Arbitration Court in Paris obligated Turkey to pay compensation to Iraq with a fine of one billion and 400 million dollars.

Sherwani told "Baghdad Today", "The Turkish government initially announced its commitment to the decision and stopped the export of oil through the Turkish port of Ceyhan, but it issued a statement in which it confirmed that the court's decision included five items in favor of Ankara."

He added, "According to the decision and provisions published by Turkey, there are compensations that Iraq must pay to the Turkish government amounting to more than 950 million dollars."

He pointed out that "all visits by Turkish officials did not lead to an agreement and settlement for the purpose of resuming oil exports," adding, "The cessation causes harm to the three parties, Baghdad, Ankara, and the Kurdistan region."

While Sherwani pointed out that “the issue of the oil dispute will not be resolved through the courts because it will take a long time and we will need money and expenses to be borne by all parties,” he stressed that “the solution is to sit at the negotiating table and solve the crisis radically.” 

The Kurdistan Region oil file was transferred between the Iraqi government and the Turkish government, from the courts of Paris to the courts of the United States of America. Baghdad and Ankara filed lawsuits against each other in American courts.

Iraq demands that Turkey pay a fine of (two billion and 400 million) dollars, for violating the agreement signed with it in 1973. For its part, Turkey has other accounts and is demanding compensation from Baghdad in the amount of (950 million) dollars .

On this basis, the Turkish government filed a lawsuit against the Iraqi government before an American court, demanding that Baghdad pay it compensation amounting to $956 million, refusing to pay any compensation to Iraq .

According to a report by the "Middle East Eye" website, based in the British capital, London, about the problems between Turkey and Iraq regarding the export of Kurdistan region's oil through the port of Ceyhan, the Turkish government filed a lawsuit against the Iraqi government before the District Court of Columbia in the American capital, Washington, according to which it refuses to pay any compensation to Iraq, Baghdad demands compensation amounting to $956 million. 

It is noteworthy that Iraq has not paid part of the fees for transporting oil through Turkish territory since the 1990s. The international arbitration panel set an interest rate on this debt, which increases successively whenever Iraq delays payment .

Turkey says, according to the report, that with the interest rate set by the International Arbitration Tribunal in Paris calculated for the amounts that each of the two countries must pay to the other, the amount that Iraq must pay to it becomes greater than what it must pay to Iraq .

In this regard, the report believes that Iraq will receive compensation amounting to $2.6 billion after calculating interest, while Turkey will receive $3.5 billion, meaning that Ankara will gain $919 million for the difference between the two informants for the period preceding the international arbitration panel’s decision, in addition to $37.7 million. Dollars in interest after the Authority’s decision, bringing the total to $956 million . 

The export of oil from the Kurdistan region through the Turkish port of Ceyhan to abroad was halted on March 25, in response to a decision issued by the international arbitration panel in Paris based on a lawsuit filed by the Iraqi authorities against Turkey.

The report indicated that Iraq did not inform the Turkish authorities of the matter, despite efforts made to discuss how to take action following the International Chamber of Commerce’s decision, a decision that accuses Turkey of violating its agreement with Baghdad and practicing oil trade in isolation from Baghdad and directly with the Kurdistan Regional Government between 2014 and 2018 .

According to the British website, after the Iraqi move, angry Turkish officials promised that Iraq would pay the price for this measure during their private talks, so last August 31, they took a step in this direction and filed a lawsuit in an American court, demanding compensation .

Following the decision of the Arbitration Court in Paris on March 25, Turkey suspended oil exports to the Kurdistan Region, which constitute 0.5% of the world’s total oil exports.

The British website wrote, “Turkey wants Iraq to withdraw the second lawsuit before the Arbitration Court in Paris regarding the period after 2018, in order to reach common ground regarding the court’s decision, as Ankara called on Iraq to find a payment system that satisfies both the governments of Baghdad and Erbil.”    LINK