Kurdistan Region of Iraq to Deepen Economic Ties with Iran, Boosting Trade Exchange, 3 OCT

 Kurdistan Region of Iraq to Deepen Economic Ties with Iran, Boosting Trade Exchange, 3 OCT

The Kurdistan Region of Iraq’s (KRI) Importers and Exporters Union is committed to enhancing its relationship with the Islamic Republic of Iran, particularly in the economic and trade sectors. Mustafa Sheikh Abdul Rahman, President of the Union, outlined plans to augment trade exchange, with a specific emphasis on the city of al-Sulaymaniyah.

Strengthening Trade Ties

The plans for trade expansion were discussed in a meeting with Hojjatollah Abdolmaleki, advisor to the Iranian President. The Union seeks to exploit trade exchange with Iran’s free zones to meet the needs of Kurdish investors. Both the Union and Abdolmaleki will continue to strategize and meet to discuss further plans for KRI-Iran trade expansion. The Iranian Consul in al-Sulaymaniyah confirmed that trade between the two parties has already surpassed two billion dollars.

Iran’s Influence in the Region

Amidst ongoing disputes between Erbil and Baghdad over budget and oil revenues, Iran has increased pressure on both cities to disarm and relocate Iranian Kurdish opposition parties in the Kurdistan Region. Most of these parties are in areas controlled by the Kurdistan Regional Government (KRG), except the Kurdistan Free Life Party (PJAK) who are in territories controlled by the Kurdistan Workers Party (PKK) in the Qandil mountains.

The position of the Kurdistan Region significantly weakened after Baghdad won an international arbitration case in Paris against Turkey, stopping the export of 500,000 barrels of oil per day through Turkey. This decision significantly impacted Kurdistan’s primary form of revenue generation, making it more dependent on Baghdad’s budget. Consequently, the KRG is under pressure to make concessions.

Political Dynamics in the Region

Even before the current administration of Iraqi Prime Minister Mohammed Shia al-Sudani, Iran has carried out several ballistic missile and drone attacks on Iranian Kurdish forces in the Kurdistan Region since 2018. The Kurdistan Regional Government (KRG) previously instructed the Iranian Kurdish parties to refrain from using the Kurdistan Region’s territory as a staging ground for attacks on Iran.

However, the political and economic challenges for the autonomous region have escalated, with an increasingly belligerent government in Baghdad. The KRG’s rivals, including militia groups designated as terrorists by the United States, have begun circling, sensing America’s focus is elsewhere.

Implications for the United States

The Kurdistan Regional Government (KRG) plays a crucial role in U.S. interests. Its Peshmerga forces are key partners in the fight against the Islamic State and other extremist groups. The region has historically acted as a buffer against tumult and turmoil in the rest of Iraq. However, with Washington now preoccupied with its intensifying rivalry with China and the war in Ukraine, little attention is being paid to Kurdistan. Its collapse would spell upheaval and chaos with implications stretching well beyond Iraq.