Continuing legacy: Biden extends Bush-era executive order safeguarding Iraq's assets, 23 APRIL

Continuing legacy: Biden extends Bush-era executive order safeguarding Iraq's assets

Shafaq News / Across successive American administrations, the enduring legacy of protecting Iraq's assets, initially set forth by former President George W. Bush, endures.

This legacy encompasses reaffirming a presidential executive order to safeguard the "Iraqi Reconstruction Fund," established to secure revenues from oil sales and shield them from potential legal challenges. Furthermore, a suite of directives aimed at safeguarding Iraq's assets has been extended, marking over two decades since the country's regime change.

US President Joe Biden recently signed a decree extending the national emergency status related to Iraq's situation for another year. This extension occurs against ongoing challenges to Iraq's reconstruction efforts, peace restoration, and development of its political, administrative, and economic institutions.

Notably, these obstacles pose significant threats to both Iraqi and US national security and foreign policy objectives. Therefore, President Biden has deemed it imperative to sustain the national emergency declared under Executive Order 13303, addressing Iraq's stabilization.

Order 13303

Executive Order 13303 was crafted to shield the Iraqi Reconstruction Fund and other assets of interest to Iraq. Former President George W. Bush identified a threat of seizure or legal actions against the Iraqi Reconstruction Fund, Iraqi oil, petroleum products, and their revenues. This situation was deemed an unusual and extraordinary threat to US national security and foreign policy, prompting a national emergency declaration.

The order nullifies any seizure, judgment, or other legal action against the Iraqi Reconstruction Fund and associated assets. Additionally, it prohibits American citizens, residents, and entities from filing lawsuits against Iraqi funds. Per the US National Emergencies Act, failure to renew the executive order within 90 days renders it void.

Reconstruction Fund

The Iraqi Reconstruction Fund emerged post-2003, replacing the arrangement under the Oil-for-Food Program, wherein the United Nations managed Iraqi oil sales revenues.

In the mid-1990s, a United Nations Security Council resolution concerning the Oil-for-Food program was issued, allowing for the sale of a portion of Iraqi oil in exchange for purchasing medicines and food during Saddam Hussein's regime, which suffered from international sanctions following his invasion of Kuwait in 1990.

This arrangement continued until 2003, when a new resolution was passed by the Security Council, lifting most of the economic sanctions on Iraq, contingent upon resolving issues related to the Kuwait invasion, such as compensation and prisoners.

Regarding this, Iraqi writer and political researcher Aqeel Abbas stated that "when the sanctions were lifted, a problem arose as there were numerous claims against Iraq by hundreds of companies that suffered losses from Iraq's invasion of Kuwait, in European countries and elsewhere."

He added to Alhurra that "Iraqi embassies at that time did not attend court sessions to defend or reduce the compensations, resulting in courts issuing default judgments with exorbitant amounts."

Abbas, currently residing in Virginia, affirmed that "there were judicial orders freezing Iraqi funds until the claims ruled by the courts were fulfilled."

"Therefore, what saved Iraq from these claims was the protective order issued by former US President George Bush in 2003," according to Abbas, who pointed out that "under the presidential executive order, Iraqi funds in the Iraqi Reconstruction Fund were protected as if they were American funds."

American influence

In 2010, the Iraqi Reconstruction Fund was dissolved by a UN decision, which also terminated all international guarantees of immunity granted to Iraq from compensation claims.

Instead of the dissolved fund, an account was opened under the Iraqi Central Bank (CBI) at the US Federal Reserve Bank, where all revenues from Iraqi oil sales were deposited.

However, the United States renewed the presidential executive order annually to protect Iraqi funds from any legal pursuits.

Former Iraqi Parliament's Finance Committee member Ahmed Hamah Rashid stated that "maintaining the status quo means that the fate of Iraq's funds will remain tied to the United States, which represents a strong bargaining chip in Washington's hands." He explained that "this issue cannot be resolved except by repaying all debts, which will take years if not decades."

On the other hand, Abbas pointed out that linking the issue of protecting Iraqi funds from legal pursuits to the United States "grants Washington significant leverage over Baghdad," adding that "resolving the crisis requires a political decision, as happened with Greece and Argentina, for example, by enlisting a reputable and influential law firm to be given full authority."

ABOUT CURRENCY PRICE ADJUSTMENTS BY GOLDILOCKS, 23 APRIL

 GOLDILOCKS

Currency devaluations on a global scale is really picking up steam. We are about to see currency interventions begin to take place on a massive scale.

This does not mean we're about to see a revaluation many of you are looking for going forward. It just means that Credit Valuation Adjustments are about to begin on every sector of the market including Forex. 

We could see some currency price adjustments, but we are looking for those CVAs to be backed by real values based on the releasing of caps on gold.

© Goldilocks

https://www.cnbc.com/2024/04/22/ukraine-war-live-updates-latest-news-on-russia-and-the-war-in-ukraine.html#107404426-post

https://www.transwap.com/blog/does-national-debt-affect-the-currency-exchange-rate

Will Market Correction Continue? 'I Feel The Fear’ Says Chris Vermeulen

From challenges to collaborations: IRAQ-TURKIYE relations in focus, 23 APRIL

From challenges to collaborations: IRAQ-TURKIYE relations in focus

Shafaq News/ Iraq and Turkiye's relationship spans a spectrum of challenges and collaborations, from addressing security concerns related to the PKK to fostering robust trade ties and navigating complexities in the oil and water sectors. 

This report sets the stage for a closer examination of the multifaceted dynamics shaping their bilateral interactions.

Turkiye's Military Operations And Iraq's Evolving Response

The Turkish Armed Forces have been conducting cross-border military operations against the Kurdistan Workers' Party (PKK) since the 1980s.

The PKK maintains bases in the mountainous areas of northern Iraq near the Turkish border. This proximity allows them to launch attacks into Turkiye.

In contrast, the Turkish army has established several military bases at strategic points in the Matin mountain range in Iraqi Kurdistan, citing the expulsion of Kurdistan Workers' Party militants as justification.

In July 2015, a two-and-a-half year-long ceasefire broke down, and the conflict between Ankara and militants of the PKK – recognized as a terrorist organization by Turkiye, the U.S., and the European Union – entered one of its deadliest chapters in nearly four decades.

Since that date, the conflict has progressed through several phases. Between roughly 2015 and 2017, the violence devastated communities in some urban centers of Turkiye's majority Kurdish southeast and – at times – struck into the heart of the country's largest metropolitan centers. From 2017 onward, the fighting moved into rural areas of Turkiye's southeast.

As the Turkish military pushed more militants out of Turkiye, by 2019, the conflict's concentration shifted to northern Iraq and northern Syria.

In 2020, the first mission triggered a series of subsequent operations with similar names and methods of execution, each justified differently. 

Between June and September 2020, Ankara launched Operation Claw Eagle and Claw Tiger, characterized by airstrikes carried out by aircraft and drones targeting PKK positions in Mount Sinjar. Additionally, ground operations were conducted in Haftanin (Zakho District of Duhok) against Kurdish guerrilla forces.

In April 2021, the Turkish army launched Claw-Lightning and Claw-Thunderbolt operations along the Iraq-Turkiye border near Metina, Zap, and Avashin-Basyan.

In April 2022, Ankara commenced Operation Claw-Lock in northern Iraq, establishing several bases in Duhok Governorate.

Iraq views Turkish airstrikes and bases as a violation of its sovereignty and territorial integrity. These operations commonly cause civilian casualties and damage infrastructure alongside the killing of PKK members.

The Iraqi government also worries that Turkish military presence in northern Iraq could destabilize the Region and empower Kurdish separatists within Iraq.

The PKK conflict, spanning about four decades, has been a persistent challenge, with Turkiye expressing disappointment in the Iraqi government's historical "reluctance" to acknowledge and ban the PKK as a terrorist organization.

However, recent developments have signaled a shift in Iraq's stance. 

Last March, Turkiye proposed the establishment of a "joint operation center" with Iraq to combat the Kurdistan Workers' Party (PKK), a move that has received a positive response from Baghdad.

Previously, a high-level Turkish delegation, including Foreign Minister Hakan Fidan, Defense Minister Yasar Guler, and National Intelligence Organization (MIT) head Ibrahim Kalin, visited Baghdad for a top security meeting with Iraqi counterparts. This meeting marked the second round of discussions, with the first round held in Ankara in December.

During a press conference in Ankara, Brigadier General Zeki Akturk, the Turkish defense ministry's media, and public relations advisor stated that Iraq and Turkiye are ready to sign a strategic framework document. This document aims to establish a joint operations center as part of Ankara's efforts to combat terrorism.

"Both countries are positively inclined towards our proposals for the Joint Operations Center and other cooperation efforts in combating terrorism," said Akturk. He also noted that Iraq recognizes the PKK as a threat.

According to a Turkish defense ministry official, the proposal aims to enhance cooperation in addressing the PKK's activities along the Iraq-Turkiye border.

Following the high-level talks, Iraq announced the designation of the PKK as a "banned organization."

Moreover, the Kurdistan Region is always confirmed to turn the Region into a source of conflict with neighboring countries.

In a TV interview last February, the President of Kurdistan Region, Nechirvan Barzani, was asked if Turkiye coordinates with Erbil when launching strikes against PKK in the Region; Barzani explained, "The (Kurdistan) Workers' Party is a severe headache for the Kurdistan Region and Iraq as well. They do not value the legitimacy of the Kurdistan Region's institutions and threaten Turkiye from our territories. While we completely reject the principle of turning the lands of the Kurdistan Region into a source of threat to our neighbors, whether this neighbor is Turkiye or Iran."

He rejected that PKK, as opponents of Tehran and Ankara, "make the Kurdistan Region a safe area to create problems for these countries. It is regrettable that the PKK plays a very negative role in this context and uses the mountainous areas of the Kurdistan Region and tries to create problems for Turkiye. This is absolutely unacceptable from our side."

Iraq-Turkiye's Growing Economic Partnership

Iraq and Turkiye have a long history of trade relations; Turkiye's most important exports to Iraq include chemicals and products, the oilseed sector and its derivatives, grains and legumes, furniture, paper and forest products, the construction sector, and medicines.

On the other hand, Iraq's most important exports to Turkiye are mainly oil.

On Saturday, the Turkish Ministry of Trade revealed that Turkish exports to Iraq would soon increase to $15 billion and $20 billion by 2030.

Turkish Minister of Trade Omer Polat told Anadolu Agency that "Iraq has always been one of the most important countries for Turkiye in terms of trade and economic relations," noting that "Iraq's share of Turkish exports over the past ten years exceeded 5% of the country's total exports."

Polat clarified that "Turkish exports to Iraq encompassed most sectors, with the trade volume between the two countries reaching $24.2 billion in 2022 and $19.9 billion last year."

"Our exports to Iraq decreased by 7.2% compared to the previous year, reaching $12.8 billion, while our imports from Iraq decreased by 31.1% to approximately $7.2 billion during the same period. Our foreign trade surplus was $5.6 billion last year."

Polat emphasized that "exports increased by 24.5% during the first three months of 2024 compared to the same period last year, reaching $3.4 billion, while imports decreased by 46.2% to $835 million."

The Turkish Minister of Trade concluded by indicating that "Turkish exports to Iraq are poised to reach $15 billion soon and $20 billion by 2030, with the completion of the Development Road project."

Oil Diplomacy: Tensions And Renewed Efforts In Iraq-Turkiye

 Energy Relations

The energy dynamics between Iraq and Turkiye have played a pivotal role in their diplomatic ties, given Turkiye's energy consumption and reliance on imports, primarily from hydrocarbons, due to limited domestic resources. 

Iraq, particularly the Kurdistan Region of Iraq (KRI), has emerged as a crucial partner for Turkiye, particularly in oil and gas reserves.

Over the years, Turkiye has become a key strategic ally for the KRI, facilitating the export of approximately 500 thousand barrels per day (mb/d) of oil through the Ceyhan port. However, tensions escalated in March 2022 when Turkiye halted oil exports amounting to 450,000 bpd from Kurdistan following a compensation order by the International Chamber of Commerce related to "unauthorized" oil exports by the KRG between 2014 and 2018.

The crux of the dispute revolves around accusations that Turkiye breached a 50-year-old pipeline transit agreement by allowing oil exports from KRG-controlled areas without Iraq's consent. 

Baghdad contends that Ankara and the Turkish state energy company BOTAS violated the terms of a 1973 Iraq-Turkiye pipeline agreement by handling oil from Kurdistan without official approval.

Iraq asserts that only the state-owned marketer SOMO has the authority to manage crude exports via Ceyhan.

While most of Iraq's crude exports pass through southern ports, the northern route via Turkiye still contributes around 0.5% of the global oil supply.

The halt in exports contributed to the oil barrel to reach 80$ at that time. 

During a visit to Erbil in November 2023, Iraqi oil minister Hayan Abdel-Ghani expressed optimism about reaching an agreement with the KRG and foreign oil companies to resume oil production from Kurdish oilfields.

Despite Turkiye's prior announcement that the pipeline was ready to operate, Iraq maintained that it had yet to receive official notification and highlighted unresolved financial and technical issues. 

However, recent discussions between the Iraqi PM Mohammed Shia Al-Sudani and U.S. President Joe Biden emphasized the importance of ensuring Iraqi oil reaches international markets, signaling a renewed effort to reopen the pipeline between Iraq and Turkiye.

In response, the Association of the Petroleum Industry of Kurdistan (APIKUR) expressed readiness to engage in discussions with Iraqi and KRG officials to resume oil exports, stressing the need for guarantees regarding financial obligations per existing agreements.

Water Crisis: Turkiye's Dams And Iraq's Droughts

The water problem between Iraq and Turkiye primarily revolves around the flow of the Tigris and Euphrates rivers, which originate in Turkiye and flow through Syria and Iraq. 

The construction of dams and large irrigation systems by Turkiye has led to a massive reduction in water flow into Iraq by 30-40%, causing droughts and water shortages.

In addition, Turkiye's Southeastern Anatolia Project (GAP) and the Ilısu Dam project are particularly contentious. They have resulted in a 40% cut in water flows into Syria and Iraq, impacting agriculture, energy production, and the overall water supply in these countries. 

This reduction in water flow has been a major source of tension between the two countries, with Turkiye's projects leading to droughts in Iraq and exacerbating the water shortage crisis in the Region.

"IRAQ BOOTS ON THE GROUND REPORT" BY FIREFLY, 23 APRIL

 Frank26 

  [Iraq boots-on-the-ground report] 

  FIREFLY:  The next meeting with the United States of America will be held in Baghdad the television is telling us.  They're coming to us now...

Frank26   Sudani returned back to Iraq because he wanted to make a speech but it turns out that the time was passed on and it was through Alaq.  But Alaq is in the United States of America how can he make a speech today? 

 [Iraq boots-on-the-ground report]  

FIREFLY:  We believe this is a prerecorded interview by Alaq...

 FIREFLY:  Television saying that Alaq the CBI governor is going to stay in Washington DC for a few extra days.  They saying to us that he's following up on what Sudani was doing...

  FRANK:  Now that Sudani is back he's going to start the process of explaining to you Iraqi citizens everything on how you are going to be receiving your lower notes, how you're going to use the ATM machines...accounts, maybe even the education on the coins that will be coming out eventually.  You should be excited because I am!

Pimpy and Nader Live 04/22/24

Iraq, Turkiye move closer to resolving Kurdistan oil dispute: spokesperson, 23 APRIL

Iraq, Turkiye move closer to resolving Kurdistan oil dispute: spokesperson

Shafaq News/ Iraqi government spokesperson Bassem al-Awadi said on Monday Ankara is keen on facilitating Iraqi oil exports through the Ceyhan pipeline as Baghdad moves with steady steps towards resolving the long-standing oil dispute with the Kurdistan Regional Government (KRG).

"The issue of Kurdistan's oil is almost settled," he told Shafaq News agency. "The Turkish side informed Iraq over a month ago that it was ready to pump oil through the Turkish Ceyhan pipeline. There is no problem in pumping oil through Turkiye."

He said that "the crux of the matter lies in the relationship between the KRG and the central government, particularly regarding the rights of oil extraction companies in the region." 

According to new regulations, these companies must deal with the federal government and the state-owned SOMO oil company. 

"There are new contracts, companies, and negotiations," al-Awwadi explained. 

"Turkiye is ready and has informed Iraq of this."

Turkish President Recep Tayyip Erdogan arrived in Iraq on Monday for his first visit since 2011. The Iraqi-Turkish talks focus on security, military, and economic matters and expanding trade cooperation.

Turkey has sought closer cooperation from Baghdad in its fight against the Kurdistan Workers' Party (PKK), a sensitive issue that has strained relations between the two countries due to Turkish military operations in Iraq's northern Kurdistan region. Additionally, disagreements over oil exports and water-sharing have further complicated the ties. The dispute over Kurdistan's oil exports has been a particularly thorny issue, with the two sides at odds over the resumption of oil exports through a pipeline running through Turkey.

After nearly a decade of seeking international arbitration, the Iraqi government obtained recognition of its right to control oil exports and ordered Ankara to pay $1.5 billion in compensation for transporting oil without Baghdad's approval. In response, Ankara shut down the export pipeline, which contributes about 0.5% of the world's crude oil supply, and initiated maintenance work. The two countries have agreed to await the completion of the pipeline maintenance assessment before resuming flows while continuing to engage in a legal battle over the arbitration rulings.