Frank26
[Iraq boots-on-the-ground report]
FIREFLY:A delegation from the CBI will go to the USA in early April...Television just showed Alaq met with a high delegation from the USA and the CBI.
A lot is happening. Television special saying Iraq's $100 billion in reserves backs Iraq's stability and credibility in the world.
PARLIAMENTARY FINANCE COMMITTEE “EXPLODES A SURPRISE” REGARDING THE COST OF EXTRACTING OIL FROM THE KURDISTAN REGION
The Finance Committee of the Iraqi Council of Representatives said on Sunday that the vote on amending the general budget law is related to the proposal sent by the federal government to the council. While it explained that the cost of extracting oil is $16 and is not fixed, but may reach $22, it confirmed that stopping the export of the region’s oil led to the federal government losing more than $14 billion.
Committee member, Ikhlas al-Dulaimi, told Shafaq News Agency, “The House of Representatives voted today to amend the general budget law, and the vote was on the proposal sent by the government to the House.”
Al-Dulaimi explained that “the cost of extracting oil in the Kurdistan Region, according to the amendment, is $16 per barrel, and the cost is not fixed, as there will be a consulting company that will determine the actual cost of extracting oil, and it may reach $22 per barrel, and according to this cost, the federal government will be obligated to pay it to the Kurdistan Region.”
She explained that, “according to the budget amendment, the region’s oil will be delivered to SOMO, which will be responsible for selling the oil abroad,” noting that “the halt in oil exports was not due to the region, but rather it was due to the federal Ministry of Oil filing a lawsuit against the Ministry of Oil in the region, which caused the halt in oil exports, and this led to the federal government losing more than 14 billion dollars.”
Today, Sunday, the Iraqi Council of Representatives voted on the draft law amending the first law of the Federal General Budget Law of the Republic of Iraq for the fiscal years 2023 – 2024 – 2025 No. 13 of 2023.
For his part, independent MP Ahmed Majeed announced in a statement to Shafaq News Agency that members of the House of Representatives from the central and southern governorates boycotted the parliament session held today, considering that voting on the budget “violates the law and the internal regulations of the council due to the lack of a legal quorum.”
Majeed explained that “the number of present representatives does not exceed 140 representatives, which means that the quorum is not achieved,” stressing that they doubt the legitimacy of the session. He added, “We will file an appeal with the Federal Court against the House of Representatives for violating the law and proceeding with the vote on amending the budget law.”
(Kurdistan has always wanted a bigger % of the oil proceeds as the % now allocated is not enough. The cost of extraction varies by oil well and this has been the reason all along why the Kurds are illegally selling their oil outside of the pumped metered system. This can easily be remedied but Baghdad has to take the time to listen and then take actions to reason with the Kurds on this matter. They are going to work it out as the budget amendments have been passed.)
Finance announces the launch of national bonds (first issue) for public subscription
The Ministry of Finance, represented by the Public Debt Department, announced the launch of national bonds (first issue) for public subscription, with a total value of (2) trillion Iraqi dinars, for the period from February 10 to March 10, 2025, as part of its plan to enhance local investment and provide savings tools for citizens and investors.
The ministry's statement stated that the bonds are distributed into two categories: ️The first bond is worth 500,000 dinars with an annual interest of 6%, and is due after two years, with interest paid every six months.
The second bond is worth 1,000,000 dinars with an annual interest of 7.5%, and is due after four years, with interest paid every six months. It explained
The bonds are characterized by their tradability on the Iraq Stock Exchange, which provides a distinct investment opportunity for citizens and companies looking for stable financial instruments.
She explained that the bond offering comes based on Article 77 first of the Federal General Budget Law No. (13) for the years 2023, 2024, and 2025, with the aim of supporting the national economy and enhancing confidence in the Iraqi financial system. link
KURDISTAN SMUGGLES OIL AND BAGHDAD PAYS THE PRICE.. WHEN WILL THE UNFAIR EQUATION END?
In a scene that reflects a deep imbalance in the relationship between Baghdad and the Kurdistan Region, oil smuggling from the region abroad continues at a time when the United States is demanding that the Iraqi government pay $5 billion in compensation for the work of its companies in Kurdistan.
The equation seems clear: the region is smuggling oil secretly and making financial gains, while Baghdad bears the financial and legal burdens. So how long will this economic bleeding continue? Does the region need a political and security awakening to put things back on track?
Kurdistan and oil smuggling: who wins and who loses?
Smuggling is taking place via the Turkish Kurdistan-Ceyhan pipeline, away from Baghdad’s supervision, using intermediary companies that hide the true source of the oil and sell it on international markets.
Beneficiaries of smuggling
The first and last beneficiary is the Kurdistan Regional Government, which receives direct revenues without returning to the Iraqi treasury, followed by foreign oil companies, most of which are American, operating in the region and reaping huge profits despite legal disputes, in addition to countries and smuggling networks that benefit from the difference between the official price and the price on the black market.
Baghdad is the most affected
A- Huge financial losses: Iraq’s losses due to oil smuggling are estimated at billions of dollars annually.
B- Budget deficit: Baghdad is forced to compensate for the lost revenues from oil smuggling .
C- Legal and international pressure: Washington is pressuring the Iraqi government to pay compensation to American companies operating in Kurdistan, even though these companies operate outside the legal framework of the central government.
D- The United States is demanding that Iraq pay $5 billion in compensation to its companies operating in the region.
At the same time, Washington has not exerted any serious pressure on Erbil to stop illegally exporting oil, which raises a legitimate question: Why does Washington support the entrenchment of the oil and economic division between Baghdad and Erbil?
As the Kurdistan Region continues to reap profits from Iraq’s wealth, while Baghdad bears the legal and financial costs, this unfair situation forces the Iraqi government to make decisive decisions to end this crisis. Are we witnessing the end of the era of smuggled oil, or will politics continue to control the economy?
Member: What are we expecting once the budget tables are done?
MZ: We are expecting and hoping the Iraqi tables to have new rates. Amounts and new rates for currency… I am told parliament is working on them today
MZ: “ Is Silver on the verge of the biggest breakout in History? “ Imo personal opinions based on history and charts we may see silver hit $50 and ounce
Member: Is there any new historic bond or redemption contact news?
MZ: It’s is like pulling teeth to get bond news since they are cracking down on them ..plugging leaks and doing more compliance work as things are again “out of date” since this has taken so long. They are again updating things. So once again while they go through updating compliances….things are very quiet.
MZ: Many bond contacts had expected things to happen on Jan 4th…but some are now looking at after the 10th to the 12th .
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