FIREFLY:Television says President Trump threatens Iraq to speed up transfer of oil pipeline or will suffer sanctions like Iran.
FRANK: That is 100% correct. The reason my president is saying that to Iraq is because Iran threatened to attack you... Iraq is and my president is trying to speed things up so you Iraq can be in a position to be powerful over your enemies. If not we both lose and Iraqi citizens lose their purchasing power...There must be a date...
Washington Threatens Baghdad With Sanctions If It Does Not Resume Kurdistan Oil Exports Quickly
02/21/2025 Mawazine News – Economy The United States threatened the federal government in Iraq with sanctions on Friday if the Kurdistan Region's oil exports are not resumed quickly.
Reuters quoted sources as saying: "The administration of President Donald Trump asked Iraq to resume Kurdish oil exports quickly or face sanctions alongside Iran."
The sources added that "Washington believes that Kurdish oil sales could help reduce crude prices and compensate for the decline in Iranian supplies."
Oil Minister Hayan Abdul Ghani revealed last Tuesday that Iraq had sent a delegation from the ministry to the Kurdistan Region to agree on a mechanism for delivering and exporting the region's oil through the Turkish port of Ceyhan.
The oil minister said that contact had been made with the region's Minister of Natural Resources, Kamal Mohammed Salih, to negotiate with the delegation on the mechanism for receiving and exporting oil through the Turkish port of Ceyhan.
This came one day after Iraq accelerated the expected date for resuming oil exports from Kurdistan, as the federal oil minister said last Monday that oil exports from the Kurdistan Region could resume within just a week.
Iraq exports between 400,000 and 500,000 barrels per day from fields in the north of the country, in the Kurdistan Region, via the now-defunct Iraq-Turkey pipeline.
Oil Minister Hayan Abdul Ghani said earlier this month that at least 300,000 barrels per day of crude were planned to be transported once operations resumed.
In Iraqi Kurdistan, oil production is between about 280,000 and 300,000 barrels per day, and the regional government estimates its domestic consumption needs — including power generation — at around 110,000 to 120,000 barrels per day. https://www.mawazin.net/Details.aspx?jimare=259748
On Saturday, the negotiating delegation of the Kurdistan Regional Government revealed an obstacle to the resumption of the export of Kurdistan region oil, via the Turkish Ceyhan line, noting that its resolution requires approval by the President of the Federal Government, Muhammad Shi'a Al-Soudi.
The Kurdish delegation stated, in a statement received by the Shafq News Agency, that "despite the confirmation of the territorial government of its commitment to implement the law of the first amendment of the Federal Public Budget Law regarding the re-export of oil produced from the fields of the region to the Turkish port of Ceyhan through the Oil Marketing Company (Somo),
However, the joint meeting with the delegation of the Federal Ministry of Oil held on 18-2-2025 in Erbil, It has been emphasized that the application of the above law requires, before starting export, agreement on the quantities allocated for the purpose of local consumption according to the actual needs of the region and its obligations similar to the rest of Iraq.
He added that "the federal side has made it clear that the matter needs to obtain the approval of the Federal Prime Minister, and on the other hand, re-exports require agreement on a specific and clear mechanism for paying the dues of production and transportation companies to the regional government as stated in the law and in detail that was explained in the minutes of the meeting
With the delegation of the Federal Ministry of Oil.The statement of the Kurdish negotiating delegation continued, that the federal side indicated that "this matter is related to the Federal Ministry of Finance and this requires discussing this issue with it."
The delegation stressed the need for the federal side to expedite the resolution of the above-mentioned issues and obtain approvals from the federal authorities, which were discussed in detail at the meeting, and that the regional government stresses the
importance of re-exporting the region's oil as soon as possible by the oil marketing company (Somo) and depositing its revenues in the federal treasury And maximize revenue to serve the public good.
The first of its kind in the region and Iraq as a whole.. Inauguration of an international financial and commercial center in Sulaymaniyah
On Thursday, an international financial and commercial center was inaugurated in the city of Sulaymaniyah. It is the first of its kind in the Kurdistan Region and the rest of Iraq in terms of specialization. Employees considered this a step to localize their salaries and end the crisis that has been ongoing for years .
Sulaymaniyah Governor, Haval Abu Bakr, said in a press conference attended by Shafak News Agency, during the opening ceremony of the center, "This center will provide a suitable environment for banks, financial markets and investment companies to work according to the legal frameworks approved in Iraq and the region ."
He added, "All banks, stock markets, financial and commercial institutions can establish branches within this center, according to the controls issued by the specialized authorities in the federal government and the region," indicating that "this step constitutes a qualitative transformation in the financial and commercial sector of Sulaymaniyah, which enhances its position as an economic hub at the level of Iraq ."
In another context, a group of protesting teachers, who had previously demanded that their salaries be transferred directly from Baghdad, welcomed the decision to open two branches of the Central Bank in the region, and considered this step a prelude to implementing the Federal Court’s decision issued on February 21, 2024, which stipulates the “localization” of the salaries of the region’s employees through the federal government .
However, this issue is still controversial among political circles, as some believe that transferring salaries to Baghdad aims to undermine the regional government and influence its authority, while others consider it a necessary solution to end the crisis of delayed salaries that has been ongoing for more than ten years .
In this context, the governor of Sulaymaniyah explained that "the mechanism for distributing salaries has not yet been decided," noting that "discussions are still ongoing about whether salaries will be distributed through the regional government as in previous years, or whether they will be transferred directly from Baghdad .
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While the opening of the financial and commercial center in Sulaymaniyah is an important step to boost economic activity, resolving the issue of salaries will remain an influential factor in financial and living stability in the region .
For more than a decade, Kurdistan cities have been suffering from a crisis of delayed salaries due to financial disputes between Baghdad and Erbil, which has prompted some groups, such as teachers and employees, to demand that their salaries be paid directly from the federal government .
On February 21, 2024, the Iraqi Federal Court issued a decision to localize the salaries of the region’s employees, but it has not been implemented yet due to administrative and political complications. The opening of the financial and commercial center in Sulaymaniyah constitutes a turning point in the economic scene, amidst the ongoing controversy over the future of financial management in the region . link
