Sunday, February 23, 2025
Iraq invites Japanese companies to invest, confirms readiness for new economic phase, 23 FEB
Iraq invites Japanese companies to invest, confirms readiness for new economic phase
The Senior Undersecretary of the Ministry of Foreign Affairs, Ambassador Mohammed Bahr Al-Uloom, confirmed today, Friday, that Japan has contributed to the reconstruction of Iraq with 34 vital projects, while calling on Japanese companies to invest in Iraq.
Bahr Al-Uloom said, during the celebration of the Japanese Emperor's birthday and the National Day: "The relations between Japan and Iraq are historical and date back to 1939," praising "the development witnessed by these relations to reach the level of fruitful diplomatic partnership."
He added that "the name of Japan is associated in the Iraqi memory with the meanings of loyalty, honesty and efficient performance, in addition to the lofty human values that are consistent with our Arab and Islamic values and our ancient civilization in Mesopotamia, especially in the Sumerian and Babylonian civilizations."
He added that "the high level of civilization that Japan has achieved in the fields of economy, construction, industry and technology was not a coincidence, but rather the result of strenuous efforts made by successive generations of the Japanese people, deriving determination and strength from Japan's ancient civilization," explaining that "Japan contributed to supporting the march of freedom and democracy in Iraq after 2003, and participated with its forces in maintaining security and stability in Muthanna Governorate, an unprecedented step that left a unique humanitarian impact on the residents of the governorate."
He stated that "the two countries share in supporting each other diplomatically in international forums and UN institutions," noting that "Japan provided grants and development loans to Iraq, which contributed to the construction and rehabilitation of 34 vital projects in various Iraqi cities and regions.
The most prominent of these projects is the establishment project, which is the most recent in the Middle East and the first in Iraq to convert oil waste into high-quality derivatives, which is being implemented by the Southern Refineries Company in cooperation with the leading Japanese company "JGC", and will provide thousands of job opportunities in Basra Governorate."
He stressed that "Iraq today faces new horizons of cooperation that carry promising opportunities thanks to its stability and development in the security and economic fields, which makes it a fertile and attractive environment for investment," calling on "leading Japanese companies to be a strategic partner in this new phase of Iraq's economic renaissance, inspired by the successful Japanese experience in development and progress."
Bahr al-Uloom expressed his "admiration for the Japanese development experience," pointing to "the similarities between the two countries in geopolitical challenges."
He explained that "Iraq seeks to benefit from the distinguished Japanese model by expanding areas of cooperation and exchange of expertise," explaining that "the investments of Japanese companies in Iraq are not just a strategic choice, but rather part of the modern economic vision adopted by Iraq under the leadership of Prime Minister Mohammed Shia al-Sudani."
Bahr al-Uloom pointed to "the remarkable growth in trade cooperation between the two countries in recent years," stressing that "Iraq seeks to enhance this cooperation to include larger projects that have a greater impact on the welfare of the two peoples and the stability of the region."
He announced "Iraq's desire to expand areas of partnership," calling on "Japanese companies and institutions to intensify their presence in Iraq." link
AJ : 🇮🇶How International Oil Companies (IOCs) Get paid.!!, 23 FEB
AJ
How International Oil Companies (IOCs) Get paid.
The $16 per barrel, outlined in Iraq’s 2025 budget amendment (approved February 2, 2025), is designated specifically for the international oil companies (IOCs) producing crude oil in the Kurdistan Region—like Hunt Oil (U.S.), HKN Energy (U.S.), Rosneft (Russia), DNO (Norway), Genel Energy (UK/Turkey), and Gulf
Keystone (UK).It’s not a payment to the Kurdistan Regional Government (KRG) itself but rather covers the production and transportation costs of these international oil companies IOCs operating under KRG licenses.How It Works
Purpose: The $16/barrel compensates IOCs for their operational expenses (drilling, extraction, transport), replacing the KRG’s previous direct payments, which have been in arrears since the Iraq-Turkey pipeline shut down in March 2023. This was a sticking point—IOCs like DNO and Genel had pushed for $21/barrel, while Baghdad initially offered $8, settling at $16 after negotiations.
Federal Oversight: Baghdad’s plan, via the Oil Ministry and SOMO (state oil marketer), is to pay these costs directly to the IOCs once exports resume through SOMO.
Revenues go into a federal treasury account (monitored by the Central Bank of Iraq), with the KRG getting its budget share afterward—not the $16 itself.
Contract Shift: This ties into Baghdad’s push to shift KRG’s production-sharing contracts (PSCs) to federal terms. The $16 ensures IOCs keep producing while aligning payments with SOMO’s export system, sidelining the KRG’s direct financial role.
Who Gets What
IOCs: Hunt, HKN, Rosneft, DNO, etc., get the $16/barrel for their costs, incentivizing them to agree to SOMO’s control. For example, DNO’s Tawke field or Gulf Keystone’s Shaikan output would see this as cost recovery.
KRG: Doesn’t pocket the $16—its cut comes from the federal budget (e.g., 12-13% of Iraq’s total revenue), based on exported oil volumes, not a direct slice of the $16.
Baghdad: Keeps the lion’s share of export profits after costs, reinforcing federal authority.
Implications
This setup means Baghdad deals with IOCs like Rosneft or Hunt Oil directly, using the $16 as a lever to enforce SOMO integration. The KRG’s role shrinks to a minority stakeholder (20-25% in most fields), with no control over the $16 payments. If the pipeline restarts, say next week, IOCs get paid Tuesday-ish from federal funds, not KRG coffers, under the current system for exports in Federal Iraq.
The United Nations announces its support for Iraq in recovering its smuggled funds and combating cross-border corruption, 23 FEB
The United Nations announces its support for Iraq in recovering its smuggled funds and combating cross-border corruption
The Deputy Representative of the Secretary-General of the United Nations, Ghulam Mohammad Ishaqzai, expressed his readiness today, Friday, to remove the obstacles that prevent Iraq from recovering its smuggled funds.
The head of the Federal Integrity Commission (Mohammed Ali Al-Lami), according to a statement by the Integrity Commission received by (Al-Mada), stressed "the importance of cooperation with international organizations to recover Iraq's smuggled funds, indicating that corruption and the smuggling of its proceeds have become problems that cross borders and continents and require international cooperation to limit them.
During his meeting with (Ghulam Mohammad Ishaqzai), Deputy Special Representative of the Secretary-General of the United Nations for Iraq, Al-Lami praised the programs launched by the organizations affiliated with the United Nations and their assistance to Iraq in various fields after 2003; to overcome the problems and dilemmas left by the dictatorial regime and to support state institutions to advance them after the damage they suffered after the change, noting that Iraq is one of the first countries to join the United Nations and the treaties and agreements emanating from it, including the United Nations Convention against Corruption.
Al-Lami expressed his "hope that international organizations would help Iraq recover its funds that were looted before 2003, and for which binding resolutions were issued by the UN Security Council, pointing to the establishment of the Iraq Fund Recovery Fund to recover all financial rights of the Republic of Iraq that were obtained by others through illegal means; as a result of the misuse of the Oil for Food Program, the blockade, smuggling, economic sabotage, or exploitation of the sanctions imposed on Iraq; to achieve financial gains at the expense of the Iraqi people."
He stressed the need to implement international resolutions and restore Iraq's money, in order to invest it in the reconstruction process, build infrastructure and achieve development.
For his part, Ghulam Mohammad Ishaqzai, Deputy Special Representative of the Secretary-General of the United Nations, expressed his "readiness to overcome the obstacles that prevent Iraq from recovering its smuggled funds, and to continue cooperating with the Iraqi oversight agencies to hold workshops and seminars to develop their staff and increase their expertise in the field of preventing, combating, and prosecuting corruption perpetrators."
He praised "the pioneering experiences of the Iraqi Integrity Commission, stressing the importance of establishing strategic partnerships with the Commission based on the experiences gained by the organizations affiliated with the United Nations in dealing with international files in various parts of the world. link
SANDY INGRAM CC HIGHLIGHTS NOTES, 23 FEB
SANDY INGRAM CC HIGHLIGHTS NOTES
Highlights
Summary
In a recent report, significant tensions between the United States and Iraq have emerged, primarily driven by the Trump Administration’s demands for Iraq to dismantle armed factions affiliated with Iran.
Over the past two weeks, the U.S. has communicated the urgency of disarming these groups, leading to an increase in sanctions against Iraqi banks—28 out of 44 are now on the sanctions list.
The administration’s focus is on disrupting the influence of Iranian-backed militias, particularly those involved in attacks against U.S. and Israeli targets.
This has intensified discussions around Iraq’s sovereignty and the potential for economic sanctions as a means of coercion. Iraqi officials are concerned about the implications of U.S. measures, especially in light of existing sanctions and the precarious political landscape. Despite pressure, the Iraqi government faces significant challenges in addressing the demands of U.S. officials, as many factions refuse to comply. The report emphasizes a complex political climate where both external pressures and internal dynamics contribute to the escalating situation.
- 📉 Escalating Sanctions: The U.S. has sanctioned 28 out of 44 Iraqi banks, highlighting the financial pressure on Iraq.
- 💥 Armed Factions Targeted: The Trump Administration demands the disarmament of Iranian-linked militia groups threatening U.S. interests.
- 🔄 Political Confrontation Looms: Iraqi officials warn of a potential political confrontation with the U.S. as demands intensify.
- ⚔️ Iran’s Influence: The U.S. is particularly focused on preventing Iranian supply of advanced weaponry to Iraqi factions.
- 📜 Sovereignty Concerns: Iraqi leaders express concerns over U.S. interference in their political and military decisions.
- ⚖️ Economic Pressures Expected: Anticipated economic sanctions may further complicate Iraq’s financial system and relations with Iran.
- 🏛️ Complex Political Landscape: Internal divisions among Iraqi political parties make compliance with U.S. demands challenging.
Key Insights
📊 Impact of Sanctions on Banking Sector: The U.S. sanctions against Iraqi banks significantly undermine the nation’s financial stability. With 28 banks on the list, the risk of economic collapse looms, especially as these banks play a critical role in financing the public and private sectors. The implications of such sanctions are profound, potentially leading to a liquidity crisis that could ripple through the entire economy.
⚖️ The Challenge of Disarmament: The dismantling of Iran-linked militias poses a substantial challenge for the Iraqi government, which lacks the power to enforce compliance effectively. Many factions operate independently, viewing the U.S. presence as an occupation. This disconnect between government authority and militia autonomy complicates efforts to implement U.S. directives, indicating a need for a more nuanced approach that respects Iraq’s sovereignty while addressing security concerns.
🔗 Iran’s Strategic Role: Iran’s influence in Iraq is pivotal, underscoring the geopolitical complexities at play. The Iranian-backed militias not only serve as military entities but also as political actors within Iraq. Any attempt to dismantle these factions must consider the broader implications for Iraq’s political stability and the delicate balance of power among various sectarian groups.
📈 Potential for Increased Conflict: The ongoing tensions and potential for U.S. sanctions may provoke a backlash from the armed factions, leading to increased violence against U.S. and allied interests. The factions’ history of retaliation, particularly in response to external pressures, raises concerns about a possible escalation of conflict, which could destabilize the region further.
💼 Economic Reforms and U.S. Interests: The U.S. is not only focused on disarmament but also on reforming Iraq’s financial systems to exclude Iranian influence. These reforms are viewed as essential for stabilizing the Iraqi economy and ensuring that U.S. interests are safeguarded. However, such measures may face significant resistance from entrenched political and economic interests aligned with Iran.
🏛️ Political Confusion in Iraq: The current political landscape in Iraq is marked by confusion and a lack of clear communication among leaders regarding the U.S. pressures. This disarray may hinder the government’s ability to respond effectively to both internal and external challenges. As Iraqi politicians grapple with these pressures, the absence of a unified strategy could lead to missteps that jeopardize national security.
🌍 International Implications: The situation in Iraq carries broader implications for U.S. foreign policy in the Middle East. As Congress considers imposing sanctions, the precedent set could affect U.S. relations with other nations in the region. Moreover, the U.S. approach to Iraq may influence how other countries perceive American commitment to supporting sovereign governments against external threats, particularly from Iran.
In summary, the pressures exerted by the Trump Administration on Iraq to dismantle Iranian-linked militias and the subsequent sanctions imposed on Iraqi banks reflect a significant shift in U.S.-Iraq relations.
The complex interplay of domestic political challenges, the influence of Iran, and the potential for increased conflict create a precarious situation for the Iraqi government, which must navigate these turbulent waters while maintaining national sovereignty and stability. The coming months will be crucial as U.S. policymakers decide on further actions in response to the evolving geopolitical landscape in Iraq.
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