Sunday, February 23, 2025
Trump chooses Baghdad: Kurdistan oil export or sanctions like Iran, 23 FEB
Trump chooses Baghdad: Kurdistan oil export or sanctions like Iran
Reuters revealed on Friday the details of American pressure exerted by the administration of President Donald Trump on the Iraqi government in order to speed up the resumption of the export of Kurdistan Region’s oil through the Turkish Jeyhan line, or to face economic sanctions as is the case with Iran.
Reuters quoted eight sources in Baghdad, Washington and Erbil, who have direct knowledge of the issue, as saying that “increasing pressure from the new US administration was a major driver behind the Iraqi oil minister’s announcement last Monday that exports from the region will resume next week.”
A rapid resumption of exports from Iraq’s semi-autonomous Kurdistan region would help offset the potential decline in Iranian oil exports, which Washington has pledged to cut to zero as part of Trump’s “maximum pressure” campaign against Tehran.
The oil flow would mark the end of a nearly two-year conflict that has reduced the flows of more than 300,000 barrels per day of the region’s oil through Turkey to global markets.
Iran considers its neighbor and ally Iraq vital to keep its economy on its feet amid sanctions. But Baghdad, a partner of both the United States and Iran, is worried that it will fall into the shairds of Trump’s policy of pressuring Tehran, the sources said.
Trump wants Iraqi Prime Minister Mohammed Shia al-Sudani to cut economic and military ties with Iran. Last week, Reuters reported that the Central Bank of Iraq prevented five other private banks from accessing the dollar at the request of the United States. Treasury.
Iraq’s announcement on the resumption of exports was hasty and lacked details on how to address technical issues that need to be resolved before restarting flows, four of the eight sources as well.
Iran exerts significant military, political and economic influence in Iraq through its powerful Shiite militias and the political parties it supports in Baghdad. But the growing U.S. pressure comes at a time when Iran has been weakened by Israel’s attacks on its regional proxies.
With the closure of the pipeline transporting crude oil from Kurdistan to the Turkish port of Ceyhan since 2023, the smuggling of Kurdish oil to Iran by truck has flourished. Six of the eight sources said the United States was urging Baghdad to limit this flow.
An Iraqi oil official familiar with crude truck shipments crossing to Iran said: “Washington is pressuring Baghdad to ensure the export of crude oil from the region to world markets through Turkey instead of selling it cheaply to Iran.”
While the closure of the Turkish pipeline has led to a rise in Kurdish oil smuggling through Iran, a larger network that some experts believe generates at least $1 billion a year for Iran and its proxies has flourished in Iraq since Sudanese took office in 2022, according to Reuters last year.
In this regard, two US administration officials confirmed that the United States asked the Iraqi government to resume the region’s exports, one of whom said that this step would help alleviate the upward pressure on oil prices.
Asked about the administration’s pressure on Iraq to open Kurdistan Regional oil exports, a White House official said: “It is important for regional security not only to allow our Kurdish partners to export their oil, but also help keep the price of gas down.”
The resumption of the region’s oil exports would help offset some of the losses in global supply from the decline in Iranian exports, but will cover only a fraction of more than 2 million barrels per day of crude oil and fuel shipped by Iran. However, Iran has proven to be brilliant in the past at finding ways to circumvent US sanctions on its oil sales.
While Turkey stopped the pipeline in March 2023 after the International Chamber of Commerce ordered Ankara to pay $1.5 billion to Baghdad in compensation for unauthorized exports between 2014 and 2018.
The sources told Reuters that there are still unresolved problems with payment, pricing and maintenance. Two-day talks in the city of Erbil this week failed to reach an agreement, sources said.
A source familiar with this matter said that the federal government wanted to restart exports without making commitments to the Kurdistan Regional Government on payments and without clarifying the payment mechanism.
Restarting could also cause problems at OPEC+, the Organization of the Petroleum Exporting Countries, as well as Russia and other allies, as Iraq is under pressure to comply with its pledge to cut production. Additional supplies from the Kurdistan Region of Iraq could be placed above OPEC+’s supply target.
An Iraqi official concluded by saying: “It is possible for Iraq to restart the pipeline and remain in compliance with the supply policy of OPEC+.”
https://www.shafaq.com/ar/سیاسة/ترامب-يخي-ر-بغداد-تصدير-نفط-كوردستان-و-عقوبات-مثل-يران
MAJEED: Trump is forcing Iraq to allow Kurdistan to start exporting oil plus pay the US oil companies their delayed payment this week, 23 FEB
MAJEED
Just a thought
Trump is forcing Iraq to allow Kurdistan to start exporting oil plus pay the US oil companies their delayed payment this week
Plus
Look what he did with Ukraine
Forcing that Fagioli to sign the deal for extracting minerals in Ukraine to repay $500 billion that was laundered during the fake war
He wants his money this week from Iraq before his real presidency celebration on March 4
Because that’s when US becomes Republican country
He wants to pay the debts with the $35 billion worth of Iraqi dinar he invested
Before March 4
Nechirvan Barzani talks about a historic step: Iraq will be more prosperous, 23 FEB
Nechirvan Barzani talks about a historic step: Iraq will be more prosperous
Kurdistan Region President Nechirvan Barzani stressed today, Saturday, that the path of development is a historic step towards building a more prosperous Iraq.
Barzani said in his speech during the Baghdad Dialogue Conference, “We support the development path project to strengthen Iraq as an effective state in the Middle East. We in the Kurdistan Region always believe that political and economic stability for all of Iraq is a national interest, and that true development cannot be achieved without integration between Baghdad and Erbil, as well as between Iraq and its surrounding countries in the region and the world.”
He added, "This conference emulates Iraq's vision for regional opening and integration, and the sustainability of Iraq requires cooperation and partnership, not conflict and restriction.
From this standpoint, the Development Road Project comes as an initiative and a historic step to build a more stable and prosperous Iraq on diverse economic foundations, regional openness, and integration with neighboring countries. link
NEWS ROOM WTH CHELLA CC HIGHLIGHTS, 23 FEB
NEWS ROOM WTH CHELLA CC HIGHLIGHTS
Highlights
Summary
In this week’s video, the hosts discuss a range of positive developments in Iraq’s economy, inspired by Chella Smith’s weekly news roundup.
Despite the common perception of Iraq as a conflict-ridden nation, the report highlights the country’s ambitious efforts towards economic reform and global integration.
Key topics include the modernization of Iraq’s banking system, the potential resumption of oil exports from the Kurdistan region, strengthening U.S.-Iraq relations, and the launch of national bonds aimed at funding development projects.
Additionally, Iraq’s commitment to energy independence and food security through participation in global events are discussed. The video emphasizes the importance of addressing internal challenges, such as security issues and political instability, while also recognizing the country’s strengths, such as its young population and natural resources.
- 🌍 Modern Banking Initiatives: Iraq is working to modernize its banking system to attract foreign investment and build a stable financial environment.
- 🛢️ Oil Export Resumption: The U.S. encourages Iraq to resume oil exports from the Kurdistan region, which could stabilize global oil prices amid Iranian sanctions.
- 🤝 Strengthening U.S.-Iraq Cooperation: High-level discussions aim to enhance long-term cooperation in security and economic development.
- 💰 Launch of National Bonds: Iraq has issued $1.5 billion in national bonds to fund development projects, reducing reliance on foreign aid.
- ⚡ Energy Independence Efforts: Iraq is investing in refining capacity and gas exploration to become less dependent on energy imports.
- 🌾 Food Security Initiatives: Iraq’s participation in the Gold Food 2025 event highlights its agricultural potential and efforts to diversify its economy.
- 🔍 Addressing Internal Challenges: The video underscores the need for political stability and anti-corruption measures to support economic growth.
Key Insights
📈 Modernizing the Banking System: The push for a stronger banking system led by Prime Minister Sudani’s financial adviser reflects Iraq’s commitment to creating a transparent financial environment. This modernization is crucial for attracting foreign investments and establishing a robust economic foundation. The Central Bank of Iraq is collaborating with international institutions to improve financial infrastructure, which enhances trust and confidence in the system.
🌐 Geopolitical Implications of Oil Exports: The potential resumption of oil exports from the Kurdistan region carries significant geopolitical ramifications. It could alleviate the impact of U.S. sanctions on Iranian oil and stabilize global prices. However, technical challenges and OPEC compliance must be navigated carefully to avoid disrupting the balance in global oil markets.
🤝 Long-Term Cooperation with the U.S.: The dialogue between Iraqi Prime Minister Sudani and U.S. Senator Elissa Slotkin highlights the importance of U.S.-Iraq relations in fostering economic development and security. This partnership not only provides Iraq with support from a major global power but also emphasizes the shared responsibility in achieving sustainable growth.
💡 Funding National Development through Bonds: The issuance of national bonds worth $1.5 billion signifies a strategic approach to funding development projects without over-relying on foreign loans. This initiative empowers Iraq to take charge of its financial future, allowing both domestic and international investors to participate in the country’s growth.
🌱 Pursuing Energy Independence: Iraq’s investment in refining capacity and gas exploration aims to bolster energy independence and reduce reliance on imports. This strategic move positions Iraq to meet the growing global demand for natural gas while also enhancing its economic resilience.
🌾 Leveraging Agricultural Potential: Iraq’s participation in global food business events illustrates its efforts to diversify the economy and capitalize on its agricultural strengths. By showcasing its products and seeking investment opportunities, Iraq aims to become a significant player in the global food market, further enhancing economic stability.
⚠️ Navigating Internal and External Challenges: While the prospects for Iraq’s economy are promising, challenges such as security threats, political instability, and corruption remain significant hurdles. Addressing these issues is vital for attracting foreign investment and ensuring that economic growth benefits all Iraqis, not just a select few.
In conclusion, the video presents an optimistic view of Iraq’s economic landscape, emphasizing ongoing reforms and strategic initiatives aimed at fostering growth and stability. While challenges persist, the potential for Iraq to emerge as a regional economic power is evident, provided it can navigate its internal complexities and leverage its abundant resources effectively.
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