Iraq and Iraqi Kurdistan finalize imminent deal to resume oil exports

2 Apr. (EUROPE PRESS) –

The Iraqi government and the authorities of the semi-autonomous Kurdistan region are already closing the last fringes of an agreement that will allow the resumption of Kurdish crude oil exports to Turkey after a recent ruling by a Paris arbitration court in favor of Baghdad on the crude oil transit rights.

The ruling by the International Chamber of Commerce, based in the French capital, found that Turkey had irregularly taken advantage of an Iraqi oil pipeline by importing oil from Kurdistan, prompting the immediate suspension of transit until a new understanding was reached.

Sources involved in the negotiations have explained to the Kurdish agency Rudaw that the new agreement could be closed next Tuesday and put an end to a paralysis that has contributed to recent increases of up to 5.7 percent in global oil prices, absolutely essential for the Kurdish economy.

Rudaw’s sources explain that the rapid achievement of the agreement is due to the interest of the Iraqi prime minister, Mohamed al Sudani, to normalize relations with Kurdistan after years of tensions over the exploitation of Kurdish crude.

Last month, for example, Erbil and Baghdad finally reached a budget agreement that led to the adoption of General Budgets in the country, after a year of emptiness.