DUBAI, United Arab Emirates- Iraqi Prime Minister Mohammed Shia’ al-Sudani on Wednesday met with ambassadors from the European Union (EU) and the five permanent members of the United Nations Security Council, discussing an ongoing budget dispute with the Kurdistan Region and Iraq's role in regional affairs.

According to a press release issued by Sudani's office, the ambassadors in attendance praised Iraq’s leadership and welcomed its efforts to solve disagreements with the Kurdistan Regional Government (KRG) relating to Baghdad's decision to withhold funding from the Region for the remainder of 2025, having claimed that Erbil has exhausted its annual budget share.

Kurdish leaders have condemned the move as collective punishment, with Shakhawan Abdullah, the Iraqi parliament’s second deputy speaker and Kurdistan Democratic Party (KDP) member, affirming that Kurdish blocs will obstruct the operations of the legislature until the issue is resolved.

Sudani reportedly told the attendees that “Iraq’s diversity stands as a pillar of strength and internal cohesion, not a source of division or concern,” adding that his government "continues to address domestic issues using legal and constitutional frameworks to ensure justice and equality for all citizens."

Regarding regional issues, Sudani criticized Israel for blocking aid to Gaza, saying, “The occupation government’s prevention of humanitarian aid from reaching Gaza, aimed at perpetuating starvation, constitutes a form of genocide.” He said Iraq is helping “through legal, diplomatic, and humanitarian channels” and wants to avoid getting involved in any conflict.

He said Iraq is watching the talks between the US and Iran and hopes they lead to “a balanced and just agreement,” warning that “escalation will not resolve this issue.”

Sudani also said that Iraq supports the people of Syria and urged the country’s new leaders to “pursue an inclusive political process based on the principle of citizenship.”

The Iraqi prime minister continued by hailing the Arab Summit held in Baghdad in May, with the statement saying that “the Arab Summit... produced positive outcomes, decisions, and initiatives that contribute to advancing development and fostering stronger relations among Arab nations.” 

The statement noted that the ambassadors expressed their support for Iraq's efforts to protect minorities and improve living standards for its citizens, claiming that the EU delegates professed their desire to "expand economic and trade cooperation with Iraq.