ERBIL, Kurdistan Region of Iraq – Kurdistan Region President Nechirvan Barzani on Monday said the Kurdistan Regional Government’s (KRG) top priority at the moment is resolving the salary issues, also noting that “extensive negotiations” have been held with Baghdad to resume Kurdish oil exports.

The Iraqi government’s finance ministry in May decided to suspend funding the Kurdistan Region’s civil servant salaries, arguing that the Region had already exhausted its share of the annual budget in May. The two governments have been engaged in numerous meetings to address their disagreements over oil exports and domestic revenue.

A financial delegation from Erbil is currently in Baghdad for negotiations with relevant authorities in the Iraqi federal government over the disbursement of Kurdistan’s civil servants' June salaries.

“The priority of the KRG now is concerning how to fix the salary issue,” Barzani told reporters on Monday, adding “I personally believe that, God willing, this issue will be resolved soon.”

Sources from the KRG finance ministry and the Iraqi oil ministry told The New Region on Sunday that Erbil has agreed to hand over 50 percent of revenue from customs, border crossings, and airports to Baghdad to pave the way for financing June salaries.

According to the sources, the two governments’ disagreement over the handover of the Kurdistan Region’s local tax revenues is the only obstacle before the disbursement of the June salaries: Baghdad demands 100 percent of the revenue, while Erbil maintains that it is entitled to that revenue in accordance with the Budget Law.

When asked about the resumption of oil exports from the Kurdistan Region, Barzani said that Erbil and Baghdad are engaged in “very extensive negotiations” to restart the process.

“All our efforts aim to see oil flow from the Kurdistan Region’s pipes as soon as possible and exported,” he added.

Well-informed sources from the Iraq’s State Organization for Marketing of Oil (SOMO) and the federal oil ministry have told The New Region that the KRG and the Iraqi federal government have reached an understanding over resuming Kurdish oil exports, “with only some administrative measures left to restart the process.”

Sulaimani escalations

Forces affiliated with the Patriotic Union of Kurdistan (PUK) on Thursday night besieged the residence of Lahur Sheikh Jangi, the current leader of the People's Front political party and former PUK co-chair, under the pretext of carrying out a warrant for his arrest.

A standoff at Jangi’s residence in the Lalezar Hotel escalated into armed clashes between the two sides in the early hours of Friday, ultimately leading to Jangi’s arrest.

Speaking on the escalations, Barzani stated: “regardless of what happens, law must prevail.”

“What matters to us is that citizens’ lives and belongings must be protected, and what matters now is for law to take its course,” he added.

The PUK-affiliated Kurdistan Region Security Agency (Asayish) said that at least three security force members were killed and 19 others were wounded in the clashes. There are no confirmed reports on the number of casualties from Jangi’s side.