ERBIL, Kurdistan Region of Iraq – Negotiating delegations from Erbil and Baghdad on Thursday met in the Iraqi capital to iron out the final details of an agreement on the outstanding issues between the two governments, relating particularly to the issues of the handover of the Kurdistan Region's domestic revenues to the federal government and of the resumption of the Region’s oil exports.

The meeting yielded no solutions to the issues between the two governments regarding the Kurdistan Region's handover of domestic non-oil revenues and resuming oil exports, The New Region has learned.

The New Region understands that the federal government insists that the Kurdistan Regional Government (KRG) hand over 100 percent of the domestic revenue generated in the Region.

Erbil and Baghdad are in agreement over the protocol for resuming oil exports, however, the International Oil Companies (IOC) operating in the Region require guarantees that they will be compensated 16 US dollars for each barrel of oil produced, a requirement that Baghdad has refused to guarantee as of the time of writing this article.

The Kurdish delegation’s visit was preceded by another delegation that left for Baghdad on Tuesday to discuss solutions with representatives from the federal government toward the same issues, focusing mainly on the resumption of oil exports.

Iraqi Finance Minister Taif Sami, in a letter addressed to the KRG in late May, claimed that Erbil had already exhausted its share of the 2025 federal budget, saying that the finance ministry will no longer fund the Region’s civil servant salaries; as a result, government employees in the Kurdistan Region have gone months at a time without receiving their due payment.

Civil servants in the Region received their salaries for June in September, while July and August salaries have yet to be funded by the Iraqi government. The KRG has time and again reiterated that they have “more than fulfilled” their obligations relating to finding solutions with Iraqi authorities.

CORRECTION: This title of this piece was updated at 20:07 from 'KRG, Baghdad negotiating delegations ink oil export resumption agreement' to the current version in light of information later obtained