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We hope to resolve issues with Baghdad soon: PM Barzani

The New Region

Sep. 09, 2025 • 3 min read
Image of We hope to resolve issues with Baghdad soon: PM Barzani Kurdistan Region PM Masrour Barzani speaks to reporters at the 6th Real Estate Invest Expo in Erbil on September 9, 2025. Photo: Screengrab

Kurdistan Region PM Masrour Barzani said Erbil and Baghdad are "at the final stages" of reaching an understanding over non-oil revenues

 

ERBIL, Kurdistan Region of Iraq – Kurdistan Region Prime Minister Masrour Barzani on Tuesday said that they hope to resolve outstanding issues with the Iraqi federal government “as soon as possible,” noting that the negotiations over the handover of non-oil revenues have reached “the final stages.”

 

The Iraqi government and the Kurdistan Regional Government (KRG) have been at loggerheads over the management of the Kurdistan Region's oil fields and the disbursement of civil servant salaries for years. The latest episode occurred in May after Baghdad informed Erbil that they will halt funding the Region's civil servant salaries, arguing that the Region had already exceeded its annual budget share.

 

The two sides have held continuous negotiations since, aimed at permanently resolving their difference. The talks have resulted in agreements to disburse the Kurdistan Region’s May and June salaries, while no deals have been made for either July or August as of the writing of this article.

 

“We have said this and reiterated it many times: We hope these issues are resolved as soon as possible. But every time we see that the federal government presents a new issue, which we have always tried to resolve patiently,” the Kurdish premier told reporters.

 

An agreement was reached earlier in July between the two governments, whereby the Kurdistan Region agreed to export 230,000 barrels of oil through the federal government's State Organization for Marketing of Oil (SOMO), in addition to paying 120 billion Iraqi dinars in non-oil revenues to Baghdad as its share of the federal treasury, in exchange for salaries.

 

“Our delegations are engaged in continuous negotiations with the federal government’s delegations. Regarding non-oil revenues, we are at the final stages of reaching an understanding,” said Barzani.

 

The non-oil revenue is now the main point of contention between the two governments, with the KRG advocating for a lower figure for subsequent months; the Iraqi government, meanwhile, requests 100 percent of certain domestic revenue sources that will see the figure soar to nearly 200 billion dinars.

 

In regard to the resumption of oil exports, Barzani reiterated that Erbil has no issues with either Baghdad or the international oil companies (IOCs_, but rather the only obstacle now is that the IOCs are demanding “a guarantee” for their financial entitlements from Baghdad.

 

Baghdad and Erbil announced in late February that they reached an agreement to resume the Kurdistan Region’s oil exports, but the process has yet to restart, with international oil producers demanding payment surety, transparent implementation of Iraq’s budget law stipulations, and resolution of payments that are in arrears before resuming the work.


The halt in oil exports through the Ceyhan pipeline in recent years has dealt a major blow to Iraq and the Kurdistan Region, with over 30 billion dollars in lost revenue to date.

 

The Kurdish premier’s remarks came after he cut the ribbon on the sixth Real Estate Invest Expo, taking place at Sami Abdulrahaman Park’s Erbil International Fair.

 

Bargasht Akrayi, spokesperson for Kurdistan Region’s Investment Board, told The New Region that a total of 280 companies from 16 different countries are participating in this year’s exhibition.

 

The Kurdistan Regional Government (KRG) has increased efforts in recent times to diversify its sources of revenue and make the Region an appealing destination for international businesses to invest in.

 

Over 3,600 foreign companies are currently operating in the Kurdistan Region, according to official figures.

 

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