Erbil Negotiations: Will Kurdistan's Salaries Save It from the Grip of the Oil Conflict?
The Baghdad delegation's talks in Erbil, which include Foreign Minister Fuad Hussein and Oil Minister Hayan Abdul Ghani, will begin with a decisive step toward resolving the Kurdistan Region's employee payroll crisis. The delegation has broad powers to sign a comprehensive agreement addressing the oil and financial disputes.
The video for this My FX Buddies Blog is below here:
On June 25, 2025, Kurdistan Regional Government Prime Minister Masrour Barzani announced that this visit came after his communication with the Iraqi Prime Minister and the Chief Justice of the Federal Court, stressing that a solution was on the horizon, with Baghdad committed to sending a high-level delegation to end the crisis.
The agreement proposes that the region hand over 280,000 barrels of oil per day and half of its non-oil revenues to Baghdad, in exchange for guaranteeing direct salary payments through the federal Ministry of Finance.
Tensions have been escalating in the region since Baghdad halted funding for May 2025 salaries, after the region exceeded its 12.67% share of the federal budget, according to Finance Minister Taif Sami.
The crisis escalated when Erbil signed two oil agreements with American companies to develop the Miran and Tophane-Kurdimir fields, which Baghdad considered a constitutional violation.
The move sparked protests in Sulaymaniyah, where teachers and doctors took to the streets demanding their salaries, which have been delayed for 42 days, and threatening comprehensive strikes that could paralyze the 2025-2026 academic year.
The region is suffering from a financial deficit of 823 billion dinars in 2024, despite receiving 598.5 billion dinars in non-oil revenues.
Barzani affirmed the region's commitment to registering 800,000 employees in the "My Account" project to facilitate electronic payroll disbursements, but technical delays have hampered implementation in Sulaymaniyah.
The United Nations and Western countries are pressuring Baghdad to resolve the crisis, warning of humanitarian and economic repercussions.
The Kurdistan Democratic Party (KDP) is threatening to boycott the political process if salaries are withheld until Eid al-Adha 2025.
Kurdish citizens remain the most prominent victims, as delayed salaries have paralyzed markets and deteriorated living conditions.
The regional government has pledged to secure internal salaries if negotiations fail, while employees are demanding that their salaries be deposited in federal banks to ensure transparency.
Kurdistan employees' salaries will be paid within the next two days.
An informed government source revealed, today, Sunday (June 29, 2025), that the federal government will pay May salaries to Kurdistan employees within the next two days.
The source told Baghdad Today, "The federal government will pay the salaries of the region's employees within the next two days, even before the oil agreement is finalized, for humanitarian purposes."
He added, "If an oil agreement is reached between Baghdad and Erbil, the audit and accounting department of the federal Ministry of Finance will review the lists sent by the regional Ministry of Finance, and within days, will release the June salaries."
He pointed out that "the federal government delegation pledged that the region's salaries would be paid monthly, along with those of employees in other Iraqi governorates, without a single day's delay, subject to the oil agreement and the delivery of 50% of domestic revenues, provided they are digitally deposited into the Ministry of Finance's bank account daily."
What are Baghdad's demands from Erbil to resolve oil and financial disputes?
conomic expert Nabil Al-Marsoumi revealed on Sunday the demands Baghdad has submitted to the Kurdistan Regional Government (KRG) aimed at resolving the financial and oil issues pending between the two parties .
Al-Marsoumi said in a Facebook post, seen by Al-Sa'a Network, that "Baghdad has asked the regional government to hand over 50% of non-oil revenues, estimated at approximately 300 billion dinars per month ."
He added, "Baghdad will pay $16 for every barrel produced by oil companies operating in the region ."
Al-Marsoumi confirmed that "there are difficulties hindering reaching a comprehensive agreement, the most prominent of which is Baghdad's refusal to settle the debts owed to foreign companies for oil produced in late 2022 and early 2023, which the region received but did not pay for ."
He continued, "We also demand that foreign companies provide guarantees for payment for past and future oil exports, and we demand that expected oil sales payments be transferred directly to foreign companies ."
He added, "There is an insistence by foreign companies on maintaining the current commercial terms and economic model signed between the companies and the region, which is subject to international arbitration ."
Last Friday, parliament member Shwan Mohammed predicted that a comprehensive agreement between Baghdad and Erbil would soon be reached, allowing the re-exportation of Kurdistan's oil through SOMO and resolving the months-long employee payroll crisis .
He explained that "the agreement includes exporting the region's oil through the State Marketing Organization (SOMO), with the federal Ministry of Finance responsible for paying the dues of the operating oil companies, while providing guarantees that no obstacles will be placed in the way of the process ."
He explained that "the success of this agreement will have a direct impact on the salaries file and pave the way for resolving the outstanding financial disputes between the two parties ."
The Kurdistan Union explains the reasons for the salary crisis in the region.
A leader in the Patriotic Union of Kurdistan (PUK), Ziyad Jabbar, revealed on Sunday that the reason for the salary crisis is the lack of a clear and binding agreement between the regional government and the federal government that would end it .
"The current crisis is one of the worst crises that the citizens of the Kurdistan Region have ever experienced, due to numerous complications that can only be resolved through a comprehensive oil agreement with Baghdad ," Jabbar said during a press conference monitored by Al-Sa'a Network .
He added, "Despite promises made by various parties that 2025 would mark the end of the salary delay crisis, the reality is the opposite. Citizens have not received their salaries for two consecutive months, representing a stifling crisis that impacts the daily lives of the region's people ."
He called for "concluding agreements that guarantee the rights of the citizens of the Kurdistan Region, free from partisan interests and narrow political stakes," stressing that "the Patriotic Union of Kurdistan supports any agreement that would alleviate the suffering of citizens and serve the interests of the people ."
The Kurdistan Regional Government's (KRG) employee salary crisis is one of the most contentious issues between Baghdad and Erbil, amid ongoing debate over oil exports, constitutional obligations, and fiscal policies
Baghdad agrees to pay salaries to Kurdistan Region employees under temporary understandings
Reports have revealed that the federal government will disburse May salaries to Kurdistan Region employees within the next two days. A source was quoted yesterday as saying, "The federal government will disburse salaries to the region's employees within the next two days, even before the oil agreement is finalized, for humanitarian purposes."
He added, "If the oil agreement is reached between Baghdad and Erbil, the Audit and Accounting Department of the Federal Ministry of Finance will review the lists sent by the Regional Ministry of Finance, and then, within days, will release the June salaries."
He continued, "The federal government delegation pledged that the region's salaries would be paid monthly along with the salaries of employees of other Iraqi governorates, without a single day's delay, subject to the oil agreement and the delivery of 50% of internal revenues, provided that they are digitally deposited daily into the Ministry of Finance's bank account." A high-level delegation from the regional government held a meeting with the Prime Minister's Office in Baghdad as part of talks aimed at resolving the issue of the region's oil exports. According to information, "the delegation is scheduled to later hold a meeting with the Iraqi Supreme Economic Council, and will also meet with officials from the Ministry of Oil and the State Oil Marketing Organization (SOMO), in a step prior to the announcement of anticipated agreements between the two sides related to regulating Kurdistan's oil exports." Last Thursday, the federal government delegation discussed most of the technical aspects related to the export process with the Ministry of Natural Resources. The current year's budget stipulates that the region is committed to delivering between 280,000 and 300,000 barrels of oil per day to SOMO, for marketing through international ports. However, despite the progress achieved, some obstacles remain to the signing of the final agreement, most notably objections from foreign oil companies operating in the region, which are demanding guarantees related to their financial rights. Sources indicate that "these companies are demanding two basic conditions before resuming exports: the first is the repayment of debts accumulated by the Iraqi government since 2023, amounting to approximately one billion dollars, and the second is the signing of a written agreement between the Kurdistan Regional Government and the Iraqi Ministry of Oil regulating the oil export process."
The meetings are expected to continue in the coming hours, amid anticipation of an official announcement revealing the details of the upcoming agreements between the two sides. Meanwhile, PUK leader Ziyad Jabbar affirmed his party's support for any agreement that would end the salary crisis, which he attributed to the lack of a clear and binding agreement between the regional government and the federal government. Jabbar said in a statement yesterday that "the current crisis is one of the worst crises that citizens in the region have experienced, due to many complications that can only be resolved through a comprehensive oil agreement with Baghdad." He stressed that "despite the promises made by various parties that 2025 would mark the end of the salary delay crisis, the reality reflects the opposite, as citizens have not received their salaries for two consecutive months, which represents a stifling crisis that affects the daily lives of the people of the region."
For its role in credit and anti-money laundering, Al-Ahli Bank of Iraq wins the "Fastest Growing Bank 2025" award.
The National Bank of Iraq announced that it has won the "Fastest Growing Corporate Bank in Iraq 2025" award from the International Finance Awards.
In the presence of Al-Sudani, the framework discusses the elections in a regular meeting.
The Coordination Framework, which brings together Shiite forces, held its weekly meeting on Sunday evening, attended by Prime Minister Mohammed Shia al-Sudani, to discuss the upcoming parliamentary elections.
An informed source told Shafaq News Agency, "The Coordination Framework held its regular weekly meeting, attended by the Prime Minister, to discuss the parliamentary elections and government measures regarding the electoral process."
It's worth noting that the Coordination Framework decided on April 21 to enter the elections with multiple lists, which would convene following the election results to form the "Coordination Framework" bloc, which includes all its members.
The next parliamentary elections are scheduled for November 11, according to a decision by the Iraqi Council of Ministers, with campaigning set to begin shortly beforehand.
.png)
Six months into the year, the Parliamentary Finance Committee calls on Al-Sudani to "expedite" the 2025 budget schedules.
On Sunday, June 29, 2025, Parliamentary Finance Committee Chairman Atwan al-Atwani called on Prime Minister Mohammed Shia al-Sudani to "expedite" the submission of the 2025 budget schedules.
A document issued by Al-Atwani to the Prime Minister, a copy of which was received by Al-Jabal, stated: “We reiterate the need to expedite the sending of the 2025 budget tables to the Iraqi Parliament for approval, signaling the start of legal government spending and disbursements, and enabling state institutions to fulfill their obligations, particularly with regard to releasing employee dues (bonuses, promotions, and transfers), and addressing the demands of the segments waiting for their rights to be included in this budget.”
Parliamentary Finance Committee: The delay in the budget schedules is unjustified, and the government is ignoring our communications.
Member of the Parliamentary Finance Committee, Faisal Hassan Sakr, confirmed today, Sunday, that the delay in sending the 2025 budget tables to the House of Representatives has no logical justification, noting that the government continues to ignore official correspondence requesting clarification of its position on the detailed tables.
Sakr said in a statement to the Al-Maalouma Agency, “The 2025 budget tables were delayed a lot, and the government should have sent them at the beginning of this year,” noting that “the fiscal year is coming to an end, and despite that, the tables are still missing, and we do not know anything about them yet.”
Sakr explained that "despite the adoption of the three-year budget with the aim of overcoming the problems of the annual budgets, the government has not yet taken the initiative to send the detailed tables to the House of Representatives."
He pointed out that “Parliament had previously sent several official letters to the government inquiring about the date of sending the tables and the details they included, but the Finance Committee has not received any response so far from the concerned authorities.
Iranian markets under pressure: The dollar jumps and the stock market plummets.
Foreign exchange rates in the Iranian market rose significantly on Sunday amid growing fears of a collapse of the "fragile" truce between Iran and Israel after 12 days of military escalation. This has sparked widespread concern in financial markets and negatively impacted investor confidence.
According to the latest data, the US dollar rose to 88,250 tomans, the euro reached 103,420, and the British pound rose to 119,570 tomans.
Meanwhile, the Tehran Stock Exchange suffered heavy losses as trading resumed on Saturday, following a nine-day hiatus due to the recent war. The general index fell by 62,548 points, closing at 2,922,000 points, marking one of its largest daily losses since 2020.
During the session, more than 99% of listed stocks, equivalent to 606 tokens, declined, while only seven tokens advanced. Net outflows from individual investors amounted to approximately 2.113 trillion tomans, while 356 billion tomans were withdrawn from equity funds and 150 billion tomans from fixed-income funds.
Financial experts believe that this sharp decline was not entirely surprising, as the downward trend began before the outbreak of war, following the failure of five rounds of negotiations between Iran and the United States in June, which increased uncertainty in the financial market.
Observers believe that the ceasefire announcement was not enough to reassure investors or stem the stock market's slide, especially given the lack of concrete steps from regulatory authorities to support the market or curb losses.
Iranian President: We are ready for comprehensive cooperation and to open a new page with the Gulf states.
Iranian President Masoud Pezeshkian announced on Sunday his country's readiness for comprehensive cooperation and to open a new page with the Gulf Cooperation Council.
During the cabinet meeting, Pezeshkian said that Iran is ready for comprehensive cooperation with the Gulf Cooperation Council, and that "through this path, we can open a new page in our relations in the region itself, given the urgent need to strengthen ties and develop cooperation among Islamic countries," according to the IRNA news agency.
The Secretary-General of the Gulf Cooperation Council, Jassim Mohammed Al-Budaiwi, condemned "in the strongest terms the missile attack launched by Iran against the State of Qatar."
Meanwhile, Anwar Gargash, diplomatic advisor to the UAE president, said on Saturday that Iran "is required to restore trust with its Gulf neighbors."
Doha was hit by an Iranian missile barrage last Monday evening. Tehran claimed that the attack was not targeting Qatar, but rather the US Al-Udeid airbase on Qatari territory.
The targeting of Al Udeid airbase came in response to the US bombing of nuclear facilities inside Iranian territory. Hours after this Iranian response, the US president declared a ceasefire and an end to the escalation between Iran and Israel, which had lasted 12 days.
SWIFT: Washington's weapon for blackmailing countries and strangling Iraq
Economic expert, Faleh Al-Zubaidi, confirmed today, Saturday, that the United States of America is using the global financial transfer system “SWIFT” as a tool for economic pressure on countries that do not align with its interests. He pointed out that Iraq has become one of the countries subjected to such pressures aimed at pushing Washington's agendas in the region.
Al-Zubaidi told Al-Maalouma, “SWIFT is an international financial network used to transfer funds between banks around the world. It is effectively subject to direct American control, which makes it a political tool in Washington’s hands to punish governments that reject its policies.”
He added, "The United States has used this system to punish a number of countries, such as Russia, Iran, and China, by denying them access to international financial transactions," noting that "Iraq today suffers from strict restrictions imposed by Washington through this system, in an attempt to pressure the Iraqi government to advance its interests."
Al-Zubaidi explained that "US dominance over SWIFT represents a clear violation of international economic standards and contradicts the principle of neutrality in financial transactions," warning that "the continuation of this situation gives Washington the upper hand in controlling Iraqi financial decisions, threatening the country's economic security."
It is noteworthy that MP Haider Al-Salami stressed that the real and radical solution to this crisis lies in establishing a national financial system completely independent of the global financial transfer system (SWIFT), including a bank and an electronic payment entity, operating under the supervision of the Iraqi state and with its full autonomy, similar to what countries such as Russia, Iran and China have taken to protect their financial systems from Western domination.
Gemini launches tokenized stock trading in the EU with Dinari
Miss the last episode of My FX Buddies? Catch it below:
Will Iraq Greenlight Kurdistan's Oil Again? Stay tuned... Big Oil Meeting
.jpeg)
No comments:
Post a Comment