Baghdad extends its hand, and Kurdistan salaries are knocking at the door at the beginning of the week - Urgent
link Yesterday, 17:45 so 07/18/25
An informed source revealed, today, Friday (July 18, 2025), the date for sending the salaries of Kurdistan Region employees and their funding by the federal government.
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The source told Baghdad Today, "The Kurdistan Region is scheduled to receive funding of 952 billion dinars, starting next Sunday, to pay May salaries."
He added, "The May lists are ready, and June salaries will be audited next week, with payouts expected within a full week at most."
Al-Lami: The federal government's decision regarding the region's oil is a victory for the constitution and a step toward justice and transparency.
MP Ali Saadoun Al-Lami praised the recent Cabinet decision regarding Kurdistan Region salaries, stressing that the decision represents a "historic step toward establishing the principle of fairness in the distribution of national wealth."
Al-Lami explained in an interview with “Jarida Platform” that “the decision stipulates that the region hand over its entire oil production to the federal state oil company (SOMO), specifying precise quantities for receipt and export, and canceling any illegal exceptions previously granted, in addition to obligating the region to pay its share of non-oil revenues.”
He pointed out that "the decision also includes the formation of federal committees specialized in monitoring, auditing, and localizing spending and salaries, and linking the disbursement of salaries to the regional government's full commitment to delivering oil."
Al-Lami added, "We in the House of Representatives consider this step a victory for the constitution, and we affirm our full support for the government in implementing the decision in all its details without any compromise, in order to preserve the rights of the people of the south and center, who have long suffered from the lack of justice in the distribution of wealth."
He concluded his statement by stressing that Parliament will have an effective oversight role to accurately monitor the implementation stages, ensuring the rights of all Iraqis without exception are protected.
Iraqi Cabinet Approves Measures on Kurdish Oil Delivery
The Iraqi Cabinet, headed by Prime Minister Mohammed Shia Al-Sudani, held an emergency session on Thursday and issued a series of binding decisions regarding oil production and financial coordination with the Kurdistan Regional Government (KRG).
In a major development, the Cabinet approved the immediate transfer of all oil produced in the Kurdistan Region to Iraq's State Oil Marketing Organization (SOMO) for export. The federal government will provide the KRG with an advance of $16 per barrel (in-kind or in cash), based on a minimum delivery of 230,000 barrels per day (bpd), with any additional production to be included under the same mechanism.
Current production stands at 280,000 bpd, of which 50,000 bpd is reserved for local consumption within the Region. The remaining 230,000 bpd, along with any future increases, will be delivered to SOMO. Should exports stop for any reason, the KRG must deliver the full quantity to the Federal Ministry of Oil instead.
The KRG will also be responsible for the production and transport costs of the 50,000 bpd used locally, while revenues from sales of refined products will be transferred to the federal treasury after deducting those costs.
Additional financial decisions included:
- The KRG must deliver 120 billion Iraqi dinars as a preliminary estimate of May's non-oil revenue share.
- A joint auditing team will verify and classify non-oil revenues from May 2025 onward.
- A new joint committee will oversee the localisation of salaries in the Region within three months, as required by a federal court ruling.
- A separate team will assess any excess in actual spending relative to the KRG's budget share for 2023-2025.
- May salaries for KRG employees will be disbursed after SOMO confirms receipt of the 230,000 bpd via the Ceyhan terminal.
All timelines specified in this resolution are effective from the date of the Cabinet's approval.
Parliamentary Finance Committee: OPEC informed SOMO that 280,000 barrels smuggled from the region are counted against Iraq's share.
The head of the Parliamentary Finance Committee, MP Atwan al-Atwani, confirmed on Friday that OPEC informed the State Oil Marketing Organization (SOMO) that approximately 280,000 barrels of oil smuggled daily from the Kurdistan Region are counted as part of Iraq's quota.
Al-Atwani said in a televised interview followed by ( IQ ): "The region is smuggling oil and exporting about 280,000 barrels per day in an undeclared manner. A message arrived from OPEC to SOMO stating: 'We are receiving oil from your side. It is true that it is not in your name, but it is your oil.' It is estimated at about 280,000 barrels per day."
The MP pointed out that "our share has been reduced. We are now exporting about 3.2 million barrels per day, but this smuggled oil from the region is counted within the amount allocated to Iraq, and therefore is considered part of the revenue reduction."
Sources say Iraq's Kurdish oil exports not resuming soon, despite earlier statement
No preparation yet for pipeline restart, sources say
A restart of Iraq's Kurdish oil exports is not imminent, sources close to the matter said on Friday, despite Iraq's federal government saying on Thursday that shipments would resume immediately.
Baghdad and the Kurdistan Regional Government have been in negotiations since February to end a stand-off that has halted flows from the north of the country to Turkey's port of Ceyhan. The KRG was producing about 435,000 barrels per day (bpd) before the pipeline closure in March 2023.
On Thursday the federal government said that Iraqi Kurdistan would resume oil exports immediately through the pipeline to Turkey despite drone attacks that have shut down half of the region's output.
But on Friday a source at APIKUR, a group of oil companies working in Kurdistan, said that a restart depended on the receipt of written agreements. Another at KAR Group, which operates the pipeline, said that no preparations had been made for a restart.
Baghdad and the companies have not yet agreed how to restart the exports, a KRG government source said, while a source at Turkey's Ceyhan said there was also no preparation at the terminal for a restart of flows.
On Thursday, a statement from KRG Prime Minister Masrour Barzani said the government had approved a joint understanding with the federal government and it was awaiting financial details.
Similar agreements in the past failed to secure a resumption in exports and it remains unclear if this deal will succeed.
Oil companies working in Kurdistan have previously demanded that their production-sharing contracts should remain unchanged and their debts of nearly $1 billion be settled under any agreement.
On Friday Genel Energy and Gulf Keystone Petroleum declined to comment, while DNO, Hunt Oil and HKN Energy did not immediately respond to requests for comment.
Drone attacks
Oilfields in Iraqi Kurdistan have been attacked by drones this week, with officials pointing to Iran-backed militias as the likely source of the attacks, although no group has claimed responsibility.
They are the first such attacks on oilfields in the region and coincide with the first attacks in seven months on shipping in the Red Sea by Iran-aligned Houthi terrorists in Yemen.
On Thursday a strike hit an oilfield operated by Norway's DNO in Tawke, the region's counter-terrorism service said.
It was the week's second strike on a site operated by DNO, which operates the Tawke and Peshkabour oilfields in the Zakho area that borders Turkey.
No casualties have been reported, but oil output in the region has been cut by between 140,000 bpd and 150,000 bpd, two energy officials said.
Iraq’s Kurdish oil exports restart is not imminent
Baghdad and the companies have not yet agreed how to restart the exports, a KRG government source said
Oilfields in Iraqi Kurdistan have been attacked by drones this week
BAGHDAD/LONDON: A restart of Iraq’s Kurdish oil exports is not imminent, sources close to the matter said on Friday, despite Iraq’s federal government saying on Thursday that shipments would resume immediately.
Baghdad and the Kurdistan Regional Government have been in negotiations since February to end a stand-off that has halted flows from the north of the country to Turkiye’s port of Ceyhan. The KRG was producing about 435,000 barrels per day (bpd) before the pipeline closure in March 2023.
On Thursday the federal government said that Iraqi Kurdistan would resume oil exports immediately through the pipeline to Turkiye despite drone attacks that have shut down half of the region’s output.
But on Friday a source at APIKUR, a group of oil companies working in Kurdistan, said that a restart depended on the receipt of written agreements. Another at KAR Group, which operates the pipeline, said that no preparations had been made for a restart.
Baghdad and the companies have not yet agreed how to restart the exports, a KRG government source said, while a source at Turkiye’s Ceyhan said there was also no preparation at the terminal for a restart of flows.
On Thursday, a statement from KRG Prime Minister Masrour Barzani said the government had approved a joint understanding with the federal government and it was awaiting financial details.
Similar agreements in the past failed to secure a resumption in exports and it remains unclear if this deal will succeed.
Oil companies working in Kurdistan have previously demanded that their production-sharing contracts should remain unchanged and their debts of nearly $1 billion be settled under any agreement.
On Friday Genel Energy and Gulf Keystone Petroleum declined to comment, while DNO, Hunt Oil and HKN Energy did not immediately respond to requests for comment.
DRONE ATTACKS
Oilfields in Iraqi Kurdistan have been attacked by drones this week, with officials pointing to Iran-backed militias as the likely source of the attacks, although no group has claimed responsibility.
They are the first such attacks on oilfields in the region and coincide with the first attacks in seven months on shipping in the Red Sea by Iran-aligned Houthi militants in Yemen.
On Thursday a strike hit an oilfield operated by Norway’s DNO in Tawke, the region’s counter-terrorism service said.
It was the week’s second strike on a site operated by DNO, which operates the Tawke and Peshkabour oilfields in the Zakho area that borders Turkiye.
No casualties have been reported, but oil output in the region has been cut by between 140,000 bpd and 150,000 bpd, two energy officials said.
kurdistan oil exports not expected to resume soon despite recent Baghdad-Erbil agreement
The resumption of oil exports from the Kurdistan Region is not imminent, as no preparations have been made for a restart, and international oil companies are insisting on a formal written agreement before operations can resume, Reuters reports, citing sources close to the matter.
On Friday, Reuters cited a source from Kar Group—the operator of the Iraqi-Turkey Pipeline (ITP)—who confirmed that no steps have been taken toward restarting oil exports. This comes despite the Iraqi government’s announcement on Thursday that exports, halted for over two years, would resume immediately.
Meanwhile, a source from the Association of the Petroleum Industry of Kurdistan (APIKUR), which represents international oil companies in the region, told Reuters that oil exports will only resume upon receipt of a formal written agreement guaranteeing past dues and future payments.
Negotiations between Baghdad and Erbil have been ongoing since February to end the standoff that has halted crude flows from the Kurdistan region to Turkey’s Mediterranean port of Ceyhan.
According to Reuters, prior to the pipeline’s closure in March 2023, the Kurdistan Regional Government (KRG) was producing approximately 435,000 barrels per day (bpd).
In an extraordinary session on Thursday, the Iraqi Council of Ministers approved a landmark agreement with the KRG aimed at resolving disputes over salaries and oil dispute. The agreement requires the KRG to immediately deliver at least 230,000 bpd to Iraq’s state Oil Marketing Organization (SOMO) for export.
The council added that Baghdad will pay $16 per barrel — either in cash or kind — under the amended federal budget law, marking an increase from the previous $6 per barrel Baghdad insisted to pay, but remains $10 less than the amount the KRG had paid to oil companies operating in the Kurdistan Region.
“APIKUR member companies stand ready to resume exports as soon as written agreements are executed honoring existing contracts governed by international law,” said Myles B. Caggins III, spokesperson for the association, earlier this week.
Oil exports from the Kurdistan Region via Turkey’s Ceyhan port remain halted following a ruling by the Paris-based International Court of Arbitration, which determined that Turkey violated a 1973 treaty by permitting these exports without Baghdad’s approval.
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Iraq uncovers source of drone attacks, vows legal action
A high-level Iraqi investigation has identified the source and perpetrators of a series of suicide drone attacks that targeted key military radar sites across the country, confirming that the drones were launched from within Iraq using foreign-made equipment.
According to a statement issued Friday by Sabah al-Numan, spokesman for the Commander-in-Chief of the Armed Forces, the findings came after a directive from Prime Minister Mohammed Shia al-Sudani to form a committee of senior officers and technical experts to examine the recent attacks on multiple air defense systems.
The investigation revealed that "the origin of the drones used in the attacks was identified," and that they had been “equipped with warheads of varying weights and manufactured outside Iraq.” However, their launch points were located within Iraqi territory, the statement said.
“All the suicide drones used in the attacks were of the same type, clearly indicating a single executing party,” the spokesman added.
Security and intelligence services also analyzed the drones’ control and communication systems, allowing them to gather detailed technical data and confirm the operational methods behind the assaults. The statement noted that “the entities involved in planning and carrying out these hostile operations were identified,” though no specific group or actor was named.
“These cowardly acts of aggression represent a blatant violation of national sovereignty,” the statement read. “No party, whether domestic or foreign, will be permitted to undermine Iraq’s security and stability.”
The spokesman stressed that legal measures will be taken against all those involved, and that the case will be referred to the Iraqi judiciary. “The security and military leadership affirms that it will not tolerate any threat to the safety and security of the Iraqi Armed Forces or the assets of the Iraqi state,” he said.
The wave of drone attacks began in June and included strikes on radar stations located at several military bases and airports, including facilities used to monitor Iraqi airspace. Some attacks also targeted oil infrastructure in the Kurdistan Region.
Joint Operations: Targeting oil facilities undermines Iraq's stability efforts.
The Joint Operations Command confirmed on Friday that targeting oil facilities, bases, and camps undermines efforts to stabilize Iraq.
The command said in a statement, "Under the direction of the Commander-in-Chief of the Armed Forces, the planning of the Joint Operations Command, and with field supervision by the head of the Counter-Terrorism Service and field commanders, and in coordination with the Western Nineveh and Salahuddin Operations Command and the leadership of the Popular Mobilization Forces, security forces have launched a large-scale search operation that included numerous locations in the Hatra Desert in the western Nineveh and Salahuddin sectors, as well as a large number of warehouses, valleys, and caves."
It added, "This operation aims to verify and follow up on important information related to thwarting intentions and attempts to target security forces and vital targets in the country."
It stressed, "The recent targeting of oil facilities and fields, and some attempts to target bases and camps, are a heinous and dangerous attack that undermines all efforts aimed at stabilizing Iraq and campaigns for construction and development. The security services will pursue all those who tamper with the country's security, capabilities, and supreme interests, or those cooperating with them, and bring them to justice to receive their just punishment."
Announcing the results of the investigations into the targeting of Iraqi armed forces sites.
Sabah al-Numan, the spokesman for the Commander-in-Chief of the Armed Forces, announced today, Friday, the results of the investigation into the targeting of Iraqi radar sites, confirming that the drones were launched from within Iraqi territory.
Al-Numan said in a statement received by Al-Da’i News that “based on the directives of the Commander-in-Chief of the Armed Forces, Mohammed Shia al-Sudani, regarding the formation of a high-level investigative committee that includes senior officers and specialists, to look into the targeting incidents that affected a number of radar sites belonging to the Iraqi Armed Forces, through the use of suicide drones at simultaneous times, targeting defense systems in several military bases inside the country, and after precise and intensive security, intelligence and technical efforts, the investigations resulted in reaching important and decisive results, most notably:
- Identifying the origin of the drones used in the attacks, which were found to carry warheads of different weights and manufactured outside Iraq.
- Precisely monitoring the launch locations of these drones, and it was proven that they launched from specific locations inside Iraqi territory.
- Uncovering the parties involved in carrying out and coordinating these hostile operations.
- Conducting a comprehensive technical analysis of the control and communication systems used in operating the drones, which enabled intelligence agencies to collect accurate data that supported the results of the investigation.
- The investigative committee confirmed that all drones "The suicide drone used in the targeting is the same type, which clearly indicates that the perpetrators are the same,"
he added. "Based on the above, the security and military leadership affirms that they will not tolerate any threat targeting the security and safety of our armed forces and the capabilities of the Iraqi state. Legal measures will be taken against all those involved, and they will be referred to the fair Iraqi judiciary to receive their punishment in accordance with the law."
He continued: "These cowardly, aggressive attacks constitute a blatant violation of national sovereignty, and no party, internal or external, will be allowed to undermine Iraq's security and stability."
Iraq reveals the parties involved in targeting radar sites.
Sabah al-Numan, the spokesman for the Commander-in-Chief of the Armed Forces, announced today, Friday, the results of the investigation into the targeting of Iraqi radar sites, confirming that the drones were launched from within Iraqi territory.
Al-Numan said in a statement received by (Al-Youm News), "Based on the directives of the Commander-in-Chief of the Armed Forces, Mohammed Shia Al-Sudani, regarding the formation of a high-level investigative committee that includes senior officers and specialists, to look into the targeting incidents that affected a number of radar sites belonging to the Iraqi Armed Forces, through the use of suicide drones at simultaneous times, targeting defense systems in several military bases inside the country, and after precise and intensive security, intelligence and technical efforts, the investigations resulted in reaching important and decisive results, most notably:
- Identifying the origin of the drones used in the attacks, which were found to carry warheads of different weights and manufactured outside Iraq.
- Precisely monitoring the launch locations of these drones, and it was proven that they launched from specific locations inside Iraqi territory.
- Uncovering the parties involved in carrying out and coordinating these hostile operations.
- Conducting a comprehensive technical analysis of the control and communication systems used in operating the drones, which enabled the intelligence agencies to collect accurate data that supported the investigation results.
- The investigative committee confirmed that all drones "The suicide drone used in the targeting is the same type, which clearly indicates that the perpetrators are the same,"
he added. "Based on the above, the security and military leadership affirms that they will not tolerate any threat targeting the security and safety of our armed forces and the capabilities of the Iraqi state. Legal measures will be taken against all those involved, and they will be referred to the fair Iraqi judiciary to receive their punishment in accordance with the law."
He pointed out that "these cowardly, aggressive attacks constitute a blatant violation of national sovereignty, and no party, internal or external, will be allowed to undermine Iraq's security and stability."
Government advisor: Strategic Framework Agreement an opportunity to obtain comprehensive exemption from Trump tariffs
Iraq's "crisis" budget: a recurring deficit and a crisis with no end in sight in an increasingly fragile economy.
Temporary solutions
Warnings are renewed about Iraq's 2025 budget deficit crisis and the country's continued near-total dependence on oil as the primary source of public revenue. This comes amidst global market volatility and declining prices, which increases the risk of a widening deficit gap.
Economic expert Ahmed Al-Tamimi confirmed during his interview with Baghdad Today, today, Friday (July 18, 2025), that “the initial expectations for the upcoming budget indicate the continuation of the financial deficit due to a number of intertwined factors, most notably the decline in global oil prices, which represents more than 90% of total revenues, in addition to the continuous increase in operating spending, especially in the salaries item, along with a clear weakness in diversifying non-oil sources of income.”
Al-Tamimi explained that "dealing with this deficit requires practical solutions, starting with reforming the tax system, expanding the tax base, and working to collect taxes from informal sectors. He also emphasized enhancing state revenues by improving the efficiency of border management to combat smuggling and corruption, and increasing the collection of state services such as electricity, water, and municipal taxes in a fair and orderly manner."
The roots of this crisis lie in the structure of the Iraqi economy, which is based on rentier revenues. This leaves its financial balance sheets vulnerable to global market fluctuations. Moreover, successive governments have so far failed to achieve a real breakthrough in diversifying income sources and activating non-oil productive sectors.
Economists believe that addressing the fiscal deficit is not limited to increasing revenues, but rather requires a radical overhaul of public spending. This includes reviewing unnecessary salaries and allocations, reducing waste, eliminating indiscriminate subsidies and replacing them with targeted subsidies for deserving groups, and regulating new investment projects until the fiscal situation stabilizes, with a focus on projects with economic feasibility.
Al-Tamimi, speaking to Baghdad Today, stressed the "need to reactivate the Financial Stability Fund, also known as the Sovereign Savings Fund, to use oil surpluses to cover the deficit when prices drop, while supporting productive local sectors such as agriculture and industry, to reduce the import bill and increase job opportunities, in addition to combating corruption, strengthening governance, and activating the oversight system, specifically the role of the Financial Supervision Bureau."
Economic observers believe that Iraq is currently faced with two choices: either pursue serious economic reforms that address the structural imbalance in its revenue and expenditure structure, or continue with temporary solutions, such as domestic and foreign loans. This will keep the country hostage to the volatility of oil markets and deepen its financial fragility in any future crisis.
Economists agree that Iraq's budget deficit is no longer just a number on the final accounts. Rather, it has become part of a structural problem in economic management, requiring urgent solutions that go beyond traditional tools and focus on comprehensive reform that redraws the revenue map and establishes a diversified and sustainable economy.
Rafidain Bank launches electronic inquiry service via the "Aur" platform.
Rafidain Bank has launched an electronic inquiry service via the government's "Aur" platform, enabling customers to inquire online about a range of basic banking topics.
The bank noted in a statement that "the electronic inquiry service allows citizens to access accurate banking information easily, securely, and quickly, enhancing the efficiency of service interaction and saving time and effort. The service covers a range of basic banking topics, including:
- Salaries and Deductions: View salary disbursement details, deduction mechanism, and follow-up on related financial data.
- Electronic advances: Inquire about the status of the electronic advance, inclusion stages, and statements of the amounts granted.
- Electronic cards: Follow up on the status of the reservation or lift the reservation from the card and know the reasons for suspension.
- Verification of issuance: ensuring the validity of documents issued by the bank, whether for financial or administrative transactions.
- Data on using electronic services: View the history of interaction with the bank’s digital services.
- Reverse debit amounts: Track requests for refunds of amounts deducted from electronic cards.
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