Iraq and the Kurdistan Region reached an oil agreement
The Iraqi Council of Ministers voted on two decisions on the mechanism of dealing with foreign oil companies and the issue of oil in the Kurdistan Region.
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The Kurdistan Regional Government (KRG) and the Iraqi Federal Government have reached an agreement on the handover of Kurdistan Regional Government (KRG) oil to Baghdad. According to the new agreement, only 50,000 barrels of oil produced in the Kurdistan Region will be recycled for domestic consumption, while the rest will be handed over directly to SOMO.
The Iraqi Council of Ministers has welcomed the latest steps taken by the Oil Ministry and the Ministry of Natural Resources to resume oil exports.
The Council of Ministers decided that the oil extraction fee for foreign companies, which is set at $ 16 per barrel, will no longer
be paid
in cash and instead, the amount of oil equivalent to their financial entitlements and companies themselves will be responsible for selling it It is oil in the markets.
Second: Approval of a tripartite agreement between the Kurdistan Region, Baghdad and companies:
The Iraqi Council of Ministers gave initial approval to conclude a tripartite agreement between the Kurdistan Regional Government, the Iraqi Federal Government and foreign oil companies.
The condition for implementing this decision is that the Iraqi government submits the contract to the advisory committee of the Iraqi Oil Ministry. The committee is expected to give its final answer within the next 48 hours, so that the tripartite deal can be formalized and go into effect.
Apicor to Rudaw: Companies receive oil instead of their $16 due.
Kurdish official in Baghdad: Iraqi government is only killing time on the issue of salaries
Bakhtiar Haji, Director General of Communications and Follow-up Affairs of the Kurdistan Regional Government (KRG) Representation in Baghdad, said that what Baghdad demands from Erbil regarding the salaries of the Kurdistan Regional Government (KRG) employees is outside the constitution and law.
There are two obstacles to resolving the issue : oil exports, which are in the final stages of resolution, and non-oil revenues. The Iraqi Council of Ministers has submitted the issue to the State Council for its opinion Solve the problem.
Official Statement: Bakhtiar Haji told Ava Media that what Baghdad is demanding in exchange for sending salaries outside the constitution, budget laws, financial management and the decision of the Federal Court.
- Although the Federal Court has decided not to mix the issue of salaries with political conflict, but Baghdad created problems for salaries under other pretexts.
On the other hand, according to the Director General of Communications and Follow-up Affairs of the Kurdistan Regional Government, the latest attempt by Baghdad to hide and kill time to send the salaries of the Kurdistan Region was to ask the opinion of the State Council The powers of this council and the issue has been decided by the Federal Court in the interest of the Kurdistan Region.
SOMO announces termination of contracts with Kurdistan oil companies and confirms imminent resumption of exports.
The State Oil Marketing Company (SOMO) announced on Tuesday that it has terminated all contracts and obligations with companies purchasing oil produced from the Kurdistan Region.
The company emphasized that resuming oil exports from Kurdistan would restore Iraq's position as a primary source of oil for the thirsty European market.
The company's general manager, Ali Nizar Al-Shatri, said in a press statement: "What happened in the Kurdistan Region was a matter of understanding and establishing working mechanisms," noting that "the law applies to everyone."
He explained: "The federal Ministry of Oil and the Ministry of Natural Resources in the Kurdistan Region operate within a single framework, given that the oil produced is Iraqi oil. The uniqueness lies solely in the nature of the relationship between the regional government and the companies operating there."
He added, "The federal government, the regional government, and the producing companies need to complete the budget law implementation mechanism, and advanced understandings have been reached in this regard." He indicated that "efforts are ongoing to reach a final agreement that will allow the resumption of crude oil pumping to the Turkish port of Ceyhan and the commencement of exports."
Al-Shatri continued: “The crude oil produced in the Kurdistan Region is not currently exported, but is consumed locally within the region. We are working in accordance with the 2025 budget law to convert the surplus quantities after local consumption into exports.” He pointed out that “the Oil Marketing Company has completed all its contracts and obligations with the purchasing companies and is ready to receive the quantities as soon as they are pumped by the producing companies and the regional government.”
He pointed out that “the resumption of exports will restore Iraq’s glory as a primary source for the European market, which is thirsty for this type of oil, especially in light of the Russian-European crisis and the absence of Russian supplies, as Iraqi oil is distinguished by its similarity in quality to Russian oil,” stressing that “so far, SOMO has not received any quantities of oil from the Ministry of Natural Resources in the region, and the contractual relationship remains between the ministry in Kurdistan and the producing companies.”
The agreements between Erbil and Baghdad have not been implemented
Although the Kurdistan Regional Government (KRG) was supposed to resume oil exports in the coming days and hand over oil to SOMO, but the rumor is denied, while the State Council has its own report on revenue The agreements between Erbil and Baghdad have not been implemented.
A senior source in Baghdad told PUKMEDIA: All the news about the export of oil through SOMO are far from the truth and Erbil and Baghdad several times They have agreed, but in practice these agreements have not been implemented.
"Both governments are responsible for starving the people of the Kurdistan Region, because the meetings and the results of the committees had no results and was only a waste of time," the source said.
According to PUKMEDIA, the Iraqi Council of Ministers meeting today did not discuss salaries, because the work of the State Council Committee has not been completed to submit its report on the issue of non-oil revenues The Council of Ministers.
However, there are rumors that the Kurdistan Regional Government has told the oil companies to hand over the current amount of oil produced to SOMO, by recycling 50,000 barrels of oil for domestic needs, on condition that The Iraqi government should not create problems for non-oil revenues and directly from the seventh month salary, to fund the salary earners of the Kurdistan Region, but in reality this attitude has not been seen in the region.
In response, the Iraqi Oil Marketing Company (SOMO) said in a statement, "We have completed all contracts and obligations with the companies that buy oil produced in the region.
Economist: Iraq's financial situation is difficult, and solutions after the elections will be painful.
Al-Marsoumi told Al-Furat News: "There are two possibilities for improving the situation (higher oil prices and increased oil revenues), but these are unlikely in light of US policy aimed at pressuring OPEC+ to increase production and maintain low prices that ensure prosperity for American citizens and reduce inflation there."
He added that "oil prices over the next two years will remain within current levels, increasing pressure on public finances.
" Al-Marsoumi pointed out that "it is difficult to raise non-oil revenues in Iraq, which forces any government coming after the elections to take urgent but painful economic measures, especially for those with limited income. These measures may include rationing the food ration card, lifting fuel and electricity subsidies, and adjusting the exchange rate by devaluing the Iraqi dinar against the dollar."
He stressed that "these decisions will not be taken before the elections because they are unpopular and could harm the reputation of the government and the electoral process," emphasizing that "the biggest challenge for any future administration is balancing economic necessity and popular pressure."
Economist: Iraq does not have a sovereign wealth fund, and its mission is handled by the Central Bank.
Salah Nouri explained to Al Furat News Agency that "the Central Bank of Iraq is currently handling the tasks of this fund."
He also pointed out that the Iraq Development Fund, which was established in 2024 with the aim of supporting economic development by attracting foreign investment, has yet to show tangible results due to its recent establishment.
In recent years, the Iraqi economic arena has witnessed intense discussions about the importance of establishing a sovereign fund entrusted with developing and investing the state's financial resources over the long term.
This step comes amid the government's efforts to diversify sources of income and reduce dependence on oil as the main source of the budget.
The idea of establishing this fund did not arise suddenly; rather, it goes back to the aspirations of previous governments, which were unable to bring this project to fruition.
A sovereign wealth fund is an investment fund that manages the state's financial surpluses through assets outside its borders. However, it is not affiliated with the Ministry of Finance or the Central Bank, and it differs from foreign exchange reserves.
A government advisor proposes establishing a sovereign fund for non-oil raw materials.
Saleh told Al Furat News Agency that this fund, which differs in its objectives from the Central Bank of Iraq's investment portfolio, which focuses on cash, will employ financial surpluses generated from raw materials such as phosphates, sulfur, and iron to develop manufacturing industries.
He stressed that the primary goal is to export semi-finished or finished products instead of raw materials, thus strengthening Iraq's position in regional markets.
The economic expert explained that the proposal is based on several fundamental principles, including maximizing local added value by investing the fund's revenues in industrial production chains, and supporting the diversification of the national economy by directing these investments toward vital sectors such as agriculture, industry, and renewable energy. He also noted that the fund will serve as sustainable financing for the general budget, reducing reliance on borrowing and deficit financing.
Saleh reviewed successful international experiences in this field, such as the Norwegian Government Pension Fund, Singapore's GIC and Temasek funds, and the Abu Dhabi Investment Authority in the UAE, emphasizing the need to adopt global best practices in management, governance, and transparency.
Regarding the expected outcomes, Saleh explained that establishing the fund will reduce reliance on oil as the sole source of income, support financial stability, and attract foreign direct investment in partnership with the fund.
To realize this vision, Saleh called for urgent practical steps, including drafting a law for the fund, forming an independent founding body of experts, and incorporating the proposal into the government program and Iraq's national development vision. This will ensure the implementation of this strategic tool, which represents a cornerstone of a sustainable future economic vision.
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Al-Mandlawi discusses with Harris ways to strengthen relations between Washington and Baghdad.
First Deputy Speaker of the Iraqi Parliament, Mohsen al-Mandalawi, discussed ways to strengthen bilateral relations between Iraq and the United States on Tuesday with the Chargé d'Affaires of the US Embassy in Baghdad, Joshua Harris. The two sides also discussed key issues of mutual interest.
During the meeting, according to a statement from his media office received by Shafaq News Agency, Al-Mandlawi stressed "the importance of consolidating the strategic relationship between the two countries on the basis of mutual respect and common interests," emphasizing "the need to expand areas of cooperation to serve Iraq's stability and prosperity and support development and reform efforts."
The meeting also reviewed current regional and international developments, with Mandalawi stressing "the importance of continuing dialogue and coordination to address security and political challenges in the region, and working together to prevent the escalation of conflicts and achieve stability," according to the statement.
In the same context, the First Deputy Speaker of Parliament called on the international community, primarily the United States, to "exert serious and effective pressure on the Zionist entity to end the suffering of the Palestinian people in Gaza, who are subjected daily to policies of starvation, forced displacement, and a systematic war of extermination." He emphasized that "Iraq's firm position is to defend the legitimate rights of the Palestinian people and support their just causes."
For his part, the US Chargé d'Affaires expressed his country's "keenness to develop cooperation with Iraq in various fields and support the efforts of the Iraqi Parliament and government to promote stability and development," noting "Iraq's active role in consolidating regional and international security and affirming its position as a responsible partner in supporting stability and peace."
Cabinet session: Decisions on farmers, aviation, and leasing a building to the World Bank
Prime Minister Mohammed Shia al-Sudani chaired the 37th regular session of the Council of Ministers on Tuesday, September 16, 2025. The Council made decisions regarding farmers, aviation, and leasing a building to the World Bank.
According to a statement from Al-Sudani’s office, a copy of which was received by Al-Jabal, “Within the government’s approach to administrative and financial reform, the following was approved:
1. Obligating ministries, entities not affiliated with a ministry, and governorates with all their formations and departments, including public companies and self-financing departments, not to dispose of all collection funds, wages, and revenues for purposes other than those properly designated for them.
2. Cancel all previous decisions and directives regarding the disposal of tax funds in violation of the above.
3. The Minister, the head of the entity not affiliated with a ministry, the Governor, and the person ordering the disbursement shall bear the legal and financial consequences resulting from the disposal of public funds in violation of the above, regardless of the reasons for the disbursement.
4. The Federal Board of Financial Supervision and the Federal Integrity Commission shall follow up on the implementation of the decision and take legal action against violators.
He added: "In support of the agricultural sector and enhancing local production, the Council agreed to postpone the payment of installments for sprinkler irrigation systems equipped for farmers and agriculturalists (except for the Kurdistan Region of Iraq) for a period of one year exclusively for those who received them before the agricultural season (2024-2025)."
He continued: "Within the framework of addressing housing, approval was given to grant an investment license for the project to establish a residential complex for the General Company for Communications and Power Equipment, one of the formations of the Ministry of Industry and Minerals, under the supervision of the implementing company, with an area of (932 dunams) in Nineveh Governorate, Mosul District, based on the provisions of the amended Investment Law (13 of 2006), and including the conditions mentioned in the decision of the Higher Committee for Investment and Reconstruction within the terms of the investment contract."
Regarding the aviation sector, the following was approved:
1. The instructions mentioned in (Section Three) issued by the Iraqi Civil Aviation Authority on 7/8/2025 shall be cancelled, with the exception of the instructions mentioned in (Type One) of Paragraph (Second), which are (Instructions No. (2) regarding the rules for investigating aviation accidents and forming technical investigation committees for the year 1975 and Instructions No. (16) regarding determining flight, work and rest periods for members of the aircraft crew for the year 1988 and Instructions No. (7) Air hostesses on the aircraft for the year 1976) based on a special text in their issuance in accordance with the aforementioned law.
2. The Iraqi Civil Aviation Authority shall issue the instructions mentioned in (Section Four) of the table mentioned in Paragraph (1) above, provided that the Civil Aviation Authority issues a decision to cancel them in accordance with the law.
3. The Iraqi Civil Aviation Authority shall issue the necessary instructions in accordance with the powers granted to it by law and in accordance with the requirements for issuing and updating technical regulations and rules related to the aviation sector, and in accordance with the annexes issued by the International Civil Aviation Organization under the Chicago Convention.
The Council also voted on the following:
- Increasing the reserve amount and the total cost of the project (constructing a two-lane road from the southern side of eastern Tikrit, linking Al-Dour along the Tigris River).
- Including the project (construction of the suspended Marine Command Bridge Road with the implementation of (3) bridges and rainwater drainage and lighting works) as a component within the main project (construction of the ring road for Basra Governorate) and increasing the total cost of the main project, with its name being amended to become (construction of the ring road for Basra Governorate with the construction of the suspended Marine Command Bridge Road with the implementation of (3) bridges and rainwater drainage and lighting works).
- Increasing the reserve amount for the project (construction of a pumping station and development of the Suwayr River / Muthanna Governorate) and increasing the total cost of the main project.
- Increase the reserve amount and the total cost of the main project (installation and equipment of a fixed iron bridge over the Tigris River parallel to the old iron bridge in the city of Mosul).
- Increasing the reserve amount and the total cost of the project (replacing the lines carrying rain and heavy water in the main streets of the Al-Hussein neighborhood area (Sayyid - 60 - First Line) with the implementation of a rainwater lifting station with the municipality and electricity works / Basra Governorate).
- Increasing the reserve amount and the total cost of the component (installing decorative lighting poles and paving the Al-Mazlam area in Al-Rumaitha / Al-Muthanna Governorate), with an increase in the total cost of the main project.
- Exempting Basra Governorate from Cabinet Resolution (107 of 2025) for the purpose of including the project (equipping, designing, implementing and operating desalination and purification stations in (6) districts and sub-districts of Basra Governorate, namely: (Abu Flus, Al-Maqal, Al-Siba, Al-Madinah, Al-Imam Al-Sadiq, Al-Nashwa, and Al-Deir) in the form of equipping, designing, implementing, operating and maintaining desalination and purification stations and components of (4) for consulting work.
Regarding the work of contracting oil companies, according to the statement, “The Council of Ministers voted to amend paragraph (2) of the recommendation of the Ministerial Council for Energy (87) for the year (2025) to renew the exception granted to contracting oil companies (the Oil Exploration Company, the Oil Projects Company, and the General Company for Heavy Engineering Equipment) regarding the two methods (single bid and direct contracting) to enable the companies of the Ministry of Oil to refer work to the aforementioned companies that fall within their jurisdiction, provided that the contract is not higher than the estimated costs, and is implemented by the public company exclusively without resorting to its partner from the private sector for a period of one year, starting from the date of issuance of this decision.”
The Council voted to "allocate a real estate building in Baghdad belonging to the Ministry of Finance, on a lease basis, to be the headquarters of the World Bank branch in Iraq." The Council also "approved the report on the executive recommendations of the Baghdad/2025 Summit, to proceed with its implementation, support institutional activation of the outcomes, and enhance Iraq's regional role through a sequential and measurable implementation of the summit's recommendations."
The statement added: "With the aim of preserving tax revenues, the Council voted to approve authorizing the Minister of Finance or her authorized representative to negotiate and sign or initial the draft law ratifying the agreement to avoid double taxation and prevent tax evasion on income and capital between Iraq and the Government of Great Britain and Northern Ireland, based on provisions of the Constitution, and for the Ministry of Foreign Affairs to prepare the necessary authorization document and submit it to the General Secretariat of the Council of Ministers to obtain the signature of the Prime Minister."
The draft law ratifying the statute of the OIC Labour Centre, which was reviewed by the Council of State, was also voted on and referred to the House of Representatives, based on the provisions of the Constitution.
The Minister of Communications announces the signing of a contract with Nokia to establish two data centers in Baghdad.
Minister of Communications Hiyam al-Yasiri announced on Tuesday the signing of a contract with global company Nokia to establish the first two data centers in the capital, Baghdad. She explained that the project will establish government data centers according to internationally recognized standards.
Al-Yasiri said, "Today, we signed a contract with Nokia to establish two data centers, the first at the Intisar site and the second at the Rashid switchboard in the Sinak area."
She added, "These data centers will be, for the first time, government centers and will provide their services to government institutions and the private sector, meaning that the data of Iraqis and all companies benefiting from this service will be stored inside Iraq, in government locations and by Iraqi hands.
" Al-Yasiri explained that Nokia, which will implement the project, is a reputable international company. It previously established the data center for the general population census at the Ministry of Planning, and today the tender to establish these two centers in Baghdad was also awarded to it."
Al-Yasiri continued, "The presence of advanced data centers is a fundamental pillar for completing the infrastructure of the telecommunications sector. There is no point in extending fiber optic networks or accelerating internet service without data centers that store and process information according to the highest specifications."
She explained that "the advantage of this project is that it will establish, for the first time, government data centers with internationally recognized standards, to provide their services to government institutions and the private sector, while ensuring that data remains stored within Iraq and under Iraqi management."
For his part, Nokia's Director for the Middle East and Africa, Rocky Lozano, stressed that "the project to establish two data centers in the capital, Baghdad, is one of the foundations of the digital transformation that Iraq is witnessing," noting that "the project helps in completing the infrastructure projects led by the Ministry of Communications."
He added that "Nokia will work to build a database and data centers at the highest levels, in accordance with the latest global technologies, which will help advance the fields of digitization, governance, and e-government."
He continued, "The project is considered one of the fundamental projects that the company is completing in Iraq," expressing his happiness with the urban development that Iraq is witnessing, especially in the field of infrastructure.
Chinese Consulate in Erbil marks National Day
link there's a ton more pictures if you want to see them click the link
On Tuesday, the Chinese Consulate in Erbil celebrated the National Day of the People’s Republic of China with a ceremony attended by officials, diplomats, and cultural figures.
Shafaq News correspondent reported that participants emphasized the need to strengthen ties serving mutual interests and supporting future cooperation. Celebrations included a ceremonial cake and the exchange of gifts, among them a symbolic key inscribed in Kurdish with the phrase “Baghcha Jin” (Chinese Garden).
China has maintained strong relations with both Baghdad and Erbil for decades, supported by its role as a major economic partner and its presence in official forums.
Customs discusses with a Turkish delegation the activation of the ASYCUDA system and facilitating trade exchange.
Today, Tuesday, the General Authority of Customs discussed with a Turkish delegation the activation of the ASYCUDA system and facilitating trade exchange.
A statement by the authority, followed by Al-Masry, stated that, “In implementation of the Prime Minister’s directives aimed at developing economic relations and enhancing international cooperation, the Director General of the General Authority of Customs, Thamer Qasim Daoud, held a meeting with a delegation from the Turkish Embassy headed by the Trade Representative, Fatih Celinic, in Baghdad, during which the mechanisms for implementing joint agreements and facilitating trade exchange between the two countries were discussed.”
Thamer affirmed that "the government attaches great importance to facilitating customs procedures and developing work mechanisms in line with international standards, particularly following the recent visit of the Iraqi delegation to the Turkish capital, Ankara, and the resulting bilateral understandings in the areas of trade exchange."
The Director General pointed out the importance of immediately activating the agreement on the exchange of expertise in relation to the ASYCUDA system and adopting modern technological methods. He explained that regular communication will be organized via videoconference, with at least one monthly meeting, in addition to direct meetings in Baghdad or Ankara when necessary to implement any official directives.
He explained that the General Authority of Customs will provide the Turkish side with the lists of customs tariffs for goods and merchandise in support of the principle of transparency, stressing that the Authority publishes all prices and updates on its official website, as soon as possible. The advance customs declaration will be adopted as of (12/1/2025) and the customs flow of Turkish goods entering through border centers to limit manipulation and customs evasion.
Thamer also called on commercial companies to commit to submitting tax and import IDs issued by the two countries' Ministries of Commerce, supported by the ASYCUDA code, to complete and facilitate commercial transactions.
For his part, the Turkish delegation, headed by Fatih Celik, expressed its appreciation for the significant cooperation shown by the General Authority of Customs, stressing the importance of proceeding with the implementation of the agreement to exchange expertise and enhance cooperation in the field of international commercial transport, which would contribute to supporting the economies of both countries.
The Kurdistan Regional Presidency hosts a joint meeting with a US delegation regarding the unification of the Peshmerga.
The Kurdistan Region Presidency hosted a joint meeting on Tuesday with officials from relevant institutions in the region and a US military and diplomatic delegation to discuss reforming and reorganizing the Peshmerga forces.
During the meeting, the attendees emphasized the importance of advancing the reform process and unifying the Peshmerga forces. They also discussed the next steps and remaining phases of the process.
The two sides reaffirmed their joint efforts to accelerate the reform process and address the obstacles it faces, while exchanging views on enhancing coordination and cooperation between the two parties.
The Iraqi judiciary considers the budget delay a "violation of the constitution," and Al-Sudani's interrogation is approaching.
The Iraqi judiciary considers the budget delay a "violation of the constitution," and Al-Sudani's interrogation is approaching.
The Supreme Judicial Council addressed an official letter to the House of Representatives regarding the government's delay in submitting the general budget tables, considering this delay a breach of the constitutional and legal obligations stipulated in Article 62 (First) of the Constitution.
The judiciary explained, according to a document, that this breach gives the House of Representatives the authority to hold the government accountable in accordance with the oversight and constitutional powers granted to it, stressing that failure to perform this duty constitutes a legal reason to question the Prime Minister in accordance with the provisions of the aforementioned article.
The letter, issued and signed by the Chief Public Prosecutor, Judge Najm Abdullah Ahmed, indicated that the Presidency of the Public Prosecution submitted its report to the House of Representatives, following an inquiry by MP Mustafa Khalil Al-Karawi, stressing that Parliament has the authority to question the government about the reasons for the delay in submitting the budget.
In the same context, MP Hadi Hassan Al-Salami submitted an official request to the Presidency of the House of Representatives to schedule the questioning of the Prime Minister in the next parliamentary session, indicating that the failure to submit the budget tables represents a clear breach of the government's constitutional obligations.
Al-Salami explained, according to an official document, that the request is based on the provisions of Article (61/Seventh-C) of the Constitution, Articles (27, 29, 31) of the House of Representatives Law, and Internal Regulations No. (13) of 2018, noting that the issue of the budget is one of the most important topics of the interpellation, which requires the Presidency of Parliament to set a date for a special session regarding it.
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