Peregraf
A high-level delegation from the Kurdistan Regional Government (KRG) is in Baghdad for decisive talks with federal officials on resuming oil exports—a step seen as crucial to unlocking delayed salary payments for public employees in the Kurdistan Region.
Led by Acting Minister of Natural Resources Kamal Mohammed, Prime Minister Omid Sabah, and Secretary of the Council of Ministers Amanj Rahim, the KRG delegation began talks Saturday with the Iraqi government, the Ministry of Oil, and the Economic Council. Legal and technical experts are also part of the mission.
A source familiar with the discussions told Peregraf that "the outcome of these meetings will determine the fate of salaries," which have been delayed for May due to budgetary disputes between Erbil and Baghdad. However, another official source said that the Iraqi Ministry of Finance has already agreed to release the May salaries "within the next two days"—before a final oil deal is reached.
The visit follows two days of negotiations in Erbil between the Iraqi Ministry of Oil and KRG officials. Talks focused on resolving longstanding issues that have halted the Kurdistan Region’s oil exports, including company contracts, debt repayments, and mechanisms for paying oil production firms.
A key sticking point remains the nearly $1 billion in debt owed by foreign oil companies operating in the Kurdistan Region. While the KRG insists that the federal government should assume responsibility for repayment, Baghdad has yet to officially commit to doing so.
Also under negotiation is the issue of non-oil revenues. The federal government demands that the KRG transfer half of its monthly non-oil revenues—estimated at 150 billion dinars—into a federal account. So far, the KRG reportedly transfers only about one-third of that amount.
"No direct discussions on salaries have taken place yet," a source confirmed, adding that the broader issues of oil exports and revenue sharing must first be resolved.
Looking ahead, if a breakthrough is reached on oil and revenue-sharing agreements, the Federal Ministry of Finance is expected to review the KRG’s June salary list and release payments in line with the rest of Iraq’s provinces.
"The federal government has pledged to pay salaries monthly and without delay—on the condition that oil exports resume and non-oil revenues are properly transferred," a source told Baghdad Al-Youm.