Iraqi Council of Ministers Meets Without Decision on KRG June Salaries or Oil Export Issues

Peregraf

The Iraqi Council of Ministers convened today under the chairmanship of Prime Minister Mohammed Shia Al-Sudani. However, despite expectations, the meeting did not address the critical issues of salary payments for Kurdistan Regional Government (KRG) employees nor the region’s oil export arrangements.

KRG public employees continue to wait for their June salaries, which depend on federal payments that have yet to be released. The unresolved salary crisis has left public employees in the Kurdistan Region unpaid for two consecutive months, deepening the economic strain and stoking frustration among the workforce. The situation has also increased political pressure on both Erbil and Baghdad to break the deadlock.

Sources confirm that the salary issue was not placed on the agenda nor discussed during today’s cabinet session.

Meanwhile, Iraq’s State Oil Marketing Organization (SOMO) announced on August 8 its readiness to resume oil exports from the Kurdistan Region, with all necessary logistical and contractual steps finalized. SOMO Director General Ali Nizar stated that the organization is prepared to begin exports once Kurdish producing companies deliver their oil output. However, the Kurdistan Region’s oil export has not yet started.

This announcement follows a recent agreement between Baghdad and Erbil to reintegrate Kurdish oil exports into the federal system. The deal requires the KRG to deliver at least 230,000 barrels per day to SOMO in exchange for payments of $16 per barrel, payable in cash or oil derivatives.

Currently, the Kurdistan Region’s production stands at approximately 130,000 barrels per day, of which 50,000 barrels are used domestically and the remainder are designated for export through Turkey’s Ceyhan port. The KRG has cited recent drone attacks as an obstacle to meeting full delivery targets but reaffirmed its commitment to supply what is available.

Despite SOMO’s readiness and ongoing technical preparations, the federal cabinet’s silence today on salary disbursements leaves KRG employees’ financial situation unresolved.

The oil export and salary arrangements are part of a broader federal-KRG financial agreement ratified by both parties in July. Implementation continues under the supervision of joint committees, but today’s meeting highlighted lingering challenges in translating agreements into action.