On Saturday, March 25, oil exports from northern Iraqi fields to Turkey were halted. Result of a decision of the International Chamber of Commerce rendered for the benefit of Iraq. A decision that could affect the already fragile relations between the government of the autonomous region of Iraqi Kurdistan and the federal government.
It is a conflict between Iraqi Kurdistan and the federal state at the heart of which Turkey found itself. After a complaint filed in 2014 by Iraq against Ankara, the International Chamber of Commerce has issued its decision: Turkey is violating an agreement between the two countries by directly importing black gold from the oil fields of Kurdistan, without authorization from the federal government. .
Ankara has announced that it is complying with this decision. It will pay compensation of one and a half billion dollars to Iraq. An Iraqi delegation will soon go to Turkey to try to resume exchanges. Still, this decision is not without consequences for Iraqi Kurdistan.
The economy of the autonomous region depends mainly on its oil revenues. So much so that the prolonged stoppage of its exports risks having a significant impact on its financial resources. In the long term, it is a question of sovereignty over oil reserves that arises. This decision puts Kurdistan in a bad position to negotiate with the federal state. A Kurdish delegation went to Baghdad this Sunday.
Source: African Manager