Peregraf
The Kurdistan Region’s Ministry of Finance announced on Tuesday that 956 billion and 928 million dinars have been deposited into its account at the Central Bank of Iraq in Erbil, designated for the July salaries of employees and pensioners.
The funding comes as the Kurdistan Region’s market looks to rebound following a new agreement between Erbil and Baghdad to resume oil exports after a 30-month halt that had pushed the Region into a deep financial crisis. Oil shipments through the Iraq–Türkiye pipeline to Ceyhan resumed this morning, signaling a breakthrough in energy and political relations.
Trust remains fragile after years of repeated disputes over oil and finances between the Kurdistan Regional Government (KRG) and Baghdad. Since 2014, when the KRG began independent oil exports, the federal government cut the Region’s share of the budget, leading to irregular salaries, cuts, and deferred payments.
Under the agreement, Kurdistan’s oil—around 190,000 barrels per day, with 50,000 reserved for local consumption—will be exported through Iraq’s State Oil Marketing Organization (SOMO), with revenues deposited into the federal treasury. Salaries for KRG employees are to be covered from these earnings.
Prime Minister Masrour Barzani said he finalized the deal in a phone call with Iraqi Prime Minister Mohammed Shia’ al-Sudani, with both leaders hailing it as a “significant achievement” for all Iraqis. They also pledged to secure the Kurdistan Region’s share in Iraq’s 2026 federal budget and to push for long-delayed legislation, including the Federal Oil and Gas Law.
Al-Sudani emphasized the economic opportunities such cooperation could bring across Iraq, while both sides also discussed advancing the Development Road project.
Exports had been halted since March 25, 2023, after an arbitration ruling in Baghdad’s favor against Ankara, cutting 230,000 barrels per day from international markets and leaving the Kurdistan Region without crucial revenues.
The new six-article agreement has raised hopes of stability for the Region’s 1.2 million employees, but whether it will finally put an end to years of salary uncertainty remains to be seen.