- Title: IRAQ-KURDS/OIL Iraq, Kurdish region implement deal on oil exports, salaries
- Date: 19th November 2014
- Summary: BAGHDAD, IRAQ (NOVEMBER 19, 2014) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** CONFERENCE ROOM WITH JOURNALISTS AND FINANCE MINISTER HOSHIYAR ZEBARI / ZEBARI SEATED FOR NEWS CONFERENCE JOURNALISTS (SOUNDBITE) (Arabic) FINANCE MINISTER HOSHIYAR ZEBARI, SAYING: "Today, November 19, the Finance Ministry has sent 583 billion Iraqi dinars, which equals $500 million, to the Kurdish Regional Government in accordance with an agreement concluded between the federal government represented by my brother and friend, the minister of oil, and the government of the region represented by the Kurdish prime minister." CAMERAMEN (SOUNDBITE) (Arabic) FINANCE MINISTER HOSHIYAR ZEBARI, SAYING: "The agreement stipulates that the region delivers 150,000 barrels of oil daily to the Ministry of Oil of the federal government. Indeed authorities of the region started yesterday, November 18, 2014, to pump oil to the tanks of SOMO (State Oil Marketing Organisation) at the Turkish port of Cyhan. This is the first instalment to fund salaries (of civil servants) of the region." ZEBARI LEAVING AFTER END OF CONFERENCE
- Embargoed: 4th December 2014 12:00
- Keywords:
- Location: Iraq
- Country: Iraq
- Topics: General
- Reuters ID: LVA7OH8Q9C4CCKC3FZ7YI7T905PB
- Story Text: The government of Iraq and the semi-autonomous Kurdistan region have begun implementing a deal under which Baghdad resumes funding Kurdish civil servant salaries in return for a share of Kurdish oil exports, Iraq's finance minister said on Wednesday (November 19).
The accord aims to reduce friction between Baghdad and Kurdish authorities as they face a common threat from Islamic State insurgents who have seized large parts of the north and west of the country.
"Today, November 19, the finance ministry has sent 583 billion Iraqi dinars, which equals $500 million, to the Kurdish Regional Government in accordance with an agreement concluded between the federal government represented by my brother and friend, the minister of oil, and the government of the region represented by the Kurdish prime minister," Finance Minister Hoshiyar Zebari said at a news conference in Baghdad.
Under the agreement reached last week, Kurdish authorities committed to pump 150,000 barrels per day of oil - around half their overall shipments - to Iraqi government export tanks in the Turkish port of Ceyhan.
Baghdad agreed to pay $500 million towards Kurdish salaries.
Zebari said that the Kurdish Regional Government began pumping oil to State Oil Marketing Organisation (SOMO) tanks at Ceyhan on Tuesday (November 18) and the $500 million was transferred on Wednesday.
"The agreement stipulates that the region delivers 150,000 barrels of oil daily to the Ministry of Oil of the federal government. Indeed authorities of the region started yesterday, November 18, 2014, to pump oil to the tanks of SOMO (State Oil Marketing Organisation) at the Turkish port of Cyhan. This is the first instalment to fund salaries (of civil servants) of the region," Zebari said.
Baghdad cut the Kurds' share of the budget to punish them for exporting oil without its consent. The region was plunged into financial crisis, but has continued pumping oil through its independent pipeline to Turkey, and exports recently increased to around 300,000 bpd.
Iraqi leaders are under pressure to bury differences in order to counter Islamic State militants who control substantial parts of Iraq and neighbouring Syria.
In July, then-foreign minister Zebari said the Kurdish political bloc withdrew from the national government in protest against then-prime minister Nuri al-Maliki's accusation that Kurds were harbouring Islamist insurgents in their capital.
The Kurds later rejoined the administration. But tensions persist even after Maliki's replacement by Prime Minister Haider al-Abadi, also a Shi'ite Muslim but seen as more moderate and capable of cooperating with Sunni Muslims and Kurds.
There are about 5 million Kurds in majority Arab Iraq, which has a population of more than 30 million. Most live in the north, where they run their own affairs, but remain reliant on Baghdad for a share of the national budget.
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