By Larisa Muhammed
In light of the political and economic tension that Erbil and Baghdad relations have experienced over the past few years, the announcement of the agreement between the two sides is seen as an important and necessary step aimed at achieving a strategic partnership between the federal government and the Kurdistan Region.
The content of the agreement refers to the export of the region’s produced oil through the Federal Oil Marketing Company (SOMO) in a way that ensures the region’s balanced participation in the global markets, and obliges Erbil to pay a certain amount of non-oil revenues and to distribute the revenues in a transparent and fair manner, in addition to repaying the debts of oil investment companies that have accumulated in the region due to the financial crisis.
Although the consequences of this agreement are for a limited time, from the point of view of experts, it will provide a stable income for the region, and at the same time, it will provide an important opportunity for the new economy of the Kurdistan Region, even the reactions of this agreement were welcomed at the international level, especially the US State Department, which described it as a way to advance the oil file and the process of economic and political stability for all Iraqis.
One of the important features of this agreement for the Kurdistan Region is the restoration of the Region’s right to market oil through an official channel, and will have a positive impact on boosting oil exports and providing more revenue to the Region, it will strengthen the Region’s financial independence, especially in the possibility of implementing the mechanisms of monitoring and transferring revenues as stipulated in the agreement. The pending cases with international oil producers will reduce the financial pressure on the regional government. All of this will help to strengthen political and economic cooperation between the parties to the agreement, in which the Kurdistan Region can build a more stable future that will pave the way for more inclusive and sustainable development.
Ultimately, the Hawler–Baghdad Agreement, if implemented, will witness the birth of a new phase of cooperation and partnership between the federal government and the Kurdistan Regionwhich will not only be linked in the fields of oil and finance, but will also participate in the process of political building and the promotion of stability in relations. This will happen when the central government has a real will to implement the provisions of this agreement in the spirit of understanding and transparency, and aims to overcome differences It is important to build a bright future for the people of the region and the country in general.