The efforts of Kurdistan and Iraq’s Prime Ministers in securing the budget law amendment have strengthened cooperation, boosting oil exports and increasing federal revenues.
Vian Sabri, head of the Kurdistan Democratic Party faction in Iraq’s Parliament, while congratulating the people of Iraq and Kurdistan Region on voting for the budget law amendment in Iraq’s Parliament, indicates that the efforts of Kurdistan and Iraq’s Prime Ministers were very important in strengthening relations between both sides.
Kurdish Globe: How do you view the approval of Iraq’s general budget law amendment, especially the articles related to Kurdistan?
Vian Sabri: Voting on the amendment strengthens relations between the Kurdistan Regional Government and Federal Government. Strengthening these relations serves the oil sector and increases federal revenues while reducing budget deficit in the federal treasury. Through an international advisory committee, oil extraction costs from Kurdistan Region’s oil fields will be determined fairly and equally, and exported through SOMO and Ceyhan port.
Kurdish Globe: How do you view relations between Erbil and Baghdad, especially regarding important issues like budget and oil?
Vian Sabri: We highly value the increased coordination between the Federal Government and the Kurdistan Regional Government. We seek new achievements, understanding, and laws to serve the greater good of Iraq and the Kurdistan Region. The initiative of Masrour Barzani, Kurdistan’s Prime Minister, to meet with all political forces and parties in the Council of Ministers to present a roadmap for Erbil-Baghdad relations was important. The Iraq budget law amendment regarding the Kurdistan Region’s share, which ultimately allowed Kurdistan’s oil exports at an estimated $16 production cost, was the result of the Kurdistan Prime Minister’s initiative. Later, Ribaz Hamlan, Iraq’s Deputy Finance Minister, delivered a special message to Iraq’s Prime Minister, which accelerated understanding between Erbil and Baghdad.
Kurdish Globe: Can we discuss the outcomes of understanding between both Prime Ministers regarding the future of both sides after years of media tension and political crisis?
Vian Sabri: In the meeting between Iraq’s Prime Minister and all parliamentary faction leaders, a kind of understanding was created. The international community eventually got involved, and with the admission of dissenting parliamentarians (from central and southern Iraq) that this amendment had both domestic and international agreement, it passed by majority vote. The strong will of both Kurdistan and Iraq’s Prime Ministers overcame obstacles from those within Kurdistan and Iraq who wanted to disrupt coordination. After passing the amendment, Kurdistan’s oil will be exported again, increasing Iraq’s general budget and maintaining the Kurdistan Region’s share in Iraq’s general budget.
Kurdish Globe: After approving the budget law amendment, how will Kurdistan’s oil be exported and what’s the mechanism?
Vian Sabri: A good understanding has been reached between Erbil and Baghdad. This agreement between both governments for oil exports sets Kurdistan’s oil extraction cost at $16, paid by Iraq’s government, which supports increasing Iraq’s general budget share. What was important was achieved through the efforts of Kurdistan and Iraq’s Prime Ministers, and this coordination was very important. After this amendment, Kurdistan’s oil will be exported directly, but the export mechanism will be decided by committees between Erbil and Baghdad. Now after the budget law amendment, regarding Kurdistan’s oil re-export, which has international support and through which several important energy companies work in Iraq because of Kurdistan Region, even the US State Department has officially announced support for restarting Kurdistan’s oil exports, so by re-exporting Kurdistan’s oil we’ll return to the global energy map.
Kurdish Globe: How will these understandings affect other future issues, especially the Sinjar and Kirkuk agreements?
Vian Sabri: Among all the problems in Iraq, fortunately, the Kurdistan Prime Minister’s initiative was an important step toward solving problems and succeeded in bringing together all Kurdish and Arab factions to quickly pass the budget amendment law. This initiative and understanding can have positive reflections in the future, especially in passing Iraq’s oil and gas law, which was supposed to be passed by PM Sudani’s government cabinet in early June. Besides this, we still have the Sinjar and Kirkuk agreements and the Peshmerga unification issue, which this kind of rapprochement and understanding can help resolve many important issues.
The Kurdish Globe