Erbil, Kurdistan (KRG.org) - The Prime Minister yesterday addressed the Kurdistan Parliament at length regarding the Region's financial situation, disputes with Baghdad, natural resources, and other matters. An excerpt of his address is below:
“The Kurdistan Region’s policy from the beginning has been based upon solving outstanding issues with Baghdad. We want to find a solution and reach an agreement. Baghdad’s policies are, however, not reasonable. We have recently made several visits to Baghdad, and since 2005 we have made every effort to reach an agreement regarding budget distribution, but we have not yet reached a resolution…
Regarding oil, we have just begun exporting. This step has been taken after two years of negotiation with Turkey in which an agreement has been signed that permits the Kurdistan Region to export its oil. We are thankful to our Turkish counterparts for reaching such an agreement and for implementing it to the fullest…
Regarding the federal budget, we had only been receiving 10% instead of the 17% to which the Kurdistan Region is entitled. We have continuously taken initiatives to solve these financial problems, and have made several visits to Baghdad…
We are abiding by the Article in Iraq’s Constitution which states that the oil and gas are owned by all the people of Iraq. We are ready to cooperate with Baghdad and SOMO regarding the export of oil, including monitoring volumes so that they know precisely how much oil is being exported. We have suggested working with SOMO in both the tendering process, the selling process and in order to ensure transparency. We will work together in this, but we will not cede control to SOMO…
As for their request for transparency, we are open to include SOMO in every stage of the process and whatever they request under the condition of our receipt of 17% of the budget share. Again, what we are receiving is only 10%. What the KRG is offering in terms of delivery to its citizens differs [from the rest of Iraq]; therefore, today our people have higher expectation from their government and this is their right…
America is aware of the details of the outstanding issues between our Region and Baghdad. In fact, I believe that the American policy reflects the fact that the United States encourages both parties to reach an agreement that is suitable for both Baghdad and Erbil. This is our expectations of America – that they remain neutral. And this how they have acted so far...
According to Iraq’s budget law, the Federal Iraqi Government was supposed to provide the budget on a monthly basis to all of Iraq’s provinces and to the Kurdistan Region. From the start of this year until today, the Federal Government of Iraq has sent money to all of Iraq’s provinces except for the Kurdistan Region. From the beginning of the year, Iraq has sent only one trillion dinar to the Kurdistan Region. We would like to thank those local companies who have provided us with loans. In addition, we have borrowed from some foreign banks, and we also thank them. The government in Baghdad is supposed to have sent six trillion additional dinar which they have not and are not willing to provide to the Kurdistan Region...
Today I would like to say that the policy of the Kurdistan Region Government is to never take a step backwards. We want to reach resolutions with Baghdad through dialogue, but if we do not arrive at any resolutions then we have other alternatives and we will take them. We will not stop here. Why have we started selling oil? This is so that Baghdad understands full well that we are able to do this. In their eyes the KRG is overstepping its rights, and is unable to reach a point where we can openly sell our oil. But we have proved to them that we are capable of doing so…
The Kurdistan Region will soon be able to export 250,000 barrels per day. This economic independence is vital for the Kurdistan Region. We have achieved many gains through the policies that the KRG has implemented. Without the support and backing of you, the Members of Parliament, and the public, then undoubtedly we will fail. Baghdad cannot defeat us, but if we are not united in supporting these policies, then we will face crisis…
We will continue selling our oil through the Ceyhan port in Turkey to the international market, and we will try to reach an agreement with Baghdad. Our doors are always open for negotiations. Our process of selling oil has in every respect been in accordance with the policies and mechanisms also used by SOMO, without any shortcomings. We have been very careful to avoid causing any problems during the process and we will continue to pay strict attention to transparency, because the disputes are significant and are sensitive to both sides. We will work as hard as possible to ensure that our oil export process remains transparent. This is in order for the Kurdistan Region to avoid any liabilities or accusations. This process has supporters but also has its detractors. We do not want to face any problems with this issue…
It is with confidence that I tell you that we have started exporting oil and we believe we will reach a milestone at the end of the year, at which time we will able to export up to 500,000 barrels per day.”