Iraq, Kurdistan leaders talk oil, budget disputes

Shafaq News/ On Saturday, the Kurdistan Democratic Party (KDP) leader Masoud Barzani met with Iraqi Prime Minister Mohammed Shia al-Sudani to discuss ties between Baghdad and Erbil, Barzani’s office stated.

The meeting, held at the Salahuddin resort, addressed oil revenue distribution, budget allocations, and territorial administration, according to the statement.

Ties between Iraq’s federal government and the Kurdistan Regional Government (KRG) have been marred by recurring disputes, particularly after a March 25, 2023 ruling by the International Court of Arbitration in Paris, which found that Turkiye had violated a 1973 agreement by allowing oil exports from Kurdistan without the consent of Iraq's federal government. Subsequent budget negotiations have failed to produce a stable mechanism for revenue-sharing.

“The two sides emphasized the need for coordination among Iraqi parties to address national challenges and maintain stability,” the statement said, without offering specifics.

The talks come as Iraq seeks to navigate shifting regional dynamics, including heightened tensions between Iran and Israel and recent Turkish military activity near its northern border. Kurdish leaders have long voiced concern that political instability in Baghdad and economic uncertainty are undermining the country’s fragile power-sharing system.