PUK Lawmakers Stress Urgency as Erbil-Baghdad Talks Reach Critical Stage

Economy 02:37 PM - 2025-09-08

KRG and Iraqi government's logo.

According to a decision by the Iraqi Prime Minister, Erbil and Baghdad have only a few hours left to reach an agreement on the resumption of oil exports and the transfer of non-oil revenues—issues that have long complicated relations between the two governments. The Patriotic Union of Kurdistan (PUK) lawmaker emphasises that the only viable solution to these challenges is an agreement between Erbil and Baghdad.

Karwan Yarwais, lawmaker of the PUK in the Iraqi Parliament, told PUKMEDIA: “The Iraqi Council of Ministers will meet tomorrow, which marks the deadline for an agreement between Erbil and Baghdad regarding the transfer of non-oil revenues and oil exports.”

He added: “A key reason for the disagreement is that the Kurdistan Regional Government (KRG) and the Iraqi federal government have different interpretations of non-oil revenues. The KRG believes it should hand over 50% of the federal non-oil revenues (budget generated by directorates run by the federal government within the Kurdistan Region), while the Iraqi government maintains that the Region should pay 50% of the total non-oil revenues to Iraq (meaning all directorate, including those run by the KRG). Articles 29 of the Financial Management Law and 11 and 12 of the Budget Law outline the procedures for how the Region should transfer non-oil revenues.”

Disputes Between Kurdistan Region and Baghdad Could Be Referred to Federal Court

The PUK lawmaker also stated that another aspect of the disagreement concerns oil exports. 

“The issue the companies involved, which previously held contracts with the Kurdistan Region and are now requesting new agreements with both Baghdad and the Kurdistan Region,” he said. “Under mounting pressure, Iraq has agreed to proceed. What remains now is finalising the structure of the agreement and drafting its terms.”

He added: “We hope the issues between the Kurdistan Region and Baghdad will be resolved by tomorrow. If not, they will be referred to the Iraqi Federal Court, which would negatively affect the people of the Kurdistan Region, as the process is lengthy and involves its own procedures.”

Dr Narmin Maruf: Talks Between Kurdistan Region and Baghdad Show Good Progress

Dr Narmin Maruf, PUK lawmaker and a member of the Finance Committee of the Iraqi Parliament, said: “The talks between the KRG and Baghdad on financial matters and oil issues have made good progress. Once their work is complete, a report will be submitted to Prime Minister Mohammed Shia' Al Sudani, after which it will be discussed in a meeting.”

She added that there is some sort of understanding between the KRG, Baghdad, and the oil companies to reach an agreement that will allow the resumption of oil exports and resolve the financial issues.

Iraqi Prime Minister previously gave 72-hour deadline to both the KRG and the federal government to reach an agreement, with the deadline ending on Tuesday.

PM Sudani also said  that the June salaries will be the last to be transferred to the KRG without an agreement.

The disputes between Baghdad and Erbil have persisted for  years, with no agreement reached between the two sides. This ongoing deadlock has had direct consequences for public sector salaries in the Kurdistan Region.

In the past eight months, the federal government has transferred funds for only six salary payments, while the fate of two additional payments unresolved.



PUKMEDIA