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1. Autonomy Curbed? Kurdish Oil Exports Hit Snags from Turkey and Baghdad

Author:
Joshua Krasna
Publication Date:
07-2023
Content Type:
Commentary and Analysis
Institution:
Foreign Policy Research Institute
Abstract:
For the past three months, the Kurdish region in northern Iraq and its government, the Kurdish Regional Government (KRG) have been facing one of the most serious challenges in the two decades of its formal existence. The pipeline through which it exports some 400,000 barrels of oil a day (b/d) – 10 percent of the overall Iraqi exports and 0.5 percent of global production – has been closed since March 25, at an estimated cost of close to a billion dollars a month (approximately $30 million daily). The KRG has depended on income from oil exports for some 80 percent of its budget. The stoppage came after a decade-long arbitration between the Government of Iraq (GOI) and Turkey by the Paris-based International Chamber of Commerce was decided in March in Iraq’s favor. Turkey was ordered to cease loading Kurdish oil without GOI supervision, and to pay Baghdad $1.5 billion in owed fees (Baghdad had demanded $30 billion). Baghdad had claimed that use of the pipeline from northern Iraq to the port of Ceyhan in Turkey by the Kurds without GOI consent was in violation of a bilateral agreement between the two countries from 1973, the annex of which states Turkey would only buy oil from Iraq’s state-owned oil marketer.
Topic:
Oil, Economy, Exports, and Autonomy
Political Geography:
Iraq, Turkey, Middle East, and Kurdistan Region of Iraq (KRI)

2. How to Stop Iraqi Kurdistan’s “Bleeding”

Author:
Bilal Wahab
Publication Date:
09-2023
Content Type:
Commentary and Analysis
Institution:
The Washington Institute for Near East Policy
Abstract:
In a recent letter to President Biden that was soon reinforced by three U.S. lawmakers, Prime Minister Masrour Barzani of Iraq’s Kurdistan Regional Government expressed his alarm over the region’s survival. Noting that the KRG is “bleeding economically and hemorrhaging politically,” he laid the blame on Baghdad’s “dishonorable campaign” against Erbil. Barzani has a point—federal authorities have indeed been undoing the KRG’s hard-won autonomy in the years since the Islamic State fell and the Kurds launched an unsuccessful independence bid. Most notably, Baghdad has recentralized policymaking in the capital and blocked Kurdish oil exports amid a decade-old dispute over energy management. Yet Barzani’s narrative does not tell the whole story. The United States has long supported Iraqi Kurdistan’s autonomy, security, and development, fostering greater stability and pro-American sentiment. At the same time, however, Washington has overlooked the KRG’s vulnerabilities—namely, the internal divisions, corruption, and democratic backsliding that have diminished Erbil’s reliability and brought on the current existential crisis. The United States has a strategic interest in continuing to promote a stable and prosperous KRG, but it cannot do so without addressing the region’s internal problems.
Topic:
Foreign Policy, Politics, Autonomy, and Kurdistan Regional Government (KRG)
Political Geography:
Iraq, Middle East, and Kurdistan