The sources told Shafaq News Agency that the unresolved issues include the salaries of KRG employees, oil exports and their revenues, as well as future dealings under “clear, standardized” procedures for calculating the state's financial resources based on official disclosures.

The sources added that “an initial agreement on oil extraction and exports is expected to be reached, ensuring that the export process and its revenues are conducted in accordance with the procedures of the State Oil Marketing Organization (SOMO) and market-approved pricing.”

The agreement, however, will not take effect until it is discussed and voted on during the weekly Cabinet meeting, the sources noted.

A KRG delegation, headed by Minister of Finance and Economy, Awat Sheikh Janab, arrived in Baghdad late Sunday to negotiate solutions to the ongoing salary crisis in the Kurdistan region.

Notably, the dispute between Baghdad and the KRG began in 2014 over oil resource management and budget allocations.

In February 2024, Iraq’s Federal Supreme Court ordered Baghdad to directly pay KRG employee salaries after prolonged delays.

In November 2024, the salaries issues were exacerbated when Iraq's cabinet ordered the KRG to immediately transfer its oil output to SOMO as part of an effort to centralize oil exports and revenue management.