Baghdad warns to cut funds if Erbil fails to send oil

<p style="text-align: left;">Iraq Oil Minister Thamer Ghdhban on Friday, May 10, predicted that the federal government would cut funding to the Kurdistan Region in the future if the Region continues to fail to transfer oil to the State Organization for Marketing of Oil (SOMO).

During an interview with al-Sharqiya TV, Ghadhban said that the Kurdistan Region had not transferred any of 250,000 barrels of crude oil per day to the SOMO, as it is required to under the 2019 federal budget law.

&ldquo;The Iraqi budget legislation was voted on [and contained] agreements from all the political factions and the Region should commit to it,&rdquo; he said.

In return for the oil, the federal government sends 12.67 percent of the budget to the Region in monthly installments. Even if there is a dispute over oil revenue, Baghdad will still be required to send public salaries to Erbil, but could choose to withhold funds beyond that, NRT reported.

In the past, the Kurdistan Regional Government has said that it was unable to send the oil because it had obligations from prior contracts to fulfill.

While Baghdad has so far been tolerant of that, Erbil's failure to live up to its part of the budget law has provoked resentment among some lawmakers.

Federal Finance Minister Fuad Hussein has previously confirmed that the federal government had met its obligations and sent full monthly transfers for January, February, March, and April.

Reporter&rsquo;s code: 50101

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