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Abadi one year ago cut the kurds out of the budget


dontlop
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Abadi on 2014 budget cutting the kurds out

Iraq

Iraq can’t finance budget deficit without Kurdish oil revenues, says legislator

Jan 19, 2014

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BAGHDAD // Iraq cannot finance its projected 2014 budget deficit unless the northern Kurdistan region pays its oil export revenue into the national treasury — or loses its share of state spending, a senior legislator said on Sunday.

Haider Al Abadi, head of parliament’s treasury committee, said the budget, swollen by extra expenditure, would “collapse” if the state kept paying the autonomous region its 17 per cent share even as the Kurds withhold oil export proceeds.

Baghdad’s chronic quarrel with Kurdistan over how to manage and share Iraq’s energy resources intensified this month when the Kurdish Regional Government (KRG) said oil had begun flowing to Turkey for export via a pipeline outside federal control.

Last week, Iraq’s oil minister threatened legal action and drastic trade reprisals against Turkey and any foreign companies involved in what he called the “smuggling” of Iraqi oil.

The KRG’s prime minister, Nechirvan Barzani, arrived in the Iraqi capital on Sunday to pursue talks on an issue that has bedevilled relations between Iraq’s Arabs and minority Kurds.

“We go to Baghdad with the intention of closing gaps,” KRG spokesman Safeen Dizayee said before the talks, which he said would focus on increasing Kurdistan’s oil output and a mechanism for marketing its exports.

Mr Al Abadi said the draft budget projected a deficit of about $18 billion (Dh66bn), assuming the Kurds paid the treasury the revenue from budgeted oil exports of 400,000 barrels per day (bpd) — a target industry sources say far exceeds Kurdistan’s current export capacity of around 255,000 bpd.

To Baghdad’s fury, the Kurds handed over no oil export revenue last year because of an unresolved dispute over the payment of oil companies operating in the northern region.

For much of 2013 the Kurds were trucking what industry sources estimated was up to 60,000 bpd of crude and condensates to Turkey, while the independent pipeline was being completed.

http://m.thenational.ae/world/iraq/iraq-cant-finance-budget-deficit-without-kurdish-oil-revenues-says-legislator

Edited by dontlop
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