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The documents .. a government directive to stop spending funding for the Kurdistan region


DWS112
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The documents .. a government directive to stop spending funding for the Kurdistan region

4-25-2020

The documents .. a government directive to stop spending funding for the Kurdistan region

Alsumaria news

Alsumaria News publishes documents issued by the General Secretariat of the Council of Ministers addressed to the Ministry of Finance that includes several points, including obliging the ministry to stop disbursing financial amounts to the Kurdistan region as employees salaries, as well as obliging the region's government to export at least 250,000 barrels per day of crude oil produced from its fields.

 

Below is the text of the documents:

 
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Edited by DWS112
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Thank you for the article DWS.

 

They are fighting over the oil again. Geez imagine that.  Here is an article from Wed.  I thought they would work out their differences. Guess not

 

 

 

Baghdad and Erbil close to fold oil disputes …A gas deal looming

 
 
 2020/04/22 10:08:37
 

Shafaq news / The Iraqi Federal Government and Kurdistan Regional Government (KRG) are close to turning the page on their disagreements over the oil file, which is one of the outstanding issues for many years, but both sides are heading to conclude a new agreement to invest gas in the fields in the region.

 

The first steps of convergence began late last year when the two sides reached an agreement on Iraq’s financial budget for 2020 and included delivering Kurdistan Region 250,000 barrels per day of crude oil to the federal government in exchange for guaranteeing the salaries of employees and Peshmerga and the region’s share of about 13 %.

 

During the past period, the two sides held extensive discussions in the Iraqi capital, Baghdad, on the outstanding disagreements between them in the oil file and coordination between them regarding the “OPEC +” agreement to reduce production.

 

The two governments reached an agreement to commit each other’s share of the production cut agreement, as well as exchange information on production to give more transparency to this file.

 

Other than that, the two sides are heading to conclude an agreement to invest gas in fields in Kurdistan Region in an effort to secure fuel for power plants throughout the country.

 

In this regard, the federal government submitted a proposal to ( KRG) recently that the two sides should continue discussing this file in a visit by a delegation from Baghdad in the coming period, to prepare for the final agreement.

 

This convergence comes in the midst of the Corona pandemic crisis, which , data warns , will cause a financial crisis in Iraq due to the collapse of oil prices to less than 20 dollars per barrel, knowing that Iraq relies on the sale of crude oil to finance about 95 percent of the country’s expenditures.

 

Ashwaq Al-Jaf , Former deputy in the Iraqi parliament, a member of Kurdistan Democratic Party, told Shafaq News, “This is the stage of dialogue, as the legal and constitutional dialogue is the solution to all outstanding issues between Baghdad and Erbil.”

 

Also pointed out that, “there will also be mutual visits by a delegation from Baghdad to Kurdistan and vice versa to complete the discussion on the gas agreement, which will be of benefit to all Iraqi people.”

 

And it turned out that Al-Jaf added, “in the previous periods (in the second and third periods of government ), there was interference by some , in the files between Baghdad and Erbil to create problems, and there was no dialogue language followed, but there was some statements by the federal government through media .

 

The stuck disagreements between Baghdad and Erbil date back to many years, throughout the period after the fall of the previous Iraqi government in 2003, that the two parties couldn’t overcome them in spite of many rounds of discussions.

 

The differences worsened in an unprecedented manner during the second term of the previous Prime Minister Nuri al-Maliki (2010-2014), as he cut the Kurdistan Region’s share of the federal budget in 2014 to protest the region’s plans to develop oil fields.

The region’s share of the federal budget continued to be withheld throughout the period Haider al-Abadi’s government (2014-2018).

 

Al-Jaf said that,” Since the formation of the Adel Abdul Mahdi government, there have been steps, according to a constitutional and legal dialogue, to solve all outstanding issues, away from the media escalation, and this is the correct method, which should have been followed many years ago,”

She adds that “any agreement between Baghdad and Erbil in the oil and gas files is being developed according to a law that the parliament is voting on , but the problem will be with the escalation of the voices of some political parties.”

 

She also pointed out that “there is no problem between the two governments, and these oppositions are from the politicians who came by chance, who are trying to collect votes for the elections and are behind the confusion between the two governments, otherwise the two governments agree according to a formula that they set according to the budget law, that the Iraqi parliament votes on , and if there is a problem between Baghdad and Erbil, so why do they agree on something that is put in the draft budget and sent to the parliament.

 

Al-Jaf believes that “the government of Adel Abdul-Mahdi was devoting its time to solve the outstanding issues with (KRG) in accordance with the constitutional framework, and did not listen to those who were trying to create problems, and here the government is conserving the right of the Iraqi people and preserving the application of the law, away from any escalation from media “

Al-Jaf said, “The federal government has a ministry and experts to conclude any agreement on oil or gas, and to continue the discussion to complete the gas agreement . The next mutual visits of the two parties will make sure that there is an agreement according to the constitution and in the interest of all the Iraqis people”

The disagreements between Baghdad and (KRG) over the past years, prevented the passing of a law regulating the management of oil and gas in the country.

 

However, things began to move toward a solution gradually since last year, which will make the conclusion of the gas agreement between the two parties easy compared to the oil file.

The Iraqi oil expert Sadiq Al-Rikabi, said to Shafaq News, “The gas agreement between Baghdad and Erbil will be easier than agreeing on oil, especially since the two parties are going through a common ordeal of declining revenues, declining capital spending by oil companies and the absence of global demand.”

 

Al-Rikabi said, “The agreement on gas is between Baghdad and Erbil, because Iraq wants to benefit from electrical energy, without having to import gas from abroad,

This saves revenues and makes the agreement between Baghdad and Erbil to invest the discovered and untapped fields easy, especially since there are discovered fields. Recently, but it is underutilized. “

He assured that “the work will start in this field during the next few months, it is a common interest for Baghdad and Erbil, especially that it will reduce the importing of gas from abroad, and increase the capacity of electrical energy.”

 

He also added, “This agreement provides financial revenues for the federal government , which helps both parties, to provide funds to pay the salaries of employees, build infrastructure, and finance the budget, and helps Baghdad government and (KRG) to reduce the negative economic impact that caused by the declined oil prices, This agreement has a mutual interest for both parties. “

 

https://www.shafaaq.com/en/report/baghdad-and-erbil-close-to-fold-oil-disputes-a-gas-deal-looming/

 

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What's a little surprising is that after all this time ( 16 1/2 yrs. ) there's not been one really concerted effort [ that we've been made aware of ] to blow up the damn building when the GOI has been in session.

 

I'm sure we've got a MOAB lying around somewhere that's not doing anything. At this point I think we need to lend a hand and move things along, don't you ? They've been stuck in a rut long enough  :wave:

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20 minutes ago, Jaygo said:

English? 😂

I with jaygo  !    spenglish please ....  :eek:   9 pages of that  made  a headache ...

 

17 hours ago, DWS112 said:

Council of Ministers addressed to the Ministry of Finance that includes several points, including obliging the ministry to stop disbursing financial amounts to the Kurdistan region as employees salaries, as well as obliging the region's government to export at least 250,000 barrels per day of crude oil produced from its fields.

this  could be  a huge  misdirection propaganda post of the news  ...  {  why the hell would  the whole of Iraq stop wanting to steal  Kurdistan  oil  ?   }

15 hours ago, Pitcher said:

Baghdad and Erbil close to fold oil disputes …A gas deal looming

 
 
 2020/04/22 10:08:37
 

Shafaq news / The Iraqi Federal Government and Kurdistan Regional Government (KRG) are close to turning the page on their disagreements over the oil file, which is one of the outstanding issues for many years, but both sides are heading to conclude a new agreement to invest gas in the fields in the region.

 

The first steps of convergence began late last year when the two sides reached an agreement on Iraq’s financial budget for 2020 and included delivering Kurdistan Region 250,000 barrels per day of crude oil to the federal government in exchange for guaranteeing the salaries of employees and Peshmerga and the region’s share of about 13 %.

this seems  more in line to what  everyone has  seen in the news over the last  billion years  ,  there had always been ,  oil/gas profit sharing  order  in the works , and always  a dipstick  in the mix throwing the deal off ,   but the  13 %  share is  1 %  more than the kurds were asking for if I remember right ?

so I guess next weeks news will be  " kurds  marching in the streets , more protesting by all !  "  the following week will most likely be   a more reasonable news posting  from Iraq  on  both articles above  ... ( even the  1  not translated  ;) )   

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52 minutes ago, Jaygo said:

English? 😂

 

23 minutes ago, jeepguy said:

I with jaygo  !    spenglish please ....  :eek:   9 pages of that  made  a headache ..

Me too!

Translation of documents:

 

 


Ministry of Finance / Minister's Office

 

Referring to your book numbered (91? 1) dated 9/1/1707. The Prime Minister directed that your ministry must implement the Federal General Budget Law No. (1) for the year and the Federal Financial Administration Law No. (1) for the year 2014, and on the subject we would like to make the following statement: First: regarding the amounts spent on financing the salaries of the Kurdistan Region for the period from 1 /1/1217 upwards, we refer to the following: -


1. In accordance with the provisions of Article (71 / Fifth) of the Federal Financial Administration Law No. (11) of 911107, your ministry must download the sums resulting from the non-funding of ministries, the region, or the governorates that are not organized in a region for oil and gas revenues and other annual funding.


2. Sumo Company confirmed that it did not deliver the agreed quantity according to the Federal General Budget Law. We refer in this regard to the book of the Ministry of Oil numbered (and / 500) dated 10/10/9701?, in which the Ministry clarified what is not valid, and also confirmed that the company SOMO informs the Ministry of Finance monthly of the position of the non-delivery of crude oil by the Kurdistan Region.


3. Based on the foregoing, your Ministry is obligated to stop the disbursement of amounts, which are more efficient and to recover the amounts disbursed in violation of the law, and as referred to in paragraph (1).


As for the amounts disbursed during the entry into force of the Federal Budget Law No. (1) for the year 2015, we refer to the following:


1. According to Article (10 / First) of the Federal Public Retail Law No. (1) of 511107 (the dues are settled between the Kurdistan Region and the Federal Government for the years 4100? to 711? Actual expenses for the previous years that are shown in the final accounts approved by the Federal Financial Supervision Bureau).


page 2


2. Under Clause (II / A) of the same article (the Kurdistan Regional Government is obligated to export no less than (200,000) barrels (two hundred and fifty thousand barrels of oil) daily crude of crude oil produced from its fields for marketing by the (SOMO) company). To deliver the oil revenues exclusively to the state treasury.)


3. Likewise, clause (II / C) of the same article required the government to pay the region’s dues, including compensation for the region’s employees, and the amount of the damage is deducted from the dark share in the event that it does not deliver the estimated share of oil in item (a) and given SOMO’s assertion that it did not deliver the quantity Agreed upon according to the Federal Budget Law »We refer in this regard to the letter of the Ministry of Oil more efficiently than what is required from your ministry to deduct the amount of damage achieved from the application of Article (10 / second / c) from the region’s share 0 confirming the support of representatives (the Prime Minister’s Office 0 and the planning button) 0 Integrity Commission 0 Federal Financial Supervision Bureau »Dr. A) in legal Alljih in the General Secretariat of the Council of Ministers of the above.

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