In recent years, the Kurdistan Regional Government (KRG) in northern Iraq has been exporting oil to Turkey through a pipeline that bypasses the central government in Baghdad. However, this practice has come to a halt due to a ruling by a court in London.
The ruling, which was issued in March 2021, stated that the KRG must pay $1.1 billion to the state-owned oil company in Baghdad, known as SOMO. This payment is for oil that was exported without the approval of the central government between 2014 and 2015.
The KRG has disputed the ruling and has stated that it will appeal the decision. However, in the meantime, oil exports from the Kurdish area have come to a halt. This has had a significant impact on the region’s economy, as oil exports are a major source of revenue for the KRG.
The KRG has been exporting oil to Turkey since 2014, when it built a pipeline that bypassed the central government’s control over oil exports. This move was seen as a way for the KRG to gain more control over its own resources and to increase its revenue.
However, the central government in Baghdad has long disputed the legality of these exports and has argued that they are a violation of Iraq’s constitution. The dispute between the KRG and Baghdad over oil exports has been a long-standing issue, and it has often led to tensions between the two sides.
The recent ruling by the court in London has further escalated this dispute. The KRG has argued that it has the right to export oil independently, while Baghdad has maintained that all oil exports must go through SOMO.
The halt in oil exports from the Kurdish area has had a significant impact on the region’s economy. The KRG relies heavily on oil exports for revenue, and without this income, it may struggle to pay its bills and provide services to its citizens.
The ruling by the court in London has also raised questions about the future of oil exports from the Kurdish area. If the KRG is forced to pay the $1.1 billion to SOMO, it may be less inclined to continue exporting oil independently. This could lead to a further deterioration in relations between the KRG and Baghdad.
Overall, the halt in oil exports from the Kurdish area due to the ruling by the court in London is a significant development in the ongoing dispute over oil exports between the KRG and Baghdad. It remains to be seen how this issue will be resolved and what impact it will have on the region’s economy and political stability.
