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The Iraqi Kurdish Government has suffered $25 billion in losses since oil exports through Türkiye's Ceyhan pipeline were halted in March 2023, Northern Iraq Prime Minister Masrur Barzani said during a press conference.
The oil export suspension, which began March 25, 2023, has created significant financial strain for the semi-autonomous region as it continues a prolonged dispute with Baghdad over constitutional rights and salary payments.
The dispute represents one of the most significant challenges facing Iraq's energy sector, with both the Iraqi Kurdish Government and Baghdad suffering substantial financial losses during the prolonged suspension.
Barzani accused Iraq's federal government of withholding salaries for two months in violation of the constitution, escalating tensions between Erbil and Baghdad. "We will not give up our constitutional rights," Barzani said. "Baghdad is not the property of just one side. We should all be equal in this country, and we see ourselves as having power."
The Iraqi Kurdish Government leader said he expects Iraq's Supreme Court to resolve the salary dispute, following earlier involvement by the Federal Court. Baghdad is expected to send a delegation to Erbil within days to address the salary issue, according to Barzani.
"The Iraqi government should be equally responsible to all its citizens," Barzani warned. "If we see that this is not the case, then we will make our decision."
The Iraqi Kurdish Government signed $110 billion in energy agreements with two U.S. companies in May, which Barzani defended as legally sound. "The agreement with American companies is not new—this was done before with other companies, but they could not complete it," Barzani said. "We made an agreement with two other companies in Washington within the framework of the constitution and laws."
Barzani emphasized that the energy deals represent Northern Iraq's rights under Iraqi law. "The companies we made agreements with have been working (in Northern Iraq) for 15 years. This was not an agreement contrary to the laws that the Federal Government (Baghdad) could use against us."
Despite the ongoing disagreements, Barzani expressed hope for reaching an agreement that serves the interests of Northern Iraq's population within days, saying he remained optimistic about negotiations with Baghdad.
On regional security, Barzani welcomed the cease-fire between Israel and Iran as beneficial for the entire region and thanked Iraqi Prime Minister Mohammed Shia al-Sudani for keeping Iraq out of the conflict.
The prime minister attributed the Federal Court's intervention in salary payments to a lawsuit filed by some parties within Northern Iraq demanding that salaries be sent directly from Baghdad.
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