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The Federal Supreme Court of Iraq orders Autonomous Kurdistan to transfer all its oil to central government control. A decision that the Kurdish authorities immediately rejected, which risks fueling tensions in its relations with Baghdad.
Iraq’s highest court has delivered its verdict following two complaints from the federal government. The latter has been trying for years to get his hands on the production and marketing of Kurdistan’s oil, considering that it belongs to all Iraqis.
According to the verdict of the Supreme Court, the entire production of the oil fields of the Kurdish autonomous region must pass under the control of the federal government. Justice also gives Baghdad the right to examine all the oil contracts made by Kurdistan, even to have them canceled.
Almost total autonomy of the Kurds
But the Kurdish authorities have no intention of applying such a decision. Black gold is the main source of income which ensures Kurdistan’s financial independence vis-à-vis the central power, with which relations are very strained.
Iraqi Kurdistan in fact produces more than 400,000 barrels per day, of which only 250,000 are transferred under the control of the federal government, which in exchange bears all the salaries of the Kurdish civil servants. The autonomous region has also signed dozens of oil contracts with foreign companies, contracts denounced as illegitimate by Baghdad.
In addition to the differences around the thorny issue of hydrocarbons, relations have also soured for political reasons. The government of Kurdistan, which has gained almost total autonomy in recent years by taking advantage of the chaos in the country, organized an independence referendum in 2017. Even if the referendum was never followed by a proclamation of independence , it caused a serious crisis with the federal power.
