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Asharq Al-Awsat
Asharq Al-Awsat
World
Baghdad - Asharq Al-Awsat

Iraqi President Calls for Comprehensive Dialogue between Baghdad, Erbil

Iraqi President Barham Salih. (Reuters file photo)

Iraqi President Barham Salih stressed on Thursday the need to launch "serious and immediate" dialogue between the federal government in Baghdad and the Kurdistan Region government in wake of the Supreme Court's ruling on the region's oil policy.

A surprise ruling by the court on Tuesday cast doubt on the legal foundations of the independent oil policy of Iraq's Kurdish-run region and threatened to drive a political wedge between the two governments.

The Supreme Court struck down the legal justifications for the semi-autonomous region's oil policy, effectively calling into question the future of the region's oil contracts, exports and revenues.

The ruling comes during a politically sensitive time, as efforts have stalled in Iraq to form a government.

In a statement on Thursday, Salih said the dialogue should search for "realistic mechanisms" that take into account the Supreme Court's ruling and that also secure the constitutional rights of the Kurdistan Region and all Iraqis.

"Revenues should be dedicated to serving citizens, away from corruption and mismanagement," he stressed.

He called on parliament to "immediately address the delayed oil and gas draft law" and ratify it.

Salih remarked that the years of delays in ratifying the law has created problems and crises, "leading us to the critical juncture we are facing today."

Tuesday's decision cast into doubt the future of the region's main revenue source.

The region averaged $750 million per month in oil exports via Turkey in 2021, according to Iraq Oil Report, a media outlet that covers Iraq and its oil sector. The region also relies on budget transfers from Baghdad to pay for salaries and debts to traders.

The Kurdish region said the ruling itself was "unjust, unconstitutional" and "unacceptable" in a statement. The region has historically relied on the absence of a federal oil and gas law to justify its independent oil policy.

Iraq's constitution says regions and provinces can have a modicum of independence over oil but that the specifics should be spelled out in a separate law. Such a law has never been passed.

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