Rising budget controversy endangers northern export restart
A compromise measure to pay Kurdistan's oil contractors and unlock Iraq's northern oil export route has met major political opposition.The Iraqi Parliament Finance Committee meets on Jan. 19, 2025 to discuss budget legislation. (Photo credit: Iraqi Parliament)
Efforts to restart Iraq's northern oil exports suffered a major setback this week as members of Parliament tried to make drastic changes to a proposed budget amendment that would create a new framework for paying oil contractors in Kurdistan.
In its initial form, the budget amendment appeared to be a practical, stop-gap solution for unlocking an export route that has been offline for nearly two years. But the revised legislation, according to multiple MPs, is now transforming into an attempt to expand federal government control over aspects of oil, gas, and revenue management in ways that would erode the Kurdistan region's autonomy.
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