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Baghdad targets KRG budget priorities

Amidst rising Kurd-Arab tensions, Prime Minister Maliki's allies are taking aim at Kurdistan's economic imperatives – its share of the federal budget, and funding guarantees for oil contractors.
Members of the Iraqi Parliament gather for the formation of a new government on December 21, 2010, in Baghdad. (ALI AL-SAADI/AFP/Getty Images)

BAGHDAD - The tentative oil cooperation between Baghdad and the semi-autonomous Kurdistan region, which was reached three months ago, has suffered a series of political setbacks as the two governments remain locked in a military standoff in Iraq's disputed territories.

Allies of Prime Minister Nouri al-Maliki are lobbying to limit 2013 budget payments to oil companies contracted by the Kurdistan Regional Government (KRG) and to reduce the semi-autonomous region's budget allocation.

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