Baghdad reaffirms conditions for KRG budget support

Iraq's Cabinet on Tuesday reaffirmed that it will only authorize further budget transfers to the Kurdistan Regional Government (KRG) if the KRG hands over a large portion of its oil production and non-oil revenues.

The decision puts pressure on the KRG and oil companies operating in Kurdistan to re-start oil exports via Turkey under Baghdad's terms or risk another descent into fiscal crisis that would choke off payment of public-sector salaries and threaten the region's social and political stability.