Baghdad threatens to choke off KRG funding
Political tensions skyrocket after recently announced gas deals, resulting in legal challenges and threats to Kurdistan's budget.
Iraqi Prime Minister Mohammed Shia al-Sudani (standing, center right) and KRG Prime Minister Masrour Barzani (standing, center left) oversee a ceremony in Baghdad on April 4, 2023, to sign a temporary deal for restarting northern oil exports. (Photo credit: Prime Minister's Office)
BAGHDAD/ERBIL - Iraq’s federal government has taken aggressive action against the Kurdistan Regional Government (KRG) in the past week, threatening to cut off billions of dollars in federal funding and filing lawsuits against recently announced gas field development deals.
The escalation in political hostility comes shortly after a high-profile visit by KRG Prime Minister Masrour Barzani to Washington, DC, where he oversaw signing ceremonies on May 19 to mark the investment of two U.S. companies in Kurdistan gas projects — deals the federal Oil Ministry quickly condemned as illegal.
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