Shafaq News- Baghdad/ Erbil
Iraqi Prime Minister Ali Al-Zaidi and Kurdistan Region Prime Minister Masrour Barzani on Saturday launched talks in Baghdad focused on oil exports, border crossings, customs procedures, and revenue-sharing arrangements between Baghdad and Erbil.
During the discussions, which also addressed implementation of the UN-developed ASYCUDA customs platform and coordination over oil companies operating in the Kurdistan Region, Al-Zaidi stated that his government was seeking to resolve outstanding issues “according to the law and constitution,” adding that Baghdad aimed to reach an agreement serving “the interests of the country and its people.”
Barzani, meanwhile, stressed the importance of resolving disputes under the constitution while respecting the Kurdistan Region’s federal status. His two-day visit to the capital will also include meetings with Iraqi Parliament Speaker Haibet Al-Halbousi, Supreme Judicial Council President Faiq Ziidan, and senior political leaders, marking one of the first major engagements between Baghdad and Erbil since Al-Zaidi’s government gained confidence on May 14.
In March, Baghdad and Erbil reached an agreement to resume Kurdish crude exports through the Iraq-Turkiye pipeline following nearly two years of disruption, with exports resuming at around 170,000 barrels per day. Despite the agreement, negotiations have continued over payment mechanisms, revenue-sharing arrangements, and guarantees demanded by foreign oil companies operating in the Region, including members of the Association of the Petroleum Industry of Kurdistan (APIKUR).
The strategic importance of northern export routes has also increased following months of disruption to maritime shipping through the Strait of Hormuz, which Iran closed and the United States blockaded during their conflict.
Read more: Iraq's oil lifeline is blocked: Here is why the crisis runs deeper than Hormuz
Baghdad and Erbil also remain divided over federal budget transfers and salary payments to Kurdistan Region public employees. Earlier this year, the Kurdistan Regional Government’s Ministry of Finance and Economy said Baghdad had transferred only about 41% of the Kurdistan Region’s financial entitlements over the previous three years despite agreements on oil and non-oil revenue sharing, while the federal Finance Ministry argued that salary transfers depend on the Kurdistan Regional Government complying with revenue-sharing obligations under Iraq’s federal budget law.
Read more: Into 2026, Baghdad and Erbil face the same disputes—with higher stakes