Shafaq News – Halabja

The Kurdistan Regional Government (KRG) is ready to transfer 120 billion dinars (approximately $91.6 million) in non-oil revenue to the Iraqi government, KRG Spokesperson Peshawa Hawrami announced on Wednesday.

Speaking at a press conference in Halabja, Hawrami noted that a “crucial meeting” is underway between the KRG delegation and Iraqi officials to discuss the handling of non-oil revenues.

The dispute between Baghdad and Erbil stems from long-standing disagreements over oil export mechanisms and the pooling of public revenues. While the KRG maintains that it has complied with the 2023–2025 Federal Budget Law by transferring 50% of its non-oil revenues and a portion of its oil income to Baghdad, it also accused the Iraqi government of “failing to meet its obligations” and “breaching constitutional provisions” by withholding funds.

Tensions escalated sharply in May 2025 after Baghdad withheld Kurdish employee salaries, although similar disputes have periodically resurfaced.

On August 17, the Kurdish Ministry of Natural Resources confirmed an agreement with Iraq’s Ministry of Oil to resume exports, allocating the first 50,000 barrels of daily production for local consumption and delivering the remainder to the State Oil Marketing Organization (SOMO) for export.

An informed source previously outlined to Shafaq News that the deal also provides for the KRG to receive 240 billion dinars (approximately $183 million) — 120 billion per month for May and June — while sending 230,000 barrels of oil daily to Baghdad in exchange for salary payments to Kurdish employees.