Bekir Aydogan
25 June 2025•Update: 25 June 2025
ERBIL, Iraq
The Kurdish Regional Government (KRG) suffered $25 billion in losses because of the suspension of oil exports to Türkiye, Prime Minister Mesrur Barzani said Wednesday, blaming Baghdad for the region's deepening financial crisis.
Barzani said the KRG has been unable to pay public sector salaries for two months, accusing Iraq's federal government of violating the Constitution by withholding funds.
“Baghdad is not the property of just one side; we should all be equal in this country, and we see ourselves as the ruling power,” Barzani said at a news conference in Erbil.
He said the KRG expects Iraq's Supreme Court to resolve the salary dispute, and a delegation from Baghdad is due in Erbil in the coming days for talks.
“The Iraqi government must be equally responsible to all its citizens. If we see that this is not the case, then we will make our decision,” Barzani warned, without elaborating.
The KRG has faced mounting economic challenges since oil exports through Türkiye’s Port of Ceyhan were halted March 25, 2023, following a legal dispute between Baghdad and Ankara. The KRG relies heavily on oil revenue to cover public sector wages and other expenditures.
Barzani described the $25 billion in lost revenue as a blow not only to the KRG but also to Iraq.
Defending the KRG’s recent energy agreements with US companies, Barzani insisted the $110 billion in deals signed in May were legal and consistent with Iraq's Constitution.
“The agreement with US companies is not new; it had been made with other companies before, but they were unable to complete it. We made an agreement with two other companies in Washington within the framework of the Constitution and laws. This is the right of the Kurdistan Region,” he said.
Barzani said the companies have been operating in the KRG for 15 years, dismissing claims by Baghdad that the deals violate federal authority.
He also linked the KRG’s salary crisis to political divisions within the region.
“According to what government officials in Baghdad have told us, the federal court's intervention regarding salaries was the result of a lawsuit filed by certain parties in the Kurdistan Region demanding that salaries be sent directly from Baghdad,” he said.
Barzani also welcomed the ceasefire between Israel and Iran, saying it benefits the entire region. He thanked Iraqi Prime Minister Muhammad Shia al-Sudani for keeping Iraq out of the conflict.
