By Selen Tonkus
ANKARA
Iraq's regional Kurdish government should seriously act to curb oil trade with ISIL so their reputation is not damaged, say Kurdish experts.
In Iraq's Kurdish north, the arrest of local business people who bought oil from the Islamic State of Iraq and Levant, or ISIL, either directly or through middlemen was recently revealed. The business people, who were linked to politicians and security officials, sent payment to ISIL via several Arab tribal leaders. One truck-load of oil was around 28 tons and was sold for $3,500, according to Kurdish media.
Dr. Bilal Wahab of American University in the city of Sulaymaniyah stressed potential damages from conducting Kurdish oil trade with ISIL.
"This is a point of embarrassment for the Kurdish Regional Government and it needs to be seriously cracked down," Wahab told The Anadolu Agency.
"The KRG is now taking pride in its reputation as saving territories under its control against ISIL," said Wahab, using an abbreviation for the Kurdish administration, adding that allowing oil business with ISIL may destroy this image.
Shwan Zulal, head of the London-based media monitoring service Carduchi Consulting, said the Kurdish government is trying hard to eradicate the trade and arrest the Kurdish traders but progress is slow.
- Erbil-Baghdad reconciliation
Wahab said there is a window of opportunity to reach a political agreement to solve the key legal and financial aspects of the oil dispute between the Kurds and Baghdad officials.
Relations between Erbil and Baghdad have been strained by a row over the sale of northern Iraqi oil through Turkey. Turkey and the Kurdish regional government have stated that the flow of northern Iraqi oil to international markets would continue despite Iraq's appeal for international arbitration, demanding an immediate halt to the sales.
Iraq failed to approve its 2014 budget due to a political boycott by 57 Kurdish deputies after the Kurdish government’s 17 percent oil share was not included in the budget. One of the conditions Baghdad has put in place for approving the Kurdish budget share is a complete audit of all the crude sales by the Kurdish rule.
"The mutual need is apparent. KRG needs the flow of cash from its oil sales, which is being hampered by the legal taint of the Erbil-Baghdad dispute," said Wahab, adding that potential buyers shy away from jumping at Kurdish oil in fear of legal repercussions.
"On the other hand, Baghdad city and the government seated there is in danger because of ISIL's progress, and needs Kurdish political and security help," he said.
"We may see a deal early next year," Zulal said regarding the ongoing negotiations which so far are progressing slowly.
Wahab commented allegations that Turkey was withholding KRG's oil revenue, he said: "Both the Turkish energy minister and KRG Prime Minister Nechirvan Barzani say oil money is being transferred to the KRG gradually. But we don't know the amount."
The Kurdish government currently exports around 200,000 barrels per day via Turkey, and has sold $1.3 billion worth of oil, Delshad Shaban, the deputy head of the energy committee in the Kurdish parliament, announced last week.
www.aa.com.tr/en
