ERBIL, Sep. 4 (AKnews)
The Iraqi government has threatened to cut Kurdistan Regional Government's 17 percent share of the national budget by $3 billion if it fails to send a delegation to Baghdad in a week to discuss the issue.
The Iraqi government says the $3 billion is the equivalent of losses incurred by the KRG's halting of oil exports over the past few months due to disputes with Baghdad over oil deals.
Ali al-Mussawi, an adviser to the Iraqi Prime Minister Nouri al-Maliki has said a government committee formed by Baghdad has found the losses caused by KRG's failure to export the amount of oil that was agreed upon by the two governments in order for the region to receive 17 percent of the general budget.
Al-Mussawi has said that a Cabinet meeting on Tuesday a KRG delegation was given one week to discuss the issue with the Baghdad government or the central government will go ahead with the budget cut plans.
KRG has long been in dispute over oil deals with the central government in Baghdad. In April this year, the KRP stopped its oil exports saying Baghdad had failed to make the payments due to the energy companies operating in Kurdistan.
The regional government resumed shipment of oil to the international markets in Aug. sending about 120,000 bpd that was by about 50,000 bpd less than the agreed amount. The KRG also said it will halt the exports again if Baghdad failed to pay the operating companies.
© AK News 2012
