KRG Transfers May Non-Oil Revenues to Baghdad as Salary Decision Expected

PUKMEDIA

Stacks of Iraqi dinars.

The Kurdistan Regional Government (KRG) has transferred on Tuesday, 22 July 2025, its non-oil revenues of May to the Iraqi Federal Government in Baghdad, as Iraqi Prime Minister Mohammed Shia' al-Sudani is expected to decide on the disbursement of salaries for public employees in the Kurdistan Region.

According to a statement from the KRG Ministry of Finance, 120 billion Iraqi dinars in non-oil revenues were sent in cash to the Federal Ministry of Finance’s account at the Central Bank of Iraq’s Erbil branch. Of this amount, 50 billion dinars came from Sulaymaniyah province, according to information obtained by PUKMEDIA.

The transfer coincides with a scheduled meeting of the Iraqi Council of Ministers, chaired by Prime Minister al-Sudani.

On 17 July 2025, the Iraqi Cabinet published details of a recent agreement with the KRG, stipulating that the Kurdistan Region must deliver 230,000 barrels of oil per day to Iraq’s State Oil Marketing Organisation (SOMO), with the federal government agreeing to pay the KRG $16 per barrel for production costs.

According to the agreement, the KRG reportedly has a production capacity of 280,000 barrels per day—50,000 of which are used domestically—a recent assessment by the Iraqi Ministry of Oil found that drone attacks on regional oil fields have reduced actual production to just 81,000 barrels per day. This leaves only 30,000 barrels available for export, far below the agreed quantity and raising concerns over future implementation of the deal.

Another complication relates to the agreement's requirement that oil be delivered to SOMO and approved before salary transfers can proceed. With oil exports from the Kurdistan Region still suspended since March 2023 and unresolved debts to international oil companies, full implementation of the agreement remains uncertain in the near term.




PUKMEDIA