Iraq's Deputy Prime Minister for Energy Hussein al-Shahrstani sent a letter to the Ministry of Finance to deduct the damage caused by the non-delivery of the Kurdistan Region's oil from the region's budget, said Shahrstani’s spokesperson.
The region halted exporting oil in April as a reaction against Baghdad's decision not to pay the foreign companies that were investing in the region’s oil sector.
Spokesman Faisal Abdullah said: "This year's budget obliges the Kurdistan Region to deliver the oil produced in the region in exchange for 17 percent of Iraq's budget."
The Kurdistan Regional Government announced earlier that Iraq must pay $1.5bn as receivable to companies producing oil in the region. Baghdad however accepted to pay $560m.