The central government of Iraq is trying to reduce the federal budget payments to Kurdistan and the budget cut will amount more than $3 billion. It has said that this budget cut will be because of the losses the country has suffered from the oil exports of this autonomous region. This is the comment of a government spokesperson stated on Tuesday.
The advisor of the Prime Minister Nuri al-Maliki, Mr. Ali al-Moussawi has stated that the committee has found the amount of the loss to be $3 billion and the reason behind this loss is the inability of Kurdistan to provide the amount of oil that it has agreed upon and stopping the oil exports completely in recent times.
He has also added that according to the discussion in the cabinet meeting of today, the Kurdistan delegation has been provided the time of a week to visit Baghdad and discuss the matter or else the committee will go ahead and cut the amount from the amount that the Kurds get from the budget.
Due to the age long dispute over oil and gas rights, Kurdistan had stopped its share of the national oil export and it was also a step of protest against the government which hasn’t yet cleared the payment of all the companies which are working in this region. Kurdistan has resumed the oil export and has been sending about 120,000 bpd instead of the 175,000 bpd it had agreed upon earlier.