KRG deposits July non-oil revenues into federal Finance Ministry account

ERBIL — The Kurdistan Regional Government’s Ministry of Finance and Economy announced Thursday it has transferred 120 billion dinars (around $84.7m) in non-oil revenues for July 2025 to the account of Iraq’s federal Finance Ministry at the Central Bank branch in Erbil.

The ministry said the transfer was made in cash on Sept. 25.

Following the Kurdistan Region deposit of monthly non-oil revenues, the federal Finance Ministry is expected to disbursing salaries to employees in the Kurdistan Region.

Despite September nearing its end, KRG employees have yet to receive their July and August salaries.

KRG Prime Minister Masrour Barzani said on Sept. 17 that Erbil has fulfilled its constitutional obligations and shown “every flexibility” in negotiations with Baghdad, stressing that the federal government must transfer public employee salaries without delay.

In May, Baghdad froze transfers to the region, accusing Erbil of exceeding its budget allocation and withholding revenue data. Payments resumed in mid-July after a deal in which the KRG agreed to deliver 230,000 barrels per day of crude oil and remit 120 billion dinars in non-oil revenue. Funds for May and June were then released.

The KRG Ministry of Natural Resources said Wednesday it has fully met its obligations under cabinet decisions for resuming crude exports in coordination with the federal Oil Ministry.

On Tuesday, Iraq’s state oil marketer SOMO said Baghdad and Erbil were close to finalizing an agreement. SOMO Director Ali Nizar said “the agreement has reached final stages” and that international companies had been given assurances on payments. He added the government would announce the export restart date soon after the official signing.

Oil exports from the Kurdistan Region have been suspended since March 25, 2023, when Turkey shut the Iraq–Turkey pipeline after an arbitration ruling in Paris sided with Baghdad. The International Chamber of Commerce tribunal found Ankara had violated a 1973 pipeline agreement by allowing the KRG to independently export oil without federal approval.