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Kurdistan Region's Right to Transport Oil via Iraqi-Turkish Pipeline Upheld by International Arbitration Court

Gulan Media March 29, 2023 News
Kurdistan Region's Right to Transport Oil via Iraqi-Turkish Pipeline Upheld by International Arbitration Court

The International Arbitration Court has upheld the Kurdistan Region's right to load and transport oil through the Iraqi-Turkish pipeline to the port of Ceyhan in Turkey, according to reports. The Paris-based court ruled that the Kurdistan Region has the right to transport and use oil pipelines to Ceyhan and that the only violation by the region is loading oil onto ships at the port of Ceyhan.

The ruling comes eight years after Iraq sued Turkey over an oil deal between Ankara and Erbil, which concerned exports through the Kirkuk-Ceyhan pipeline. The Kurdistan Regional Government (KRG) heavily relies on the pipeline link through Turkey to export its crude oil.

The Paris court's decision is a significant development for the KRG as it could help alleviate concerns over the legality of its oil exports. However, the ruling will further tighten the noose on the KRG, which is already grappling with economic challenges due to a combination of falling oil prices, the COVID-19 pandemic, and disputes with the federal government in Baghdad.

The KRG has been at odds with the central government over the issue of oil exports and revenue sharing for years, leading to the withholding of budget payments by Baghdad. The situation has resulted in a financial crisis for the KRG, which has struggled to pay its public servants' salaries and meet other obligations.

The Paris court's ruling is expected to provide a boost to the KRG's oil sector and improve its financial position, but it remains to be seen how the federal government in Baghdad will react to the decision.

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