Iraqi Economic News and Points to Ponder Sat AM 9-9-23
Sudanese Advisor: The Rise In Oil Prices Reduces The Gap In The Hypothetical Budget Deficit
What matters is that the average prices of exported oil during the fiscal year exceed that hypothetical price
Zagros TV Zagros Arabia – Erbil The financial advisor to the Prime Minister, Mazhar Mohamed Saleh, confirmed today, Saturday (September 9, 2023), that the rise in oil asset cycle prices reduces the hypothetical deficit gap in the federal general budget.
Saleh said in a media interview carried by the official news agency, and followed by Zagros Arabia: “The oil markets indicate a tangible rise in the prices of the cycle of oil assets, as Brent crude oil has exceeded the barrier of $90 per barrel, which has a positive impact on reducing the hypothetical deficit gap in the federal general budget.” (This is the budget approved under Law No. 13 of 2013), estimated at approximately 64 trillion dinars as an average deficit in the fiscal years 2023, 2024 and 2025, which was adopted as a preventive financial buffer to confront fluctuations in oil prices and demand surprises in energy markets.
He added, “What matters is that the average prices of exported oil during the fiscal year exceed the default price approved by the budget for a barrel of Iraqi exported oil, amounting to 70 US dollars.
Therefore, any sales exceeding the aforementioned default price will undoubtedly lead to reducing the gap in the hypothetical deficit and in a clear inverse relationship.” “.
He continued: “We believe that the budget for the next two years will maintain its constants and its preventive and precautionary measures, regarding the development of prices in the oil markets, and the relationship of this to the hypothetical deficit, especially for the fiscal year 2024, as the northern hemisphere is facing high demand to build stocks facing the winter, and indicators
The war in Ukraine indicates its continuation, and that the OPEC Plus group is also continuing the policy of limiting the quantities produced to maintain prices for exported oil that are commensurate with the stability of the revenues of its countries’ financial budgets.” https://zagrosnews.net/ar/news/46529
Parliamentarian: The Kurdistan Government Is Facing The Largest Economic Crises In The History Of The Region
Politica l | 09/08/2023 Baghdad – Mawazine News Member of the Oil, Gas and Natural Resources Committee, Ali Shaddad, revealed that the Kurdistan Regional Government is exposed to economic crises that are the largest of their kind in the history of the region.
Shaddad said in a statement, a copy of which was received by Mawazine News, that “the cessation of oil exports through the Turkish Ceyhan port has caused Kurdistan major financial crises as a result of accumulated debts that are difficult for it to pay at the present time.”
He pointed out that “the Kurdish authorities suffered huge losses and incurred large debts to international oil companies.”
He explained that “Kurdistan began to throw accusations at the central government and did not reveal to the Kurdish people the truth about the money that the Baghdad government sent to Kurdistan to pay the salaries of employees and establish urban and service projects.”
Turkey “Turns The Tables” On Iraq.. Baghdad Is Demanding More Than $3 Billion In Compensation To Ankara
Politics |Today Baghdad today – Erbil Oil expert Kovind Sherwani confirmed today, Saturday (September 9, 2023), that the decision of the International Arbitration Court in Paris obligated Turkey to pay compensation to Iraq with a fine of one billion and 400 million dollars.
Sherwani told “Baghdad Today”, “The Turkish government initially announced its commitment to the decision and stopped the export of oil through the Turkish port of Ceyhan, but it issued a statement in which it confirmed that the court’s decision included five items in favor of Ankara.”
He added, “According to the decision and provisions published by Turkey, there are compensations that Iraq must pay to the Turkish government amounting to more than 950 million dollars.”
He pointed out that “all visits by Turkish officials did not lead to an agreement and settlement for the purpose of resuming oil exports,” adding, “The cessation causes harm to the three parties, Baghdad, Ankara, and the Kurdistan region.”
While Sherwani pointed out that “the issue of the oil dispute will not be resolved through the courts because it will take a long time and we will need money and expenses to be borne by all parties,” he stressed that “the solution is to sit at the negotiating table and solve the crisis radically.”
The Kurdistan Region oil file was transferred between the Iraqi government and the Turkish government, from the courts of Paris to the courts of the United States of America. Baghdad and Ankara filed lawsuits against each other in American courts.
Iraq demands that Turkey pay a fine of (two billion and 400 million) dollars, for violating the agreement signed with it in 1973. For its part, Turkey has other accounts and is demanding compensation from Baghdad in the amount of (950 million) dollars .
On this basis, the Turkish government filed a lawsuit against the Iraqi government before an American court, demanding that Baghdad pay it compensation amounting to $956 million, refusing to pay any compensation to Iraq .
According to a report by the “Middle East Eye” website, based in the British capital, London, about the problems between Turkey and Iraq regarding the export of Kurdistan region’s oil through the port of Ceyhan, the Turkish government filed a lawsuit against the Iraqi government before the District Court of Columbia in the American capital, Washington, according to which it refuses to pay any compensation to Iraq, Baghdad demands compensation amounting to $956 million.
It is noteworthy that Iraq has not paid part of the fees for transporting oil through Turkish territory since the 1990s. The international arbitration panel set an interest rate on this debt, which increases successively whenever Iraq delays payment .
Turkey says, according to the report, that with the interest rate set by the International Arbitration Tribunal in Paris calculated for the amounts that each of the two countries must pay to the other, the amount that Iraq must pay to it becomes greater than what it must pay to Iraq .
In this regard, the report believes that Iraq will receive compensation amounting to $2.6 billion after calculating interest, while Turkey will receive $3.5 billion, meaning that Ankara will gain $919 million for the difference between the two informants for the period preceding the international arbitration panel’s decision, in addition to $37.7 million. Dollars in interest after the Authority’s decision, bringing the total to $956 million .
The export of oil from the Kurdistan region through the Turkish port of Ceyhan to abroad was halted on March 25, in response to a decision issued by the international arbitration panel in Paris based on a lawsuit filed by the Iraqi authorities against Turkey.
The report indicated that Iraq did not inform the Turkish authorities of the matter, despite efforts made to discuss how to take action following the International Chamber of Commerce’s decision, a decision that accuses Turkey of violating its agreement with Baghdad and practicing oil trade in isolation from Baghdad and directly with the Kurdistan Regional Government between 2014 and 2018 .
According to the British website, after the Iraqi move, angry Turkish officials promised that Iraq would pay the price for this measure during their private talks, so last August 31, they took a step in this direction and filed a lawsuit in an American court, demanding compensation .
Following the decision of the Arbitration Court in Paris on March 25, Turkey suspended oil exports to the Kurdistan Region, which constitute 0.5% of the world’s total oil exports.
The British website wrote, “Turkey wants Iraq to withdraw the second lawsuit before the Arbitration Court in Paris regarding the period after 2018, in order to reach common ground regarding the court’s decision, as Ankara called on Iraq to find a payment system that satisfies both the governments of Baghdad and Erbil.” LINK
British Report: Türkiye Is Suing Iraq To Pay Compensation Of About One Billion Dollars Because Of The Region’s Oil
Posted On 09-09-2023 By Sotaliraq A British report revealed, today, Friday (September 8, 2023), that the Turkish government filed a lawsuit against the Iraqi government before an American court, demanding that Baghdad pay it compensation amounting to $956 million, refusing to pay any compensation to Iraq.
According to a report by the London-based Middle East Eye website, about the problems between Turkey and Iraq regarding the export of Kurdistan region’s oil through the port of Ceyhan, the Turkish government filed a lawsuit before the District Court for the District of Columbia in Washington, DC, against the Iraqi government, demanding that no compensation be paid to Iraq. Rather, Baghdad should pay compensation amounting to $956 million to it.
Turkey says, according to the report, that with the interest rate set by the International Arbitration Tribunal in Paris calculated for the compensation that each of the two countries must pay to the other, the amount that Iraq must pay to it becomes greater than what it must pay to Iraq.
According to the site, Turkey believes that Iraq will receive compensation amounting to $2.6 billion after calculating interest, while Turkey will receive $3.5 billion.
Five months passed on (August 25, 2023), since the export of oil from the Kurdistan and Kirkuk region through the Turkish port of Ceyhan was halted, which came after the decision of the international arbitration panel in Paris, which caused huge losses, amounting according to estimates to 5 billion dollars.
The export of oil from the Kurdistan region through the Turkish port of Ceyhan to abroad was stopped on March 25, in response to a decision issued by the international arbitration panel in Paris based on a lawsuit filed by the Iraqi authorities against Turkey. LINK
Points to Ponder About Facts:
If the facts don’t fit the theory, change the facts. Albert Einstein (1879 – 1955), (attributed)
Facts do not cease to exist because they are ignored. Aldous Huxley (1894 – 1963), “Proper Studies”, 1927
Where facts are few, experts are many Donald R. Gannon
Get the facts, or the facts will get you. And when you get them, get them right, or they will get you wrong. Dr. Thomas Fuller (1654 – 1734), Gnomologia, 1732
Facts are facts and will not disappear on account of your likes. Jawaharlal Nehru (1889 – 1964)
Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence. John Adams (1735 – 1826), ‘Argument in Defense of the Soldiers in the Boston Massacre Trials,’ December 1770
We can have facts without thinking but we cannot have thinking without facts. John Dewey (1859 – 1952)