The Iraqi government has introduced new conditions in its ongoing negotiations with the Kurdistan Regional Government (KRG). Most notably, it now demands the extradition of wanted figures based in Erbil. This addition joins the long list of disputes between Baghdad and Erbil.
A political source told Shafaq News that these figures include former leaders of the dissolved Baath Party. They face accusations for crimes committed during Saddam Hussein’s rule or for involvement in insurgent activities after 2003. Baghdad has pursued their return for years. The government argues these figures are subject to judicial warrants and symbolize Iraq’s unfinished transitional justice.
Moreover, oil remains at the heart of Baghdad-Erbil tensions. The source revealed that the federal government insists the KRG deliver agreed volumes of crude oil to the State Oil Marketing Organization (SOMO). Baghdad demands this as part of Iraq’s national export system. Meanwhile, Kurdish officials argue that export suspensions through Turkey’s Ceyhan port since March 2023 have severely cut revenues. This revenue loss leaves the region unable to fulfill its commitments.
Furthermore, federal committees sent to Erbil have yet to reach terms acceptable to Baghdad. Consequently, Baghdad now considers linking budget transfers directly to verified oil shipments from the KRG.
Notably, an “oil-for-salaries” deal in early 2025 briefly eased tensions. Under that agreement, the KRG promised to supply all crude to SOMO, except 50,000 barrels per day reserved for local use. In return, Baghdad guaranteed timely payment of salaries. However, this deal collapsed by mid-2025 after drone attacks on regional oil facilities reduced production by about 70%. These attacks led to renewed payment delays.
Plans to restart exports via the Ceyhan port at roughly 80,000 barrels per day, under federal control, also remain stalled. Industry experts warn no breakthrough is likely soon. Moreover, Turkey’s formal notice to end its 1973 pipeline agreement with Iraq by July 2026 could further worsen the situation.
In conclusion, the Iraqi government adds extradition demand to its negotiation list with the KRG. It continues to push for oil deliveries while Erbil struggles with reduced revenues. Both sides face growing challenges in resolving their disputes.
