Draw Media

In 2014, the Kurdistan Regional Government decided to sell oil independently, which was called an "independent economy", and since then, the government and the people of the region have suffered more than 100 trillion dinars of economic damage. How?

Before the independent economic decision, the region's share in the Iraqi general budget was a trillion and 200 billion dinars which were sent to the region monthly. In 2013, a year before the region decided on its independent economy, 15 trillion and 338 billion dinars were sent from Baghdad to the region, meaning that every month that year, a trillion and 278 billion dinars had been sent to the Kurdistan Region by Baghdad.

But in late 2013, when the regional government decided to sell oil independently, Baghdad stopped the region's budget in early 2014. At the time, the Regional Government stated that KRG would increase the level of oil exports to one million barrels per month.

According to a report by the Iraqi Parliament's research department, the Kurdistan Region has sold oil from 2014 to 2019 for 40 billion and 703 million dollars, meaning 47 trillion and 961 billion dinars, but during that time Kurdistan Regional Government has lost more than 62 trillion dinars in its Iraqi budget, how?

• From 2014 to 2019, the region's share in Iraq’s general budget was 75 trillion, 514 billion and 843 million dinars, but only 13 trillion and 370 billion and 533 million dinars were sent to Kurdistan Region and (62 trillion, 171 billion, and 310 million) dinars were cut off because KRG did not deliver the oil to Baghdad.

It means that the Regional Government has sold oil worth 47 trillion dinars in the five years, but it has lost 62 trillion dinars in its support in the Iraqi budget project.

This is when the regional government did not owe money before the independent economic process. But after the announcement of the independent economic process in 2014 until now, 2019, the number of debts has reached 27 billion, 549 million, and 958 million dollars, which is 40 trillion dinars. The amount of salary savings of the public servants is 8 billion and 966 million dollars, which is 13 trillion Iraqi dinars.  It means that the independent economic policy let KRG’s debt reach 40 trillion dinars.

On the other hand, due to oil and gas transactions, the regional government has lost more than 2 trillion and 500 billion dinars in courts against the oil and gas companies:

On July 2, 2015, Dana Gas Company won $1.980 million against the Regional Government at the London court.

• On February 14, 2017, Dana Gas Company won 121 million dollars from the Regional Government in London court for the second time.

The money that the regional government has lost to Dana Gas Company will be 2 billion and 101 million dollars, which is (2 trillion and 500 billion dinars)  in Iraqi dinars.

The economic damage that has been caused by the oil policy to the Kurdistan Region is more than 100 trillion dinars, as follows:

• Baghdad has cut 62 trillion dinars of the region's support in Iraq’s budget for not handing over oil.

• From 2014 to 2019, the Regional Government ‘S debt reaches 40 trillion dinars.

• (2 trillion and 500 billion) dinars were the value of the cases that the Regional Government has lost in courts against the oil and gas companies.