Following the Paris court’s decision to halt the Kurdistan Region’s independent oil exports, significant financial changes have occurred in the Region’s relationship with Baghdad.

🔹 Baghdad's Funding to the KRG:
From March 25, 2023, to June 2025 (27 months), the Iraqi government transferred around 19.6 trillion IQD to the Kurdistan Regional Government (KRG). This amount covered 21 months of salaries in full (100%).

🔹 Oil Revenues of the KRG:
During the same period, the Region generated about 9.94 trillion IQD from oil revenues. Only 6% of this amount (598.5 billion IQD) was returned to the Iraqi government, while the remaining 94% (over 9.3 trillion IQD) stayed within the KRG.

🔹 Monthly Oil Sales Estimate:
Based on unofficial data, the KRG's oil sales currently generate approximately $297 million per month, of which:

• 72% (about $213 million) goes to the KRG,

• 28% (around $84 million) goes to the oil companies.
  None of this revenue is returned to the KRG's Ministry of Finance officially.

🔹 Oil Production & Pricing:
The Region operates eight oil fields producing around 300,000 barrels daily, totaling roughly 9 million barrels monthly. The average sale price per barrel is estimated at $34.

🔹 Backstory – Paris Court Ruling:
Though the Paris court ruling barred the KRG from exporting oil via Turkey’s Ceyhan port, the KRG continued producing and selling oil, mostly via unofficial or domestic channels, often below the global market price. This lack of transparency has deepened fiscal disputes with Baghdad.

🔹 Federal Budget Allocations:
Due to the export halt, Baghdad was forced to allocate KRG’s share from the federal budget. Official documents confirm:

• In 2023, Baghdad sent 4.7 trillion IQD to the KRG.

• In 2024, the total rose to 10.78 trillion IQD.

• In early 2025, 4.1 trillion IQD was sent.
  However, in May and June 2025, no payments were made.

🔹 Missed Salary Months:
Despite receiving full funding for 21 months, the KRG failed to pay salaries for six specific months