Speaking at the University of Kurdistan Hewler 2nd International Conference titled ‘The KRG’s Emerging Strategy for Stability in Iraq and the Region’, Barzani said: “The government in Baghdad has been receptive to our concerns.”
“They have listened. And they have been open to making changes. And in these discussions we know that neither side will get everything they want, that is the nature of negotiation of course.”
“We can put in place an agreement that is fair to everyone, which is true to the constitution, and which lays solid foundations for a fruitful partnership upon which we all can build,” the prime minister added.
Delegations have shuttled back and forth between Erbil and Baghdad in recent months as relations between the two continue to improve, having hit rock bottom in late-2017.
Erbil and Baghdad have formed committees for talks on the joint administration of the disputed territories, the KRG’s share of the federal budget, and the touchy subject of independent oil sales.
“Over the past year, I have built a positive working relation with [Iraqi] Prime Minister [Adil] Abdul Mahdi and his team. We both want security and prosperity,” Barzani said.
“We want a constructive and stable partnership with Baghdad. For me, this is not about competition but about partnership and trust. And I believe our counterparts in Baghdad see it the same way.”
Kirkuk
Relations between Erbil and Baghdad were already strained after Iraq’s then-prime minister Nouri al-Maliki cut the KRG’s share of the federal budget in response to the Region’s independent oil sales.
Despite fighting side-by-side in the war with the Islamic State group (ISIS), relations between the capitals collapsed on October 16, 2017 when Iraqi forces and Iran-backed militias responded to the Region’s independence referendum by launching an offensive into the disputed territories, forcing the Kurdish Peshmerga to withdraw.
The Peshmerga had defended oil-rich Kirkuk, a multi-ethnic province with a large Kurdistani population, from ISIS attack since 2014.
Article 140 of Iraq’s 2005 constitution says the status of Kirkuk as either a province of the semiautonomous Kurdistan Region or part of federal Iraq should have been settled by referendum. A poll is yet to take place.
“We are working to resolve our territorial disputes... Kirkuk is a key focus of our current negotiations with Baghdad,” Barzani said.
As Iraq’s constitution considers Kirkuk and other territories as disputed, “these areas must be jointly managed”, he said
“No single party should have a monopoly of control. A monopoly of control in a disputed territory or region is a dangerous situation.”
“We are seeking to reestablish joint security cooperation and restore representative local governments. We are also working with the United Nations to ensure their support in this effort.”
The biggest Kurdish parties in Kirkuk have established a joint list for the provincial election scheduled for April 2020 in a bid to consolidate the Kurdish share of the vote.
Barzani said Article 140 must become a basis for the resolution of Kirkuk issue.
Ethnically diverse Kirkuk is home to Kurdish, Arab, Turkmen, and Christian inhabitants. It has not held provincial council elections since 2005, mainly due to its disputed nature and disagreements between the province’s ethnic communities.
Budget
Baghdad cut the KRG’s share of the federal budget from 17 percent to zero in 2014 in response to the Region’s independent oil sales. Coupled with the costly war with ISIS and the collapse of global oil prices in 2016, the Region was plunged into a financial crisis.
“We want to re-enforce Kurdistan’s rights to federal revenues and oil and gas in line with the constitution,” Barzani said. “The situation is improving, but we need to ensure an agreement that can last for the long term and provide certainty for both sides.”
The KRG’s share of the budget was reinstated in 2018, but at the reduced rate of roughly 12 percent.
Under the 2019 budget, the KRG agreed to send 250,000 barrels of oil per day to Iraq’s state oil marketing body SOMO in exchange for its share of the budget. Although Baghdad has delivered funds to Erbil’s central bank, the KRG is yet to send a single barrel of oil.
Erbil-Baghdad relations have generally improved since Abdul-Mahdi became Iraq’s prime minister in late 2018.
As an independent technocrat with historically good relations with the Kurds, Abdul-Mahdi has presided over a thawing of the tensions between the two, which collapsed under his predecessor Haider al-Abadi.
Improvements in the relationship were noted by Jeanine Hennis-Plasschaert, the UN Special Envoy to Iraq, in her recent quarterly briefing to the UN Security Council.
Hennis-Plasschaert told the Security Council she is hopeful the two sides can resolve their differences now that both governments have been formed.
“This has created a positive momentum to advance of negotiations between Baghdad and Erbil, also demonstrated by the establishment of a High-Level Joint Committee,” she said.
“And I cannot deny: the expectations are high, in particular on key files – including Kirkuk, Sinjar (Shingal), and revenue sharing,” she added.
In late August, Iraq’s Interior Ministry reached an agreement with its KRG counterpart on visa issuing powers and on the lifting of entry fees imposed on Iraqis entering the Kurdistan Region. This followed the suspension of internal customs duties.
“Why does this matter to Kurdistani people?” Barzani asked. “Our focus is on the future, not on the past. By securing a settlement on revenues, we can create opportunities for our people.”
Peshmerga reform
The Peshmerga is not a unified national force – it is two distinct forces controlled by the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK).
After entering a costly war against ISIS, in which the Peshmerga lost more than 1,500 soldiers and another 10,000 wounded, the reform project to professionalize and unify the Peshmerga was conceived.
In 2017, a supreme committee in the Ministry of Peshmerga was formed. The British soon got involved, then later the Americans. Germany, as a key supporter of the Peshmerga, was also asked to support the project.
The four sides brainstormed ideas, resulting in a long-term 35-step reform plan named ‘Peshmerga of the Future’, which enjoys the blessings of former president Masoud Barzani, the KRG’s Council of Ministers, and both the rival KDP and PUK.
“We have begun a process of organizing and reforming the different unions of the Peshmergas. And we will conduct this process in full collaboration with our coalition partners,” Barzani said, adding that he has been working “very closely” with the PUK’s Deputy Prime Minister Qubad Talabani and Minister of Peshmerga Shorish Ismael.
And since the Peshmerga is part of Iraq’s national defense apparatus, “they must receive training, weapons, and salaries that they are entitled to under the constitution”, Barzani added.
