Economic researcher Diaa Abdul Karim says the Kurdistan Region could face serious financial trouble if it continues to refuse exporting oil through Turkey’s Ceyhan port.
He explained that under the agreement between Erbil and Baghdad, oil revenues are supposed to go to the federal government, which then uses the money to pay salaries. If exports stop, that flow of money is cut off.
According to him, this decision could hit the region hard, especially government employees who depend on those salaries. In simple terms, no exports means less money—and that means more financial pressure.
He added that Baghdad is unlikely to be heavily affected. The government is shifting its focus to the Kirkuk-Nineveh pipeline, which is expected to start operating soon.
Because of that, he believes the Kurdistan Region has lost its bargaining power and put itself in a difficult position financially.
