Ankara may stop KRG’s oil exports via Turkey

The Iraqi Kurdish Regional Government’s (KRG) economic power, propelled by oil exports via Turkey, is potentially at risk if the autonomous administration in northern Iraq insists on independence considering Ankara’s objection to the referendum, an energy expert has said.

“Turkey holds important power in its hands: The oil trade is conducted through its territories. At a time when oil prices are getting close to $60 per barrel, Arbil gained economic independence from Baghdad with the help of this trade,” Volkan Özdemir, head of the Institute for Energy Markets and Policies (EPPEN) told Anadolu Agency in a recent interview.

“If Turkey is against this independence, it can stop oil transfers, but this won’t be easy. If stopped, the KRG will not have this economic power,” he said.

The non-binding referendum is expected to see residents in provinces controlled by the Iraqi regional government vote on independence from Baghdad on Sept. 25.

Özdemir said the oil revenue sharing deal between the central government in Baghdad and Arbil has already lost its validity. He said in the last three and a half years, Arbil has exported its oil to international markets through Turkey, independently from Baghdad’s central government.

Özdemir said the status of Kirkuk’s oil fields has great potential to inflame conflict between the sides.

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