Turkiye and Iraq to thrash out oil deal after arbitration ruling ends Kurdish exports

Special Turkiye and Iraq to thrash out oil deal after arbitration ruling ends Kurdish exports
The Iraqi-Turkish pipeline in the district of Zakho, governorate of Dohuk, Kurdistan Region, Iraq, Aug. 28, 2016. (Reuters)
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Updated 30 March 2023

Turkiye and Iraq to thrash out oil deal after arbitration ruling ends Kurdish exports

Turkiye and Iraq to thrash out oil deal after arbitration ruling ends Kurdish exports
  • Arbitration ruling ordered Ankara to pay $1.4 billion to Baghdad for violating contracts by buying directly from the Kurdistan Regional Government
  • Officials from Iraq’s Oil Ministry are expected to travel to Turkiye to negotiate a new method for exporting northern Iraq’s oil

ANKARA: Turkiye is being urged to thrash out a new oil deal with Iraq after a landmark arbitration ruling ordered Ankara to pay $1.4 billion to Baghdad for violating contracts by buying directly from the Kurdistan Regional Government.

Officials from Iraq’s Oil Ministry are expected to travel to Turkiye to negotiate a new method for exporting northern Iraq’s oil after the International Court of Arbitration’s ruling last week in a case stretching back almost a decade. 

The ruling has stopped Iraqi Kurdistan’s 450,000 bpd exports, and raised fears of instability and economic crisis in the semi-autonomous region. Exports must now have the consent of Baghdad and both sides in Iraq must strike a larger agreement before oil production can fully resume. 

Iraq sued Turkiye in 2014 over direct sales from the KRG and asked for $33 billion in compensation. It has maintained that the KRG cannot use national pipelines to sell oil and that Turkey’s deal with the region violated a 1973 pipeline-transit agreement between the two countries. 

Bilgay Duman, coordinator of Iraq studies at the Ankara-based think-tank ORSAM, said that the case reflected the longstanding disagreement between Baghdad and the Kurdish regional administration. 

“Turkiye, which will respect the international arbitration ruling, showed its readiness to fulfill its obligations deriving from the international law and to contribute to the de-escalation of the disagreement between its two regional partners,” he told Arab News. 

He said that Turkiye’s deal with the KRG from 2013 had an indemnity clause that required any compensation to be paid by Irbil. However, he added: “To what extent the compensation that Ankara will pay to Iraq will be indemnified by the Kurdistan Regional Government is still unknown.”

According to Duman, the disagreement also arose from legal loopholes in Iraq about the control of newly discovered oil fields that were being exploited by the KRG.

Experts say that the ruling will hurt the KRG economy, which made $5.7 billion from oil last year.

“Baghdad appears to be ready to accept financial losses to gain sovereignty over oil,” said Yerevan Saeed, a research associate at the Arab Gulf Institute in Washington. “This has real-life consequences for Kurds in the Kurdistan region. The Kurdistan economy is heavily dependent on oil.” 

He said the suspension of oil sales raised both financial and security issues for the KRG. 

“The best way forward is for Ankara to play a constructive role by mediating between Irbil and Baghdad,” he said.

“If Turkiye and Baghdad are going to try to bypass the KRG to reach a state-to-state agreement, this could lead to a resurgence of Kurdish nationalism that will stir instability in the region,” he added.

Turkiye meanwhile would need to look to oil from Russia and Iran to fill the hole left by the loss of KRG oil.  

Rich Outzen, a senior fellow at the Atlantic Council, said the effects of the arbitration ruling would be felt most keenly in the KRG but also Iraq. “It will hurt Iraq too as long as oil is not flowing. Turkiye and Iraq will work a deal that will involve less than the full penalty in my view,” he told Arab News. 

Outzen said that the US, which provides budget support to Baghdad, should press for a quick deal with Ankara and resumption of trade. “Oil costs are affected as world oil prices increase. The latest ruling affects the Iraqi Turkish Pipeline, not trucks, so some may still move by truck,” he said.

Iraqi Prime Minister Mohammed Shia Al-Sudani recently paid an official visit to Turkiye, where he discussed a project to build a land and rail corridor from Basra to the Turkish border.


Jordan, UK ministers discuss boosting bilateral relations

Jordan, UK ministers discuss boosting bilateral relations
Updated 16 sec ago

Jordan, UK ministers discuss boosting bilateral relations

Jordan, UK ministers discuss boosting bilateral relations
  • Ahmad emphasized his country’s enthusiasm for the expansion of bilateral cooperation while expressing “great” appreciation for Jordan’s efforts to assist refugees

AMMAN: Ahmed Safadi, Jordan’s lower house speaker, on Wednesday met Tariq Ahmad, UK’s minister of state for the Middle East, North Africa, South Asia, and the UN, to help boost bilateral relations in parliamentary fields, the Jordan News Agency reported.

Safadi spoke of the “deep-rooted” friendship between Jordan and the UK and emphasized the importance of joint cooperation to serve common interests to achieve regional security and stability and boost support for the Palestinian people’s right to establish an independent state.

Safadi said Jordan was taking “confident” steps toward enhancing its political, administrative, and economic systems, and that the country had undertaken a “comprehensive” national project to achieve its development goals.

Ahmad said that the UK placed “remarkable” importance on Jordan’s role in the region, highlighting Amman’s “central and important” role in achieving security and stability in the Middle East.

He also stressed his country’s support for Hashemite custodianship over Jerusalem’s holy sites, as well as Jordan’s vision based on the two-state solution to achieve comprehensive peace.

Ahmad emphasized his country’s enthusiasm for the expansion of bilateral cooperation while expressing “great” appreciation for Jordan’s efforts to assist refugees.


French leader urges Lebanese parties to urgently elect new president, save country from ‘drowning’

French leader urges Lebanese parties to urgently elect new president, save country from ‘drowning’
Updated 31 May 2023

French leader urges Lebanese parties to urgently elect new president, save country from ‘drowning’

French leader urges Lebanese parties to urgently elect new president, save country from ‘drowning’
  • Emmanuel Macron made his plea following a meeting with Maronite Patriarch Bechara Boutros Al-Rahi
  • French judiciary has accused the central bank chief, his brother Raja Salameh, and his assistant Marianne Hoayek, of amassing a huge fortune in Europe

BEIRUT: French President Emmanuel Macron has urged Lebanon’s divided politicians to save the country from “drowning in crises” by immediately electing a new president.

The French leader made his plea following a meeting with Maronite Patriarch Bechara Boutros Al-Rahi.

A French presidency statement, issued on Wednesday, said: “Macron and Al-Rahi expressed their deep concerns about the crisis in Lebanon and the paralysis of institutions, which has been exacerbated by the presidential vacuum for the past seven months.

“They agreed on the necessity of electing a president for the republic without delay.”

The statement quoted Macron as highlighting, “the need to keep Lebanon’s Christians at the heart of the sectarian and institutional balance of the Lebanese state.”

The president described Lebanon as a country “drowning in crises” adding that “the political deadlock has been an obstacle to the reforms without which there can be no recovery and lasting stability in Lebanon.”

Lebanon has entered its eighth month without being able to elect a president.

Hezbollah and its allies support the Marada Movement leader, Suleiman Frangieh, who is close to Syrian President Bashar Assad, but the largest parliamentary blocs oppose him in favor of their own candidate, former minister Jihad Azour, currently the director of the International Monetary Fund’s Middle East and Central Asia department.

Agence France-Presse quoted sources in Paris as saying that, “Al-Rahi and Macron discussed bridging the gap between Lebanese parties to agree on a presidential candidate and complete the electoral process.”

No political party has the necessary majority to elect its presidential candidate in parliamentary elections. Other parties refuse to bring a compromise candidate and because of the impasse, Parliament Speaker Nabih Berri has not set a date for what would be the 12th attempt to elect a president.

The country is struggling with economic, financial, and administrative crises that the caretaker government has been unable to resolve due to its inability to authorize decisions except in exceptional cases.

When the term of Lebanon’s central bank governor, Riad Salameh, is due to terminate at the end of July, another key vacancy will appear in the country.

Salameh is being investigated by several European countries and the Lebanese judiciary over allegations of corruption.

He appeared before the public prosecutor of the Court of Cassation, Judge Imad Qabalan, on Wednesday at the Palace of Justice in Beirut to be questioned about an arrest warrant recently issued against him by the German public prosecutor on charges of money laundering, forgery, and embezzlement.

Salameh’s son, Nadi, and Marwan Issa Al-Khoury, were also named in the German arrest warrant without any demand for their arrest, but rather a request that Salameh be held accountable for them.

The French judiciary has accused the central bank chief, his brother Raja Salameh, and his assistant Marianne Hoayek, of amassing a huge fortune in Europe, including money and real estate, through complex financial arrangements and embezzlement of large sums of Lebanese public funds. Salameh’s lawyers have filed an appeal against the charges.

The Lebanese judiciary is still awaiting a response from their French counterparts over the possibility of merging the European and Lebanese files on Salameh and prosecuting him in Lebanon, to avoid extradition.

Meanwhile, Raja Salameh failed to appear before a Paris court on Wednesday, citing through his legal representative in Lebanon medical reasons for his absence.


Arab League chief meets Palestinian PM

Arab League chief meets Palestinian PM
Updated 31 May 2023

Arab League chief meets Palestinian PM

Arab League chief meets Palestinian PM
  • Meeting discussed the outcomes of a recent summit in Jeddah on issues relating to Palestine

CAIRO: Arab League Secretary-General Ahmed Aboul Gheit on Wednesday met with Palestinian Prime Minister Mohammad Shtayyeh while visiting the Egyptian capital Cairo, the Saudi Press Agency reported.

During the meeting, they discussed the outcomes of a recent summit in Jeddah on issues relating to Palestine, including Arab efforts to promote international support for the recognition of the Palestinian state.

They also agreed on the importance of working diplomatically to highlight the Israeli government’s approach to dealing with Palestinian issues.
 


Eritrea releases 166 Yemeni fishermen held for months 

Eritrea releases 166 Yemeni fishermen held for months 
Updated 31 May 2023

Eritrea releases 166 Yemeni fishermen held for months 

Eritrea releases 166 Yemeni fishermen held for months 
  • First group of 115 released fishermen arrived in the Red Sea town of Khokha on Tuesday
  • Second group of 51 arrived on the same day in the coastal region south of the port city of Mocha

AL-MUKALLA: Eritrean authorities have released 166 out of 267 detained Yemeni fishermen, but have refused to hand back their vessels or their personal belongings.

Locals said on Wednesday that the first group of 115 released fishermen arrived in the Red Sea town of Khokha on Tuesday, while a second group of 51 arrived on the same day in the coastal region south of the port city of Mocha.

The fishermen were detained by the Eritrean authorities five months ago while working in international waters.

A local fisherman, who requested anonymity, told Arab News: “We sent boats (to Eritrea) to transport the freed fisherman home because the Eritrean authorities refused to return their seized boats and other property. Their sole possession is the clothing they wear.”

The Yemenis have demanded that the authorities free the remaining 101 fishermen currently being held.

Hundreds of Yemeni fishermen have been jailed in Eritrea in recent years for allegedly violating Eritrean waters, a claim rejected by the Yemenis.

The dispute between Yemen and Eritrea over water rights in the Red Sea erupted into a brief conflict in 1995 over the island of Greater Hanish. A ruling later determined that the territory belonged to Yemen.

Separately, foreign envoys in Yemen and human rights organizations have condemned the Iran-backed Houthis for abducting 17 members of the Baha’i religious minority after attacking its gathering in Sanaa last week.

US Ambassador to Yemen Steven Fagin said in a tweet: “We condemn the May 25 Houthi raid on a peaceful gathering of Baha’i in Sanaa resulting in the forced disappearance of at least 17 people.

“We stand with the people of Yemen and their right to freedom of religion, expression, and association.”

Human Rights Watch also condemned the action while urging the Houthis to set those held free and refrain from persecuting religious minorities.

Niku Jafarnia, Yemen and Bahrain researcher at Human Rights Watch, said in a statement: “The Houthis have systematically violated the rights of minorities in Yemen and show no sign of letting up on the pressure.

“The international community should stand in solidarity with the Baha’i community and exert pressure on the Houthi authorities to release the detained people immediately.”

Yemeni organizations, including the Yemeni Network for Rights and Freedoms, also strongly condemned the actions of the Houthis.


Iran further escalates breaches of 2015 deal limits: IAEA

Iran further escalates breaches of 2015 deal limits: IAEA
Updated 31 May 2023

Iran further escalates breaches of 2015 deal limits: IAEA

Iran further escalates breaches of 2015 deal limits: IAEA
  • IAEA said that Iran’s estimated stockpile of enriched uranium had reached more than 23 times the limit set out in nuclear deal

VIENNA: Iran has significantly increased its stockpile of enriched uranium in recent months, continuing its nuclear escalation, a confidential report by the UN nuclear watchdog on Wednesday seen by AFP said.
The agency, however, noted progress in its cooperation with Iran and has decided to close the file on the presence of nuclear material at one of three undeclared sites, an issue which has poisoned relations between the two parties.
The reports came days before the board of governors of the International Atomic Energy Agency (IAEA) is due to meet to review progress in addressing the watchdog’s remaining concerns.
The nuclear watchdog said in its report that Iran’s estimated stockpile of enriched uranium had reached more than 23 times the limit set out in the landmark 2015 accord between Tehran and world powers.
As of 13 May, Iran’s total enriched uranium stockpile was estimated at 4,744.5 kilograms (10,459 pounds). The limit in the 2015 deal was 202.8 kilograms.
The report also said that Iran is continuing its enrichment of uranium to levels higher than the 3.67 percent limit in the deal.
Efforts to revive the Iran nuclear deal — which was left in tatters by the unilateral withdrawal of the United States in 2018 — have currently stalled.
The stockpile of uranium enriched up to 20 percent is now believed to be 470.9 kilograms — up 36.2 kg since the last report in February — while the amount enriched up to 60 percent stands at 114.1 kilograms, an increase of 26.6 kg.
Enrichment levels of around 90 percent are required for use in a nuclear weapon.
In a separate report, the IAEA said it has decided to close the file relating to the presence of nuclear material at one undeclared site after receiving a “possible explanation” from Iran.
The watchdog “has no additional questions... and the matter is no longer outstanding at this stage,” the report said of the site at Marivan in Abedeh county.
The IAEA had reported the discovery of traces of radioactive material at three sites not declared by Iran, in a blow to efforts to restore the 2015 deal.
The Marivan site in the southern province of Fars is the first to be addressed under a work plan agreed by Iran and the IAEA in March.
The other two sites are Varamin and Turquzabad.
Iran has always denied any ambition to develop a nuclear weapons capability, insisting its activities are entirely peaceful.