The Kurdistan Regional Government (KRG) has reached an agreement with the Iraqi federal government to allow for the resumption of oil exports through Turkey.

According to a statement from the KRG's Ministry of Natural Resources, on May 10th, Iraq's State Oil Marketing Organization (SOMO) officially requested that Turkish authorities allow the Kurdistan Region's oil exports via the Ceyhan port.

Both the KRG's Ministry of Natural Resources and Iraq's Ministry of Oil are now reportedly waiting for Turkey's response before resuming oil exports.

This agreement marks a significant development in the longstanding dispute between the KRG and the federal government of Iraq over oil exports and budgetary issues. In 2014, the KRG began independently exporting oil through Turkey, bypassing the federal government, leading to tensions between the two sides.

The dispute led to the suspension of oil exports from the Kurdistan Region through the Ceyhan port in April 2020, following a decision by the federal government to cut the KRG's budget. Since then, negotiations have been ongoing between the two sides to reach an agreement that would allow for the resumption of oil exports.

The KRG is a major oil producer, with estimated reserves of around 45 billion barrels. The resumption of oil exports is expected to provide a much-needed boost to the region's economy, which has been hit hard by the COVID-19 pandemic and the ongoing dispute with the federal government.

The agreement also comes ahead of Iraq's parliamentary elections, scheduled to take place in October of this year. The resumption of oil exports is likely to be a key issue for voters, as it is a crucial source of revenue for both the KRG and the federal government.