The Ministry of Natural Resources in the Kurdistan Region issued a statement on Monday reiterating that the Iraqi federal government is responsible for covering the entire cost of oil production and transportation within the Region.

According to the ministry's press release, these expenses are clearly outlined in the budget law and are, by law, the responsibility of the Iraqi government.

The Kurdistan Regional Government (KRG) has consistently upheld its obligations as specified in the budget law, which includes delivering an average of 85,000 barrels of oil per day to the federal government since June of this year.

In light of its commitment to the Iraqi constitution and the protection of its constitutional rights, the KRG places a specific emphasis on securing its rightful share of the federal budget. Delays in disbursing these funds, however, have posed challenges in promptly paying salaries to public servants, prompting calls for the central government to adhere to the agreements established with the new cabinet in Baghdad.

The recent decision by the Iraqi Council of Ministers, taken on September 3, to unilaterally allocate 500 billion Iraqi dinars (equivalent to over $384 million) in loans for covering salaries in the Kurdistan Region has been met with criticism by the KRG, primarily due to a lack of prior consultation.

This development underscores the ongoing financial and budgetary challenges facing the Kurdistan Region and the need for continued dialogue and cooperation between the regional and federal governments to address these issues.