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Clarification by the Central Bank of Iraq - so I assume its a planed moved rather than a threat as posted on Kurdistan 24?:
https://shafaq.com/en/Economy/The-legal-basis-for-depositing-oil-revenues-in-the-US-Federal-Reserve-CBI-clarified
Shafaq News/ The Central Bank of Iraq (CBI) clarified on Monday the legal rationale behind depositing oil revenues in the US Federal Reserve.
Documents released by the bank and seen by Shafaq News agency state that "the legal basis for depositing oil revenues in the Federal Reserve Bank in New York under the IRAQ2 account instead of the Development Fund for Iraq (DFI) is linked to the expiration of Executive Order 13303 issued by the US President in March 2003. This order granted immunity to Iraqi funds deposited in the DFI account at that time. Furthermore, the protection of Iraqi funds provided by UN Security Council Resolution 1483 of 2003 ended with the issuance of UN Resolution 1956 at the close of 2010."
The documents elaborate, "Hence, the IRAQ2 account was established to receive proceeds from Iraqi crude oil exports, subsequently transferred to the Central Bank of Iraq's account at the Federal Reserve Bank within 24 hours to safeguard them from creditors' claims. These funds are categorized as belonging to the Iraqi government, derived from crude oil exports. This arrangement was formalized through a Memorandum of Understanding signed between the Iraqi Ministry of Finance and the Central Bank of Iraq on 2/6/2014, which serves as the legal framework for the IRAQ2 account as an alternative to the Development Fund for Iraq account."
The documents clarify, "Immunity granted by these documents is applicable solely to sovereign funds and does not extend to funds utilized for commercial purposes."
Addressing the third paragraph, the documents detail that "foreign reserves may be deposited with various external entities, central banks, and financial institutions, not limited to the Federal Reserve Bank. Interest rates vary based on investment category, duration, and the institution. Additionally, Orient, the contracted shipping company, transports dollar shipments from the Federal Reserve Bank to Baghdad International Airport, with insurance at $414,000 per shipment and transportation fees of $216,310 provided by the Legislative Affairs Department, Parliamentary Oversight Division."
Furthermore, they state, "Domestic transfer of oil sales revenues is impractical due to operational constraints, risking Iraq's financial operations if funds remain within the country. Closing the Federal Reserve Bank account could expose Iraq to international claims and hinder settlements in US dollars without an account at the Federal Reserve Bank or another American commercial bank."
So why is it so hard to buy shares today when the price is dropping. Had to split my purchase to 2 x 5K to get a deal through, why is this ?
Q1:when the pipeline contract runs out ….. how will the IOCs struggling in Kurdistan export ?
Q2: when does GKP’s fragile contract with Erbil run out ??
Nothing will happen!!
Local sales for 18 months and wait for Iraq's pipeline contract to run out .
It's a no brainer for kurdistan and turkey t detach themselves away from these idiots once and for all.
If not its a painful way forward for many decades.
The opportunity is to free themselves now.
Https://www-nrttv-com.translate.goog/detail/35707?_x_tr_sl=ckb&_x_tr_tl=en&_x_tr_hl=sv&_x_tr_pto=wapp
"The two Iraqi Oil Ministries and the Kurdistan Regional Government (KRG) are in talks on their agreements on oil exports and the understandings are expected to have positive results in the near future. "The priority of the Iraqi government is to resolve the oil issue through legal and constitutional means and for this purpose they have met with Turkey to determine the transportation fee for a barrel of oil,"
Iv been hoping that for the last 18 years
Robin, good to see such a statement. Turkey and Iraq need the money.
Rgds Sft
Iraq has estimated to lose around $14 Billion in lost revenue this year according to my Calcs,
they have announced $36 Billion, if they had settled the dispute with KRG this cold have been much closer to $50 Billion,
the Ordinary Iraqi, will lose out due to this lost revenue which could have built so much infrastructure .
A Year Lost,!!!!! cant buy back time
Also, although having recognised the turn against the AKP, Erdogan has reiterated his commitment to regaining fiscal improvement in his statement but included in his main foreign policy statement is to deny the Kurds in gaining an independence foot hold in Syria. So it still demonstrates a dependence on the Iraqi Kurds supporting such and that is a clear indicator on what will be the conditions layer down in the pipeline negotiations. The Iraqi Kurds reaming between a rock and a hard place.
How much influence the US have (or want to have) in the region and their support for the Iraq Kurds remain to be seen.
As before, are Turkey and the Iraq goverment feeling free to squeeze freely and how do the kurds keep unity against such.
I am not so sure on how they could go it alone once the "contract" expires. Difficult senario for them.
All imo limited opinion.
Rgds Sft
To the sound of Eminem "Without Me"
Uncertainty in Turkey, none the less Erdogan is around for a while yet (2028) and the country needs income revenue that an OPEN and flowing pipeline desperately add to.
https://foreignpolicy.com/2024/03/13/turkey-erdogan-elections-istanbul-ankara-local-akp/
Rgds Sft
Trades like a neurotic donkey, up this morning down now and probably close higher...
One of these weekends, I'm hoping not to be in.
Energy stocks back in play, oil price very bullish ,
GKP financially sound , just a matter of time for a deal to be done ,
GLA LTH hope you have all been buying recently,
Easily double money from here over next few months
Be interesting to see what Kurdistan do if Iraq do decide to try and bypass Kurdistan, (I'm not up on the territory though, did someone suggest it goes through Kurdistan anyway?), back to trucking operations till the pipeline contract ends? Other?
Not a lot just more eastern promise!
https://www.iraqoilreport.com/news/pipeline-repairs-raise-prospect-of-alternate-turkey-export-route-46408/
So what happened over the weekend? Did I miss something?
Too late…. many private choppers seen departing the area, heavily laden with all of the spoils of the Lirpa Loof mining PLC.
In Iraq I believe the Ministries were allocated to factions that made up Sudani’s coalition. I now think that is not just at ministerial level or the top echelons, it’s the whole entity.
So the by-product is that the two governments agree political and technical solutions at Prime Ministerial level, Sudani and his advisors on behalf of Iraq, BUT once it gets to the implementation stage at Iraqi ministerial level, they blatantly refuse to carry out his wishes.
The conduct of both the Oil and Finance Ministries reflect just how confident they are that their power cannot easily be taken away. They miss every deadline they are set, at least one minister makes up the content of their press interviews and has been called out for doing so, without any come back.
Once allocated those ministries, I believe their power cannot be taken away unless there is a complete restructuring of the coalition.
Can Sudani risk attempting to get those very important areas under more favourable control?
Lots of references on here to pressure building, will there be a safe release combined with a positive outcome or a very destructive explosive outcome?
Oh and by the way of today’s date, I’ve just been reliably informed that Gold and diamonds have been discovered on land that GKP has a right to the share and GKP shareholders will all be given their share.
Happy April Fools Day !!!!!!
Yes I do agree something is about to “give.” Hopefully via U.S. pressure that might be greater in practical economic terms than the Iranian influenced politicians can prevent as a means to ‘punish and control’ Kurdistan. If not via U.S. pressure perhaps the often proposed visit of Erdogan (If it does happen at long last) will be the time when grand agreements are made in the pretence that Iraq and Turkey are the best of friends. On that subject can anyone more knowledgeable than
I am myself with regards to Turkey’s politics let us / me know what effect Erdogan defeat in this week’s elections might have with regards to Western interests, including western international oil companies operating in Kurdistan.
Personally I wouldn’t like to be short GKP this month.
Oh and by the way of today’s date, I’ve just been reliably informed that Gold and diamonds have been discovered on land that GKP has a right to the share and GKP shareholders will all be given their share. 🤣
IMO Sudani is siding with the Kurds. The problem is some Shiite members of his coalition are not on the same page and they just happen to be in control of the oil and finance ministries.
On Saturday sudanis spokesman said budget to be approved within two weeks https://ina.iq/eng/32036-council-of-ministers-will-approve-the-budget-schedules-within-two-weeks.html .
Today a spokesman from finance ministry contradicted that says the budget schedules have been put on hold. https://shafaq.com/amp/en/Economy/Lawmaker-attributes-the-delay-in-budget-approval-to-rising-deficit
We now see Sudani firing back with this article tonight where he is calling out members in his own government.
https://www.kurdistan24.net/ar/story/47806-%D9%86%D9%87%D8%B1%D9%88-%D8%B1%D9%88%D8%A7%D9%86%D8%AF%D8%B2%D9%8A:-%D9%88%D9%81%D8%AF-%D9%85%D9%86-%D9%88%D8%B2%D8%A7%D8%B1%D8%A9-%D8%A7%D9%84%D9%86%D9%81%D8%B7-%D8%A7%D9%84%D8%A7%D8%AA%D8%AD%D8%A7%D8%AF%D9%8A%D8%A9-%D8%B3%D9%8A%D8%B2%D9%88%D8%B1-%D8%A5%D9%82%D9%84%D9%8A%D9%85-%D9%83%D9%88%D8%B1%D8%AF%D8%B3%D8%AA%D8%A7%D9%86
Its in sorani - google translation:
Erbil (Kurdistan 24) - Deputy Chairman of the Oil and Gas Committee in the Iraqi Parliament, Nehru Rawandzi, confirmed on Sunday that some officials in the government of Muhammad Shia al-Sudani and the Federal Ministry of Oil have a plan to undermine the constitutional entity of the Kurdistan Region.
Nehru Rawandzi said in a statement to Kurdistan 24 that a technical and legal delegation from the Federal Ministry of Oil, under the guidance of Federal Prime Minister Muhammad Shia al-Sudani, will visit the Kurdistan Region.
According to Rawandzi, the delegation of the Federal Ministry of Oil is scheduled to meet during the visit with the Ministry of Natural Resources of the Kurdistan Regional Government, in addition to oil companies operating in the region.
The Deputy Chairman of the Oil and Gas Committee in the Iraqi Parliament explained that the aim of this visit is to resolve the issue of extracting and producing oil from oil wells in the Kurdistan Region, in addition to discussing the resumption of the region’s oil exports.
Regarding the timing of the visit, Rawandzi stressed that the delegation of the Federal Ministry of Oil should visit the Kurdistan Region, before the scheduled visit of the Federal Prime Minister to the United States.
He stressed that "some officials in the government of Muhammad Shia al-Sudani and the Federal Ministry of Oil are seeking to obstruct the resumption of the export of Kurdistan Region's oil, and they have a plan to undermine the constitutional entity of the region."
He pointed out that the issue of resuming oil exports is more political than an economic issue, as the federal government is using this issue as a means of putting pressure on the Kurdistan Region, and therefore international pressure should be exerted on the federal government to address this.
One way or another something has to give i
Not sure about that, seems to me that there are too many ducks lined up here for something significant not to progress in the next few weeks, but as you say this is iraq so who knows.
Nothing will happen like it hasn't for the last 15 years!!
Iraq is not interested in the pipeline opening surely you can all see that now .
Play out local sales for the next 18 months and Iraq ties will all be gone . Independents baby and kurdistan is free from them ever. Its an absolute no brainer now.