The Kurdistan Regional Government (KRG) has taken significant steps to resume oil exports, which have been frozen since March 2023, leading to substantial losses for both the region and the broader Iraqi economy. During its weekly cabinet meeting on February 19, 2025, led by Prime Minister Masrour Barzani, the KRG underscored the urgent need to restart these exports, which are pivotal for financial recovery and stability.
The suspension of oil trading has inflicted millions of dollars of losses on Iraq's public revenues, raising alarms among KRG officials. Prime Minister Barzani firmly addressed the situation, describing the halt of oil exports as detrimental not only for the Kurdistan region but for Iraq as a whole.
According to sources from the KRG, Barzani expressed deep concern over the impact of these economic constraints during the cabinet meeting, stating, "The KRG calls for the resumption of oil exports at the earliest, as this is beneficial for all parties involved." This statement reflects the government's proactive ambition to regain lost revenue and alleviate the economic strain resulting from the oil export suspension.
During this meeting, the KRG reaffirmed its commitment to the rights of its farmers and landowners, emphasizing the legal obligations set by Iraq's Law No. 3 of 2025, aimed at returning land to rightful owners from historical injustices. This law is seen as pivotal for restoring the rights of those affected by previous regimes and reinstates local farmers to their rightful positions, thereby boosting local economies which rely on agriculture as well.
Further, the cabinet meeting also addressed the outcomes of recent discussions between the KRG's Ministry of Natural Resources and the Iraqi Ministry of Oil. The collaborative efforts focused on implementing Law No. 5 of 2025, which was enacted to facilitate technical processes for resuming oil exports.
Barzani emphasized the importance of close coordination with the federal government, directing the Ministry of Natural Resources to collaborate with Iraq’s federal oil ministry without delay. He remarked, "We directed the Ministry of Natural Resources to coordinate with the federal oil ministry without delay," highlighting how integral this partnership is to reviving oil exports effectively.
The growing deficit due to the stalled oil flow is compelling enough to rally cooperation among both governmental factions. Local reports have detailed losses running to billions of dollars, emphasizing the dire need to address the systemic issues preventing exports. “The halt of oil exports has resulted in billions of dollars lost from public revenues,” noted KRG channels following the cabinet discussion.
Addressing systemic growth challenges, Barzani also reflected on the broader strategies needed to reinvigorate the Kurdistan region's economy. He urged all ministries to work cohesively to overcome challenges related to industry regulations and enforcement processes, ensuring there's no redundancy or overlap with federal controls, which often delays operational capabilities.
Outside the immediate ramifications of lost revenue, the geopolitical dimensions of oil exports hold significant weight. Iraq's oil industry has been under scrutiny from international stakeholders, and the lack of clarity surrounding Kurdistan’s producing offshore and onshore capabilities hinders foreign investment necessary to bolster the local economy. Hence, the KRG's initiative to resume exports aims not just at addressing current revenue shortfalls but also at reassuring investors of the region's commitment to long-term economic stability.
Despite the challenges faced, Barzani remains optimistic about the eventual outcome of these efforts. He concluded the meeting with strong words of encouragement, asserting, "All parties must work together to resolve these economic challenges to benefit the region as they truly are worthwhile and necessary."
Going forward, the KRG's agenda is clear; it seeks to impact growth positively via oil exports and related economic avenues, aspiring to restore its standing within the broader Iraqi economic framework.