KRG employees are waiting on their July salaries, see hope as Iraqi PM announces oil export resumption to Turkey

After years of disputes between Baghdad and the Kurdistan region, a new oil export deal aims to resolve the salary crisis straining KRG public sector workers. 

In spite of the agreement, as of Thursday, public sector employees in the Iraqi Kurdistan region are still awaiting their July salaries.

The current hardships originated in 2014 when the region began selling oil independently, leading to salary delays for KRG employees. Subsequent drops in oil prices and the conflict with the Islamic State intensified the crisis. In 2016, the KRG froze pay rises for all public sector employees, citing financial constraints.

Amid ongoing setbacks, a significant development occurred Thursday: Prime Minister Shia al-Sudani announced Iraq will resume Kurdish region oil exports to Turkey after a two-year pause, calling it a historic agreement.

Under this agreement, Iraq's state oil marketing company, SOMO, will export crude from Kurdish oil fields via the Kirkuk-Ceyhan pipeline to Turkey.

Exports through the pipeline stopped in March 2023, after the International Chamber of Commerce ordered Turkey to pay Iraq $1.5 billion for unauthorised Kurdish exports. 

Meanwhile, the salary suspension has halted vital sectors like education and health. This persists despite Iraq's Supreme Court ordering the government not to withhold regional payroll funding for political reasons, highlighting the ongoing crisis.

Othman Gulpi, a teacher and activist from Sulaimaniyah, told The New Arab that most teachers are boycotting classes with the new school year underway, as they cannot afford to live or teach without other jobs.

Gulpi added that authorities are aware of the hardships public employees face, particularly teachers. Now, teachers typically attend classes only three days a week; education continues, but the system is failing. Most must look for other work, but high unemployment limits options.

He also noted that, while no teacher-led protests are planned, educators plan to join larger demonstrations involving other workers, vendors, and the families of students.

An English teacher at a preparatory school in Sulaimaniyah, speaking anonymously to TNA, stated that some schools remain on strike, while others operate only two or three days a week. The teacher warned that if salaries for July 2025 and subsequent months remain unpaid, further strikes are likely. Although rare, second jobs are increasingly seen as necessary.

Baghdad was saying it cannot pay the KRG unless the region transfers most of its oil and half its local revenue. The KRG states that it cannot pay its employees solely with its own income, pending a final agreement with Baghdad.

Baghdad claims it cannot pay KRG salaries without control over most oil and half of the local revenues. Meanwhile, KRG insists it cannot meet payrolls without Baghdad’s support, stalling a resolution.

US and Kurdish officials have welcomed the deal. US Secretary of State Marco Rubio said in a post on the X platform, "We welcome the announcement that the Government of Iraq has reached an agreement with the Kurdistan Regional Government and international companies to reopen the Iraq-Turkey pipeline. This deal, facilitated by the United States, will bring tangible benefits for both Americans."

KRG Prime Minister Masrour Barzani stated that the agreement with oil companies and SOMO has been reached following months of negotiation and effort. Now, Kurdistan's oil will again enter the global market. He also said that the government remains committed to constructive dialogue and cooperation to resolve outstanding issues.