MESOP : THE OBAMA POLICY SPLITTED AS USUAL – US diplomat calls on Kurds not to sell oil, Baghdad not to punish Erbil

25.05.2014 – BasNews, Washington – The US Deputy Assistant Secretary of State for Near Eastern Affairs Brett McGurk Tweeted that Iraqi Kurds should not sell oil without Baghdad’s approval. He also  called on Baghdad not to punish Kurds with salary cuts.

McGurk has tried to play a mediating role between Baghdad and Erbil by visiting Kurdish and Iraqi politicians to mend deteriorating political ties between Baghdad and the Kurdistan Region over oil exports and the federal budget.

On Friday, Iraq filed for arbitration against Turkey to stop independent oil exports from Kurdistan after European markets bought the first load of oil piped from the Kurdish autonomous region reported Reuters. On Twitter, McGurk called the independent sale of oil without Baghdad’s approval unfortunate, “This is an unfortunate development given the reasonable deal that has been on the table with benefits for citizens in all parts of Iraq. Our position: the US does not support export of oil from any part of Iraq without the appropriate approval of the federal government.”

Äccording to McGurk this position is based on careful assessments of pathways to stability, economic models to maximize growth, existing laws, political risks. “We have informed all interested parties that any such transactions exposes them to potential legal risks. This does not mean we take sides in internal disputes within Iraq.”

This possibly refers to an international treaty between Iraq and Turkey that restricts Turkey from allowing Kurdish oil exports without Baghdad’s approval.

“Our aim is to encourage measures that have the broadest-possible consensus and help pull the country together. Thus, we have worked intensely with all sides to forge a long-term solution on matters of energy exports and revenue sharing,” McGurk said.

The US was involved in a proposal for all sides to resolve legal uncertainty over KRG exports and guarantees auto transfers for all revenues derived from KRG oil to Erbil, suggesting this would result in substantial revenues for the Iraqi people and the KRG. “We have encouraged the KRG to accept such a deal, thereby guaranteeing monthly revenue allocations based on Iraq’s total output.”

Nevertheless, the US also called on Baghdad not to push the Kurds. “We have also encouraged the GOI to guarantee full monthly revenue transfers to Erbil, regardless of budget deadlock. No excuses. We have and will continue to make clear that unilateral measures from any side contributes to instability.”

According to the US, the measures Baghdad and Erbil take only lead to more escalation. “The tendency on all sides to believe unilateral measures build “leverage” in future talks rarely works, and often backfires, badly. “For all of these reasons, we will continue to urge both sides to return to serious discussions as soon as possible. Leaders in Baghdad and Iraq’s Kurdistan Region should not miss this opportunity to benefit the people they serve over the long-term,” McGurk concluded.

The KRG’s head of Foreign Relations Falah Mustafa Bakir suggested it is better for the United States to stay silent, and allow the Kurds to export oil independently.