Thread: Archive Latest News - Think Tank - 01/01/08 - 14/04/08

Kurds fume over al-Maliki's weaknesses
Demands, including Peshmerga budget, must be addressed, say Kurds.

Kurdistan Region doesn't consider the Peshmerga army to be a militia, but a very important regular and academic army that guards a region of Iraq, the Kurdistan Region.

The KRG wants to merge the Peshmerga army with the Iraqi army, with the Baghdad government assuming responsibility for the Peshmerga's payroll, which still receives its salary from the regional government.

Sources say Kurdish leaders recently sent a strong message to Iraqi Prime Minister Nuri al-Maliki, criticizing him for not being able to work with the KRG to solve the Kirkuk, oil contract, and Peshmerga issues.

Kurdish leaders say al-Maliki's government is weak, and the only ally it has is the Kurds. Some have said that if al-Maliki does not fulfill Kurdish demands, then Kurds will seek an alternative.

"If al-Maliki doesn't consult with the Kurdistan coalition (KC) and some other Iraqi parties about political, security, and economic decisions, his government can't continue," said Mahmud Osman, a prominent Kurdish lawmaker.

Regarding the message sent by Kurdish leaders to al-Maliki, Osman said if al-Maliki doesn't fulfill Kurdish demands, then Kurdish leaders should make it clear to Maliki that Kurdish decisions are more than just words.

The message came after the two main Kurdish parties, the Kurdistan Democratic Party, led by Massoud Barzani, and the Patriotic Union of Kurdistan Party, led by Jalal Talabani, signed a trilateral memory of understanding with the Iraqi Islamic Party, led by Tareq al-Hashemi.

Last month, a high-ranking Kurdish delegation headed by Kurdistan Region Prime Minister Nechirvan Barzani visited Baghdad to discuss several controversial issues, including Kirkuk, Peshmerga, oil contracts, and the region's 2008 budget.

In a recent press conference, Kurdistan Region President Massoud Barzani expressed his regret over the visit, which produced no forward movement. "Sadly, the Kurdish delegation returned without achieving any results," Barzani said.

The Kurdistan government says the Iraqi Defense Minister on October 2007 agreed to supply the budget for around 80,000 Peshmerga forces, but al-Maliki has yet to approve the agreement.

Kurdistan Parliament speaker Adnan Mufti attempted to calm Kurdistan's disputes with Baghdad, however, describing them as "normal."
"I believe disputes with the central government will be resolved in 2008 by means of negotiation," said Mufti.

The KRG seeks to allocate an extra sum from the Iraqi Defense Ministry's budget for Peshmerga salaries, currently paid through the regional government's share of the national oil revenue.

Last month, Kurdistan Parliament unanimously approved a Peshmerga forces' Service and Retirement Law submitted by the region's government.

KRG's Peshmerga Minister, Omar Othman, explained that the law was drafted in accordance with the Iraqi Military Service Law. "The Peshmerga forces are entrusted with protecting the region, but at the same time they are part of the Iraqi forces," Othman said.

Peshmerga forces are not only keeping security in Kurdistan, but they are also sustaining security in other parts of Iraq. More than 2,000 Peshmergas are now operating in Diyala province, the stronghold of al-Qaeda, upon the request of the Iraqi government and coalition forces.

The official spokesman for the Peshmerga, Kurdistan's protection forces, said on Thursday that the forces are ready to be sent to Kirkuk to protect the Baiji-Kirkuk road.

Kurds fume over al-Maliki's weaknesses | Iraq Updates

Tehran seeks a timetable for new talks as US pressure increases

As the new round of talks between Iran and the US on Iraq is expected soon, political analysts in Baghdad say Iran has begun to see the talks as a means to pressure them, and is seeking a timetable before any discussions get underway.

This, analysts say, is an indication that Iran may be the losing party if talks continue.

"The Iranians are aware that any new round of talks with the US means putting more pressure on them. Besides that, the Iranians realise that any security support for Iraq means supporting the American army in Iraq," Qah'tan Al Sumaidi, a former security expert at the Iraqi Interior Ministry, told Gulf News.

"I think Iranians blame Iraqi Prime Minister Nouri Al Maliki and [Shiite coalition leader] Abdul Aziz Al Hakim, who played a key role in convincing Iran to talk with the US and thus subjected them to US pressure."

Despite the official Iraqi and US praise Iran has received since halting its support for armed Shiite militias in Iraq, the US wants Iran to take further steps in supporting Iraqi security.

Support for militants

Jaafar Eisa Mustafa, a political analyst, told Gulf News the Iranians may have miscalculated things.

"Iranians did not prepare for talks with Americans. Iran thought they would be the winners, but the rounds proved that Iran is the party that receives commands," says Mustafa. "[Iran] was told it must stop supporting militias with money, weapons and border control and that it must use its influence to disarm militias," he said.

"As there is endless list of US and Iraqi requests, it is certain that Iran will seek a timeline," says Mustafa.

However, many political forces in Iraq believe the Iranian moves to support security in Iraq are only "tactical steps".

"Iran is not so naive. There are US and Iraqi pressures to support security yet Iran implements what is appropriate for its policy," said Salam Abdul Bari, of the National Accord Party.

"I think all moves taken by Iran are tactical steps and the Americans are aware of that. I am certain the talks started to embarrass the Iranians and put them in the face of responsibilities and concessions to lessen their influence in Iraq," he added.

"Americans are running the negotiations wittily and thus the Iranians are trying to set a timetable for the talks so they do not take any step that might affect their powerful influence in Iraq, and turn them to the biggest loser," said Bari.

Tehran seeks a timetable for new talks as US pressure increases | Iraq Updates

Kurds deny intension to boycott al-Maliki government
Talabani: Kurds had no intentions of withdrawing Kurdish ministers from the government.

During a joint press conference Saturday in Erbil, Iraqi President Jalal Talabani said Kurds had no intentions of withdrawing Kurdish ministers from the Iraqi government, and he emphasized dialogue to resolve lingering disputes between the KRG and the Iraqi central government.

"We call on dialogue and negotiation with Prime Minister Nuri al-Maliki to resolve all issues related to Kurdistan Region and the central government," Talabani told reporters in Erbil after a meeting with Kurdistan President Massoud Barzani. Both were addressing political issues on the Kurdistan and Iraqi levels.

The unconfirmed reports of a boycott came after the Kurdish deputy in Iraq's Parliament, Mahmud Osman, hinted at the possibility if they received no response to their demands on certain issues.

Osman announced that negotiations between Erbil and Baghdad were set to resume when Prime Minister al-Maliki and President Talabani both return to the capital.

Al-Maliki arrived in Baghdad on Saturday after receiving medical treatment in London, while Talabani is in Kurdistan Region to answer local questions from Kurdish leaders.

A Kurdish high delegation, led by KRG Prime Minister Nechirvan Barzani, met with the central government in Baghdad last December on issues including Article 140 of the Iraqi Constitution, the Peshmarga budget, and oil contracts signed by the KRG with foreign companies and the Iraqi government's objections to them. Sources say negotiations will continue, but there was no specific outcome from the meetings.

Kurds, the second largest bloc in Iraqi Parliament with 55 of 275 Parliament seats, have shown patience in using the pressure card of withdrawal in order to have their demands met. However, Kurdish support remains the only guarantee for al-Maliki's government to continue.

"We have no problems and we keep good relations with the KRG and the Kurds..." PM al-Maliki told a London-based Arabic newspaper, Sharq Al-Awsat (The Middle East), on Saturday. "But all these are governed by the Constitution and national interest," he said, adding that his government objects to any acts that contradict the Constitution.

Kurds deny intension to boycott al-Maliki government | Iraq Updates

Rafidain Bank deposits are 16 trillion dinars and its profits 321

General Director of Rafidain Bank, Abdul-Hussein Al-Yasiri, said the bank's deposits during the past two years hit $16 trillion Iraqi dinars and its profits amounted to nearly 321 billion dinars.

Al-Yasiri announced, at the first Conference of Public Administration of Rafidain Bank currently being held in Najaf and attended by managers of the bank branches in central and southern governorates, that the bank is determined to open new branches in Najaf within the new plan of the bank in 2008 for the development of banking services.

The governor of Najaf, Asaad Sultan Abu Kalal, called for granting the bank's branch manager in Najaf the authority to grant letters of guarantee up to fifty million dinars, and the purchase of armored cars to the banks to facilitate the transport and withdraw of cash. He also called on the bank to include the support of reconstruction projects in provinces and regions in its plan, as well as the support of agriculture by granting loans to farmers, the fight against corruption, helping entrepreneurs by giving them loans and bank guarantees and the speed in completion of work.

Rafidain Bank deposits are 16 trillion dinars and its profits 321 | Iraq Updates

Syria charges price of fuel of trucks crossing into Iraq

Syrian Customs Administration asked the comp****t authorities to charge the price of fuel of trucks crossing into Iraq at international price.

The Syrian official newspaper "Al-Thawra" said, "the Department of Customs has been directed to allow trucks destined for Iraq, irrespective of their country of registration, and supplied with no more than 1200 litres of fuel for refrigerated trucks and 1000 liters for regular trucks to leave after charging price differential at international diesel price."

The diesel fuel is sold in Syria at subsidized prices of 14 cents per liter while the world price about 80 cents.

The Syrian government has decided to sell oil derivatives to embassies and diplomatic corps operating in Damascus at international price.

Syria charges price of fuel of trucks crossing into Iraq | Iraq Updates

Shell and Total square up over gasfield in Iraq’s Sunni heartland

Shell and Total are vying to develop a huge gasfield in what was Iraq’s most violent province as a source for exports to Europe.

The Iraqi Government held talks with a number of potential companies last week regarding development of the Akkas field in Anbar province, northwest of Baghdad.

Akkas, close to the border with Syria, is thought to contain up to seven trillion cubic feet of gas – up to 6 per cent of Iraq’s estimated total of 112 trillion cubic feet. The field is capable of producing up to 50 million cubic feet a day, but this could be raised to 450 million cubic feet per day if developed further.

The Iraqi Government is keen to get the field operational as quickly as possible, using nearby Syria as an export route to Europe to restore revenues. A statement from Shell said that the Iraqi Oil Ministry had asked Shell to undertake “a long-term production test”. Total was unavailable for comment, but is also understood to be interested.

In the longer term, both Western oil giants hope to win an equity stake in the project, which would also provide a toehold for further long-term exploration and development in Iraq, which has the world’s third-largest oil reserves.

The development of Akkas could mark a turning point in the fortunes of Iraq’s oil industry. Anbar is dominated by Sunni tribal groups who were fiercely opposed to the 2003 United States-led invasion. Until recently, it was the scene of some of Iraq’s most intense violence, including inter-factional fighting and attacks on US and Iraqi government troops. Since last summer the security situation has improved and that has encouraged the oil giants to look again at the area, which includes the country’s western deserts. Akkas is 40km from the Syrian border and is close to existing government-owned facilities in Syria. Shell has been active in Syria for 25 years and operates a joint venture with the Syrian Government and Chinese and Indian partners.

It is not yet clear whether the Iraqi Government will pick a Western oil major, such as Shell or Total, to help to develop the field. It may opt, instead, for a partnership with an oil services company, such as Halliburton or Schlumberger, which would then supply the technical expertise to develop the field and related pipelines to Syria for processing and export.

Last month, Ahmad al-Shammaa, Iraq’s Deputy Oil Minister, said that the Government had been hoping to issue a first round of tenders for a number of oilfields early this year.

They are expected to concentrate on the redevelopment of Akkas, as well as other fields such as Rumeila South, Rumeila North, Subba/Luhais, Zubair and Missan in southern Iraq, and Kirkuk in northern Iraq.

Before the effort to depose Saddam Hussein, Iraq signed a preliminary agreement with Syria to supply it with 50 million cubic feet of gas a day from the Akkas gasfield. The Syrians are eager to revive this agreement.

The development of the Akkas field could yet be bogged down by political concerns. The Iraqi Government has not yet passed a long-awaited hydrocarbon law that would determine how oil and gas revenues are distributed.

Slow progress has been made so far because of a dispute with the Kurdish autonomous region over its right to develop Northern Iraqi oilfields without supplying proceeds to the central government in Baghdad.

Shell and Total square up over gasfield in Iraq’s Sunni heartland | Iraq Updates

ISX higher by 0.33%

The Iraqi Stock Exchange (ISX) index increased by 0.33% on Tuesday compared to the previous session on Thursday, closing at 34.750 points.
Traded shares in Tuesday's session exceeded 832 million at a total value of 1.181 million U.S. dollars by implementing 281 contracts in the banking sector.

Non-Iraqi investors participated with over 6 million shares, totaling more than 11 million Iraqi dinars by implementing eight contracts.

According to the daily analysis of the capital market, the banking sector's index closed at 36.45 points, 1.109% higher than the previous session, while the industrial index, in which seven companies traded, ended at 11.25 points, 0.99% lower than the previous session.

The statement concluded that 26 companies were traded in Tuesday's session out of 94 companies registered in Iraq's Stock Exchange, of which fourteen indexes went up, eight dropped, and four maintained their previous price.

ISX higher by 0.33% | Iraq Updates

$700 million to increase the ration card items

Minister of Finance denied, on Monday, any intention by the government to cancel the ration card, and said that the ministry will allocate $700 million to increase its items.

The minister, Baqir Jabr Solagh, said in a statement, "The government will not reduce the ration card, but would cancel it for those in the degree of General Director and higher. The Ministry of Finance gave a
deadline of six months to improve items of the ration card; it will allocate an $700 million to the Department of Commerce to increase the items of the card and there is another $500 million ready in case the Ministry of Commerce required an additional budget."

The presidency of the Parliament discussed on Monday with the Deputy Prime Minister and the ministers of finance and trade supporting the items of the ration card in 2008 and the attendees agreed to keep the support of the ration card and increase its items.

Haidar Abadi, Chairman of the Economic Committee in the Parliament, said on the sidelines of the meeting "it was agreed to increase the ration card items, in addition to the provision of facilitated loans to the private sector."

The ration card items witnessed lately a severe shortage in its materials due to the lack of funds allocated to it.

Working by the ration card system in Iraq has begun in the early nineties after the exposure of Iraq to international sanctions following the invasion of Kuwait in August 1990.

$700 million to increase the ration card items | Iraq Updates

President Talabani Welcomes Bush’s Suggestion

Before heading to Baghdad, in a press statement at Sulaimaniyah International Airport, President Jalal Talabani said that Kurdistan Region is witnessing a prosperity and obvious development in all aspects.

President Talabani negated that he called for changes in the Iraqi Ministries, and said “I don’t think that any crucial change may occur in the recent Government. As well, National Reconciliation Process is going forward.”

He also said “Nuri al-Maliki, the recent Prime Minister is a suitable Person. We are trying to improve the Iraqi Government with the efforts of all sides, activate the ministries in a better form and fill the vacant one. The political process will witness a progress with the efforts of the political blocs.”

“We always welcome the suggestions of our dear friend President Bush”, President Talabani said in concerning President Bush’s suggestion to meet Recep Tayyip Erdogan, Turkish PM in order to solve the PKK issue.

At the end of the conference President Jalal Talabani expressed his optimism in implementing Article 140 of the Iraqi Constitution that deals with normalizing the situations in Kirkuk and other disputed areas during the next 6 months.

PUKmedia :: English - President Talabani Welcomes Bush’s Suggestion

KRG Delegation to visit Baghdad

A KRG delegation to visit Baghdad in the coming days to resume discussions on several disputed issues between both KRG the Iraqi federal government, official spokesman of KRG, Jamal Abdullah exclusively told PUK media.

“Issues related to article 140, the budget of Kurdistan Region including Peshmerga (Guard) Forces will be discussed with the Iraqi Federal Government.”, Abdullah added without identifying the time of the visit.

PUKmedia :: English - KRG Delegation to visit Baghdad