Assessment of KRG-Rosneft Recent Deals

By Ahmed Mousa Jiyad.

Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Many of my Kurdish colleagues, members of the Finance and Oil Committees in the Iraqi federal Parliament, asked for my opinion on these deals. In response to that request and due to the importance of the deals and their potential impacts on the Iraqi national interest, I prepared this contribution.

Kurdistan-Iraq Regional Government (KRG) and the Russian oil company Rosneft signed a series of agreements on oil matters, on crude oil supplies with upfront payment in addition to an “open memorandum”; that was done during the period between February and June of this year.

As usual, the main contents and components of those agreements, the financial and economic conditions and their governing modalities have not been disclosed. While these agreements have attracted the attention and opposition of some Kurdish political blocs and members of the Iraqi parliament, the federal government and the federal Ministry of Oil both kept silent as if the matter does not concern them!

In spite of the lack of information and the confidentiality surrounding the details, what is available indicates, obviously, to their economic and financial importance for KRG; to the geopolitical considerations of the Russian government; to the profitability and the external strategic positioning considerations of Rosneft; and, finally, to the important implications and impacts of all that on Iraq and the federal government.

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Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad’s biography here.

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