Early Monday Morning Iraq News Highlights 5-16-22

Parliamentary Finance Clarifies The Fate Of The 2022 Budget Under The Caretaker Government

Economic news   May 16, 2022   user new  A member of the Parliamentary Finance Committee, Thamer Theban, confirmed, on Monday, that the caretaker government does not have the authority to send the draft federal budget law for the year 2022 to the House of Representatives.

Theban said that "the Financial Management Law allows the caretaker government to exchange 1/12 with the possibility of the Ministry of Finance giving the advances."

He stressed that "the possibility of the Ministry of Finance giving advances or grants to the ministry that requests, such as electricity, trade and others, and we have evidence that was repeated in previous years."

He pointed out that "the new government is exclusively concerned with sending the budget to Parliament and approving it," noting that "the caretaker government will proceed with the temporary budget / 12."

https://khabaar.press/archives/83412https://khabaar.press/archives/83412

Iraq Records A Decrease In Annual Inflation And An Economist Calls For Investing The Financial Surplus

Shafaq News/ (economics trading) website, which specializes in monitoring financial inflation, recorded, on Monday, a slight decrease in inflation in Iraq, while a financial expert stressed the need to direct surplus funds towards investment projects and reduce government debt.

And the website stated in an official statistic of the annual inflation of the Group of Twenty, seen by Shafak News Agency, that "the annual inflation in Iraq during the last statistic for the month of February reached 5.1%, down from 5.3%, while the growth rate of the gross domestic product reached 5.9% at the end of last year."

And he indicated that "the government debt to the gross domestic product amounted to 59.3% at the end of last year 2021."

In turn, the economic expert, Hilal Al-Tahhan, confirmed to Shafaq News, "The need to take advantage of the surplus funds resulting from the rise in oil prices by directing them towards investment projects to move the wheel of the Iraqi economy."

He pointed out that "the financial surplus is a great opportunity for Iraq that may not come like it in the future at all, especially with the world's countries heading towards clean energy."

Al-Tahhan called for "the need to reduce government debt, whether externally or internally, in order to improve Iraq's credit rating," adding that "foreign debts are paid according to pre-set schedules and times."

On the other hand, the website reported that "Turkey recorded the highest annual inflation in the group, reaching 69.97% in April of the current year, followed by Argentina 58%, Russia third 17.8%, Brazil came fourth with 12.13%, while the Netherlands ranked fifth with 9.6%, and came The United States of America is sixth, 8.3%.

And the site continued, "Spain came in seventh with 8.3%, India in eighth with 7.79%, Mexico in ninth by 7.68%, while the eurozone came in tenth with 7.5%."  He added, "Germany ranked 11th with 7.4%, the United Kingdom 12th with 7%, and Canada 13th with 6.7%."    LINK

Gold Is Falling With The Strength Of The Dollar

Shafaq News/ Gold prices fell in volatile trading on Monday, as the strong dollar damaged the demand for the dollar-priced metal and put it on its track to the lowest level in more than three months recorded in the previous session.

However, the decline in US 10-year Treasury yields limited the losses in zero-yield gold, helping to keep prices above $1800 an ounce.

Spot gold was down 0.1% at $1,808.61 an ounce as of 05:39 GMT. US gold futures were down 0.2% at $1,804.80.

Friday, prices fell 1% to $1,798.86 an ounce, before closing at $1,811.15.

Concerns about global growth helped the dollar kick off the week from a 20-year high against its peers, making rival safe-haven gold less attractive to buyers holding other currencies.

Although seen as an inflation hedge, gold is sensitive to rising short-term interest rates and US bond yields, which raise the opportunity cost of holding bullion.

Spot silver prices fell 0.2 percent to $21.03 an ounce, platinum increased 0.1 percent to $939.70, and palladium increased 0.6 percent to $1,955.59.    LINK

Low Oil Prices

Shafaq News/ Oil prices fell, on Monday, giving up their previous gains as investors took profits after the rise of the previous session, but global supply concerns loomed as the European Union prepared for a ban on imports from Russia.

Brent crude futures fell $1.67, or 1.49 percent, to $109.89 a barrel at 04:14 GMT, while US West Texas Intermediate crude futures fell $1.56, or 1.42 percent, to $108.92 a barrel.

The two benchmarks, which jumped about 4% last Friday, earlier rose by more than $1 a barrel, with West Texas Intermediate crude reaching its highest level since March 28 at $111.71.

On Friday, four diplomats and officials said the European Union was still aiming to agree a phased embargo on Russian oil this month despite concerns about supplies in eastern Europe, rejecting proposals to delay or water down the proposals.

Last week, Moscow - which describes its actions in Ukraine as a "special military operation" - imposed sanctions on several European energy companies, causing supply concerns. Meanwhile, US gasoline futures hit an all-time high again on Monday as falling inventories fueled supply fears.

Elsewhere, OPEC+ - the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia - has been reducing implementation of previously agreed plans to increase production due to lack of investment in oil fields in some OPEC members and, more recently, Russian production losses.  Reuters  LINK

A Senior Official: The Abundance Of Oil Is In A Safe Account, And There Are No Fears Of Wasting It

Posted On2022-05-16  By Sotaliraq   Baghdad/ Firas Adnan   A government official denied the existence of concerns about the surplus achieved from oil revenues, stressing that the proceeds are deposited in an account he described as “prudential” managed in accordance with international best practices, pointing out that the next budget will be expansionary and does not include contractionary materials.

While parliamentary circles expressed their fear that the amounts of surplus oil would be exposed to corruption, experts called for activating sovereign funds in order to invest those funds and find a new resource for the state's public treasury.

The financial advisor in the Council of Ministers, Mazhar Muhammad Salih, said, "The delay in approving the budget law for the current year does not mean that there is waste in revenues or the abundance of Iraqi oil revenues sold to global markets."

Saleh added, "The sums obtained from the rise in oil prices are in a hedge account and are managed according to the best international practices, and they are in hard currency and are safe, and there is no fear for these funds."

He pointed out, "The abundance of oil awaits the budget law, as part of it will go to spending, and the other to the sovereign fund at the end of the year if oil prices continue to rise."

And Saleh indicated, "Everyone is looking forward to issuing the budget law, as it represents a single document for public finance in order to know the vision until the end of this year."

He noted, "The budget will be expansionary, not contractionary, and will target the social spending side significantly, such as the ration card and support for the poor, peasants and farmers."

Saleh went on to say, “there is an aspiration to enter into strong development programs and strategic, income-generating and work-earning projects, and to make a qualitative leap in development projects.”

In addition, the representative of the State of Law coalition, Bahaa Al-Nouri, confirmed that “the end of the fiscal year will be at the end of the current year, and time does not allow for the submission of a draft budget law.”

Al-Nouri added, "The current government is to carry out daily tasks, and it does not have the right to present the draft budget law, and we have to wait for the new government."

He pointed out that "the current political differences do not portend a breakthrough, and the formation of the government and granting it confidence will not happen before next August, and this means that the new government will work on developing a draft budget for next year."

Al-Nouri stressed, “the need to deal in accordance with the constitutional and legal mechanisms with the surplus achieved from oil revenues and not to make it vulnerable to waste or corruption.”

For his part, the economic expert, Mowaffaq Al-Saydia, stated that "the current circumstances do not indicate the imminent adoption of the budget law for the current year."

Al-Saydia added, "The world is going through economic changes at the economic and political levels, which could negatively affect the country's path in terms of its food security."

He stated, "What is reassuring is the existence of a financial surplus, but it should be rationalized," calling for "the activation of the Sovereignty Fund and for it to have a role in the issue of the financial surplus in order to make there diversify the sources of funds when needed."

And he advised al-Saydia, "the necessity of proceeding with other legal paths that are consistent with the constitution in order to guarantee spending and address the new needs that have arisen, especially in terms of food security and raising the standard of living for the vulnerable classes."

And he added, "The Sovereign Fund is an investment fund. We have a surplus of funds, and with questions and doubts about the fate of these funds, it is supposed to activate the correct channels to deal with them."

Al-Saydia went on to say, "Resorting to these funds and investing the surplus funds will bring us profits in the future, making us dispense, even in a small way, from oil."

It is noteworthy that the Council of Ministers was seeking to present the draft budget law, but after switching to carrying out daily tasks due to the early elections, it was unable to do so.   LINK

Kurdistan Refuses To Hand Over Oil And Gas To Baghdad

Posted On2022-05-16  By Sotaliraq   Baghdad: Omar Abdul Latif  Since the issuance of the Federal Supreme Court’s decision in mid-February, which imposed on the Kurdistan region to hand over oil and gas production to the federal government, the regional government has refused to implement the decision and accused unnamed parties of “politicizing” the file and removing it from its legal and constitutional content.

On the other hand, members of the House of Representatives were accused The Iraqi government of the region disregards the decisions of the Federal Court and the export of oil at the expense of the Iraqi state’s share in the “OPEC” organization, as well as the control of oil fields and wells in Kirkuk.

A member of the Oil, Gas and Natural Resources Committee in the House of Representatives, Alaa Sabah Al-Haidari, said in an interview: "The committee and the House of Representatives will discuss what happened from the Kurdish forces' control of important oil fields in Kirkuk."

He added, "The region always seeks to annex Kirkuk to its administrative territories due to the presence of oil," noting that "the region was not satisfied with smuggling operations, which amounted to (one million barrels per day) deducted from Iraq's share in the Organization of Petroleum Exporting Countries (OPEC).

He added that "the region is evasive in order to disregard the decision of the Federal Court, despite the assurances of the Minister of Oil more than once on the necessity of its implementation," noting that "the committee completely rejects what is happening from the seizure of oil wells in Kirkuk, considering that Iraq's oil belongs to all The people, not for a particular component or province.”

Al-Haidari stressed, "The insistence of the majority of members of the House of Representatives to pass the oil and gas law during the current session after it was suspended for more than 12 years to curb abuses of oil policy."

The North Oil Company announced yesterday evening that Kurdish forces had taken control of a number of oil fields and wells in Kirkuk Governorate, while the regional government denied this.

On the other hand, the deputy head of the Energy and Natural Resources Committee in the Kurdistan Regional Parliament, Kalizar Rashid Sindi, described the statements regarding the Kurdish forces’ control of a number of fields in the Kirkuk governorate as “political par excellence,” indicating that negotiations are still ongoing between the regional and federal governments regarding the oil file. .

Sindi told "Al-Sabah": "The Federal Court's decision to prevent the region from exporting oil through its territory and limiting it to the Oil Marketing Company (SOMO) is political and relied on constitutional articles issued after the nationalization of oil in 1973 under the totalitarian regime at the time," noting that "the Oil Law And gas has not been legalized so far, despite the dependence of 93% of Iraq’s budget on oil.”

She pointed out that there is a conflict in the statements of the Minister of Oil, who spoke about the legality of 80% of the oil contracts for the region, "but then he talked about the application of the court's decision by the federal government regarding the region in the event of non-compliance," stressing that "the court has the right to cancel a paragraph or Two paragraphs of the aforementioned law and not all articles related to that.”

For his part, the oil expert, Mustafa Bazarkan, stated that “the dispute between the Kurdistan region and the center is due to the first approval of its own oil and gas law, and the disruption of the project that has been in the House of Representatives since 2004.”

He added in an interview with "Al-Sabah", that "Iraq has become between the hammer of Erbil and the anvil of Baghdad regarding oil issues," explaining that "the dispute between the region and the center will continue until the adoption of the oil and gas law, which will oblige the two parties to apply it and prosecute those who violate its articles."

The oil expert warned that “no governorate, including the Kurdistan region, has the right to control resources and natural wealth, but sometimes it is the one that gives itself the right to do so,” noting that “there is a confusion with the interpretation and understanding of the oil and gas law in granting the region 18% of the budget.” “.

Editing: Muhammad Al-Ansari  Disclaimer: All published articles represent the opinion of its authors only  LINK

Oil Expert: An International Resolution Will Support Baghdad In Controlling The Region's Oil Next July

Posted On2022-05-16  By Sotaliraq    The oil expert, Nabil Al-Marsoumi, revealed a decision by the International Commercial Court that will support Baghdad in controlling the oil of the Kurdistan region next July.

Al Marsoumi said; For the “Unannounced” program broadcast by Al-Furat satellite channel on Sunday evening, that: “The Kurdistan Regional Government’s objection to the interpretation of the Federal Court in the joint management of the oil file, and the region has signed contracts since 2002 for the exploitation of energy fields and some northern oil fields, including in Bay Hassan, which is from The dawn of the dispute with the center.”

He added, "The oil and gas law of the region legislated that oil exports must be delivered to the center, and the Federal Court's decision regarding the region's oil obligates the Federal Oil Ministry to take measures, including freezing the region's financial balances in international banks."

Al-Marsoumi referred to "the decision of the International Commercial Court, which will issue a ruling next July, and we believe it will be in the interest of the center."

And he continued, "The decision of the Federal Court to hold matters between Baghdad and Erbil, meaning if the ministry does not take a decision, things will remain unresolved, and I imagine the region technically unable to deliver Baghdad one barrel because of the partnership contracts subject to the management of foreign companies."

Al-Marsoumi went on to say, “The share of the Kurdistan region is less than half, and the share of foreign companies is up to 54%,” adding, “Israel imports from Kurdistan 62,000 barrels of oil per day, according to international reports, directly, and it is a fact.

He stressed that "there is no solution but to have a joint administration of the oil fields in the region, as well as the gas fields. It is shameful for Iraq to import gas and the region to export it."

Al-Marsoumi added, “The gas file is one of the most dangerous energy files, and we are afraid that the Kurdistan region will enter security, and if gas enters Turkey and compete with Iranian gas in the Turkish market, there will be security risks, and the region has to think well about this security and integration with Baghdad, because the issue concerns Iraqi national security before economic security.”

And the oil expert concluded, “Baghdad has very effective means of pressure on the region, including in the event of winning a lawsuit to prevent Turkey from using the oil tanker line to Kurdistan by the International Commercial Court in July, then there is no outlet for it to export.”  LINK 

Barzani's Party "Underestimated" The Post Of President Of The Republic Of Iraq: The Interests Of The Kurds Are Above Everything

05/16/2022   58   Earth News/ The Kurdistan Democratic Party confirmed today, Monday, that Kurdish interests are above the position of the President of the Republic, pointing to the imminent holding of meetings between Massoud Barzani and Bafel Talabani to end the tension between the two parties and its repercussions on the region.

The Secretary of the Political Bureau of the Kurdistan Democratic Party, Fadel Mirani, said, in a statement followed by Earth News, that "the leader of the Democratic Party, Massoud Barzani, and the head of the Patriotic Union of Kurdistan, Bafel Talabani, are about to hold a meeting soon," saying: "It is unlikely that Massoud Barzani will sit with Bafel Talabani as two presidents." to their parties, but perhaps they will sit as uncle and nephew.”

Mirani stressed that "the Democratic Party is still insisting until this moment on the position of President of the Republic, but everything is subject to change."

And he continued, "In my opinion, the Shiites need the president of the republic for only 10 minutes, when he takes the constitutional oath and selects the candidate for prime minister, after which neither the Shiites nor the Sunnis need the president of the republic, and the Kurds also do not need him, because he cannot do anything."

Mirani accused Bafel Talabani, that "the latter controls the natural gas, and threatens from time to time to shut it down," pointing out that "Erbil had nothing to do with the internal events of the National Union, which took place on the 8th of last July."   He stressed that “everyone is afraid of elections, because this time people will not participate in the polls.”    https://earthiq.news/archives/82612

The international coalition announces the value of aid provided to the Iraqi forces

Today, Sunday, the International Coalition announced the value of aid to Iraqis during the first quarter of this year.  In a statement followed by the Iraqi News Agency (INA), the coalition stated that "the Joint Task Force, Operation Inherent Resolve, provided the equivalent of $219 million in aid to partner forces in Iraq and partner forces in Syria in the first quarter of the 2022 fiscal year through the US Training Funding Program And preparing for the fight against Daesh," noting that "this came as part of the ongoing efforts to preserve Daesh's permanent defeat."

He added, "The US program to fund training and equipping to combat ISIS is a biennial US credit dedicated to filling gaps in partner force capabilities to ensure ISIS' lasting defeat."

He continued, "Since 2014, the American program to finance training and equipment to combat ISIS has provided more than $8.9 billion in aid, examples of equipment transfers include armored military vehicles, forklifts, ambulances, tow trucks, fuel and water tankers, as well as communications assets that range from devices to Radio to air traffic control systems and weapons.  https://www.ina.iq/155954--.html

UN Official: Iraq Is Among The Top Five Most Contaminated Countries With Mines

he Senior Director of the Iraq Program in the United Nations Department, Pierre Ludhammer, warned of the dangers threatening the lives of Iraqis due to the presence of large areas of land planted with mines.

The UN official stressed that the volume of mine contamination in Iraq is very large due to the repercussions of the multiple wars since the year one thousand nine hundred and eighty and the subsequent planting of innovative devices that are difficult to dismantle and remove in one thousand five hundred and twenty-two areas distributed among six provinces, indicating that these data place Iraq within The top five countries in the world are most polluted by mines.   LINK