Iraq premier discusses Turkey ties, geopolitics, trade routes: Anadolu

By Al Mayadeen English
Source: Anadolu Agency
1 Jun 2024 12:50

The Iraqi prime minister tells Anadolu that his country aims to become a strategic player in the gas market in the next five years.

Iraqi Prime Minister Mohammad Shia al-Sudani meets for the first regular session of the Council of Ministers in Baghdad, Iraq October 28, 2022. (Iraqi Prime Minister's Office)

The Development Road Project between Iraq and Turkey is key for the trade between the East and Europe, and for the economies of regional neighbors, Iraqi Prime Minister Mohammad Shia al-Sudani said in an exclusive interview with Anadolu.

“First, we must historically consider Iraq's role in trade between the East and the West. For centuries .. Mesopotamia has been a trade corridor, a plain favored by trade caravans for traversing its routes and engaging in trade with its cities and urban centers,” he said.

The Development Road is "fundamentally a restoration of this historical role," linking Iraq's al-Faw Port to the Turkish border," which is scheduled to receive its first ship as part of the project later this year, and connecting "the East and Europe via Iraqi and Turkish territories."

Al-Sudani pointed out the conflicts and tensions the region experiences, and emphasized the need to "focus efforts on projects that intertwine interests and benefit."

“The Development Road will provide an opportunity for the emergence of industrial cities along its sides, complementing the trade passing through it, and the initial flow of goods through the Development Road corridor will begin."

The prime minister explained that all economic indicators and feasibility studies suggest that this corridor is the most cost-effective and fastest among the available routes.

"We do not claim it is a substitute, but regional and international trade genuinely needs the Development Road," he said, adding that the project "connects and enhances the overlapping interests and the factors for economic sustainability.”

Resolving water disputes

Discussing Iraq-Turkery water cooperation, he stressed that "the Tigris and Euphrates rivers are the lifelines of Iraq, a land known as Mesopotamia before any other name, and the water dossier is one of the important strategic issues" between the two neighbors.

“In recent years, we have experienced seasons of water scarcity that were harsh, and in some cases, we were unable to secure drinking water for several cities and southern provinces," he noted.

"The Turkish side has observations about the uses of water in Iraq. On the ground, we have made significant progress in incorporating modern technology for irrigation uses, positively reflecting on water conservation,” the prime minister said, adding that “Turkish experience is pioneering in water resource management.”

Iraq had earlier proposed a 10-year water management initiative, al-Sudani confirmed, noting that the move is “aimed at improving water management and implementing developmental projects and exchanging expertise in the field of modernizing irrigation systems and technologies, including dams.”

“We have made it clear to everyone that it is in no one's interest, neither Turkey's nor the region's, for the problem regarding Iraq's share of the waters of the Tigris and Euphrates rivers to exacerbate. Ultimately, we are linked by one lifeline, which is the basis of Iraq's civilizational existence over thousands of years,” he said.

Positioning in the gas sector

Addressing his country's energy ambitions, he mentioned that “harnessing gas is a strategic choice for Iraq” and that their national resources “must be optimally employed to serve our people and development plans.” But he warned that “the ongoing practice of gas flaring must stop, first, because of the waste of this resource that could be utilized, and secondly because of the environmental impacts.”

“We have announced a special licensing round for harnessing gas fields, and we plan for Iraq to be self-sufficient in domestic gas production within 3 years," the premier revealed, stating that Iraq is progressing to become a significant element in the gas market within 5 years.

"We will achieve self-sufficiency in this resource for electricity production,” he said, adding that “having a technological base for gas harnessing is simultaneously a foundation for a broader range of petrochemical industries, which is our goal.”

Al-Sudani pointed out that Iraq is open to “any reputable and specialized company" wishing to participate in the gas sector, "just as we welcome regional companies because they will broaden the base of cooperation in other areas.”

“It is important to understand that harnessing gas means generating additional resources for development in Iraq, which can be used in various promising economic fields, and these areas will be open for participation by Turkish companies and other friendly nations,” he said.

Bilateral trade

On economic ties, Al-Sudani expressed Iraq's desire to improve bilateral trade with Turkey, underlining that this should be achieved through the "vertical .. and horizontal expansion" of business volume, which stood at $19.9 billion in 2023, down from $24.2 billion in 2023.

"In short, this is the role of the Development Road Project and its associated initiatives,” he said.

“The goal is to expand trade horizontally so that interests are intertwined in the region. Experience and recent history have shown that a country's progress in isolation from its neighbors is uncertain and fraught with potential conflicts,” he added.

“Therefore, we focus on increasing the capacity for exchange and actual partnership as a guarantee of stability and long-term deep relationships. In our relationship with the Turkish brothers, we have also focused on one of the most promising sectors for investment and cooperation—the agricultural sector—and soon, we will see practical steps in this area, along with the participation of Turkish companies."

Resumption of oil flow

Touching upon Iraqi oil transfer to Turkey, which has been suspended for over a year over Ankara's violation of mutual agreements as it unilaterally purchased oil from Kurdistan, he said that Baghdad had "initiated acceptable settlements and legal solutions after a thorough legal study," but "the matter remains bound by legal commitments."

“The stopping of pumping Iraqi oil extracted from the fields of the Kurdistan Region of Iraq (KRG) is undoubtedly a loss for Iraq, and at least it is a missed benefit that could support development plans in the provinces of the Kurdistan Region of Iraq and strengthen the overall Iraqi economy,” he said.

“The Federal Budget Law requires that the cost of producing one barrel of oil in all fields be within the national average production cost, which is about $8 per barrel, according to the Federal Ministry of Oil,” he explained, further stating that KRG calculates the production cost at about $26 per barrel “within the contracts signed with the operating oil companies.”

“We have proposed either to amend the budget law or to amend the agreements and contracts with these companies. From this perspective, the companies stopped production, not because of a ban from the federal government, but waiting for a solution,” he said.

“The companies refused to amend the contracts, while the regional government agreed. For these reasons, more work is needed to find a legal solution that prioritizes ensuring the rights of Iraq and its people to their wealth."

He concluded on the issue by saying: “As for transporting Basra's oil through Turkish ports, the matter is under study, and determining the economic feasibility is paramount before anything else.”

Fight against PKK

Elsewhere in the interview, when asked if Baghdad is considering labeling the Kurdish PKK militia a "terrorist group" and placing it on the "banned" list of organizations, the Iraqi prime minister explained that they have been present in the country since the 1980s, and the circumstances for this is "well known .. as are the reasons for the tension and conflict.”

“It is an issue that has not seen enough efforts to resolve it fundamentally,” he said, saying that Iraq “adheres to consistent principles” when dealing with PKK or “any other entity.”

“The presence of this party's members was as individual refugees. According to our constitution, which clearly prohibits any armed military activity targeting neighboring countries from Iraqi territory, this poses a constitutional issue."

“Therefore, our Ministerial Council for National Security decided to consider the organizations of this party as legally banned organizations. We also took regulatory measures regarding Makhmur Refugee Camp, and the process of registering and updating the names of the residents in the camp,” al-Sudani said.

“The same will apply to any organization or party that targets any of the neighboring countries, not just Turkey. It is important to recognize that allowing old problems to escalate benefits no one,” he underlined.

“Similarly, permitting the movement of armed elements that threaten regional stability is detrimental to all. Stability is essential for the region to overcome its economic, political, and other deep-rooted challenges.”