Sulaimaniyah, Iraq: The smuggling of tens of thousands of gallons a day of crude oil and refined fuels from northern Iraq to Iran, in violation of new US sanctions, is stoking tensions between Iraq's central government and its Kurdish provincial counterparts.
The reports about the oil smuggling surfaced just over a week after the US imposed new sanctions barring the export of refined fuels to Iran. They also arise at a time when Kurdish help may be needed to form the next government as politicians in Baghdad have been deadlocked since the March 7 election.
Embarrassing issue
Iraqi officials quickly vowed to do something about the practice. The smuggling is an embarrassment for Baghdad and the Kurds — both US allies — not only because of the sanctions but also because of Iraqis' perception that politicians are profiting on the trade while the public suffers from fuel shortages.
Iraqi Oil Minister Hussain Al Shahristani said Tuesday the cabinet had decided to summon representatives of the Kurdish regional government to discuss the smuggling issue.
"This matter is unacceptable and strange," Al Shahristani told reporters after a cabinet meeting. It is "illogical to export refined products to neighbouring countries while Iraq imports refined products such as gasoline."
Days earlier, government spokesman Ali Al Dabbagh said an urgent meeting would be held with Kurdish officials. The Kurds, however, appeared resistant. One Kurdish government official said he doubted any meeting would take place.
