Expert warns of consequences of oil smuggling after budget amendments implemented
Expert warns of consequences of oil smuggling after budget amendments implemented
2-19-2025
Al-Maalouma / Special..
Economic expert Mustafa Hantoush warned, on Wednesday, of the serious consequences of the continued smuggling of oil from the Kurdistan Region in light of the implementation of the new amendments to the budget law.
Hantoush said in a statement to / Al-Maalouma / agency, that “the recent amendments to the budget, which included raising the price of a barrel of oil to more than $16 in the region, may contribute to restructuring oil export operations, especially with Iraq’s share increasing from 3 million and 300 thousand barrels to 3 million and 500 thousand barrels.”
He explained that “the continued smuggling of oil from the region after allowing them to export will result in significant financial losses, as increasing the price of a barrel to $16 or $20 will not be effective if smuggling operations continue.”
He stressed that “Iraq’s share in OPEC will be negatively affected if smuggling is not completely stopped, which will result in losing the difference between the actual cost and the expected revenues.”
He warned that “continued smuggling contradicts the amendments made to the budget law, which may expose the region to financial and legal consequences,” stressing “the need to strengthen control mechanisms over export operations and completely eliminate smuggling to ensure optimal utilization of oil wealth.”
It is noteworthy that the Council of Representatives had previously voted to amend Paragraph 12 of the Federal Budget Law related to the Kurdistan Region’s oil.
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