Two years and three months have elapsed since the Paris Court’s ruling concerning the independent sale of the Kurdistan Region’s oil. While this decision has effectively prevented the Kurdistan Regional Government from officially exporting its oil through Turkey’s Ceyhan port to international markets, it has not deterred the Regional Government from continuing oil commercialization efforts. Oil production has persisted, with the product being sold through unofficial channels and domestic markets at approximately half the international price. However, the revenues from these sales remain opaque and have become a source of ongoing dispute between Erbil and Baghdad.

Conversely, the court ruling compelled the Iraqi federal government to allocate the Region’s designated share from Iraq’s national budget and transfer the Kurdistan Region’s financial entitlements in accordance with existing legislation. Within this framework, according to documentation from Iraq’s Ministry of Finance and audit offices from both Iraq and the Region, over the past 27 months, various allocations totaling 19 trillion, 601 billion, 838 million, and 548 thousand dinars have been designated to fund the Regional Government. From these funds, the Regional Government has distributed salaries for 21 months.

This occurs alongside the fact that, according to official records, during the period from the second quarter of 2023 through the end of the first half of 2025, the Region’s non-oil revenue totaled 9 trillion, 941 billion, 614 million, 725 thousand, and 909 dinars. Of this amount, 598 billion, 515 million, 173 thousand, and 377 dinars—representing 6%—was remitted to the Iraqi government, while 9 trillion, 343 billion, 99 million, 552 thousand, and 532 dinars—representing 94%—was retained by the Region. This report provides detailed analysis of Baghdad’s funding mechanisms, the Region’s oil and non-oil revenues, and salary expenditure methodologies within the Kurdistan Region.

First: Iraqi Federal Government Funding to the Regional Government Following the Paris Court Decision

Based on official documentation from both Iraqi and Regional Finance Ministries, as well as reports from both financial audit offices, following the Paris Court decision on March 25, 2023, to suspend the independent sale of the Region’s oil, the Iraqi government has provided approximately 19 trillion and 602 billion dinars in funding to the Regional Government over the past 27 months. The Regional Government has allocated 100% of these funds toward salaries for 21 months, distributed as follows:
1. First Quarter of 2023:

• Two installments totaling 998 billion dinars as the Region’s statutory entitlement
• 1 trillion and 600 billion dinars provided as a loan to the Region

2. Second Half of 2023:

• Three installments of 700 billion dinars each, totaling 2 trillion and 100 billion dinars, authorized by Council of Ministers decision

This resulted in total transfers of 4 trillion and 698 billion dinars to the Kurdistan Region for the year 2023.

3. Year 2024:

• First half of 2024: 5 trillion, 73 billion, 637 million, and 990 thousand dinars in various installments as the Region’s entitlement
• Second half of 2024: 5 trillion, 712 billion, 714 million, and 913 thousand dinars in various installments as the Region’s entitlement

This resulted in total transfers of 10 trillion, 786 billion, 352 million, and 903 thousand dinars to the Kurdistan Region for the year 2024.

4. First Half of 2025:

First four months of 2025: 4 trillion, 117 billion, 485 million, and 644 thousand dinars in various installments as the Region’s entitlement

Final two months of the first half of 2025 (May and June): no allocations were made as the Region’s entitlement

Over the past 27 months, the Iraqi government has provided approximately 19 trillion and 602 billion dinars in funding to the Regional Government, averaging 933 billion, 420 million, and 883 thousand dinars monthly. The Regional Government has distributed salaries for 21 months from these funds. Salaries for six months—specifically October, November, and December of 2023, December of 2024, and May and June of 2025—remain unpaid.

Second: Regional Government’s Non-Oil Revenue Following the Paris Court Decision

According to reports from both Iraqi and Regional financial audit offices, during the period from March 25, 2023, to June 30, 2025, the Region’s non-oil revenue—derived from sources including taxes, fees, and customs duties—totaled approximately 9 trillion, 941 billion, and 615 million dinars. Of this total, 598 billion and 515 million dinars (representing 6%) was returned to the Iraqi government, while more than 9 trillion, 343 billion, and 99 million dinars (representing 94%) was retained by the Region. The breakdown is as follows:

1. Year 2023: Total non-oil revenue of 4 trillion, 656 billion, 554 million, and 483 thousand dinars, representing an average monthly amount of 388 billion, 46 million, 206 thousand, and 956 dinars. Accordingly, for the nine months following the cessation of the Region’s oil exports in 2023, the Region’s non-oil revenue was 3 trillion, 492 billion, 415 million, 862 thousand, and 601 dinars.

2. Year 2024: Total non-oil revenue of 4 trillion, 700 billion, 9 million, and 926 thousand dinars, representing an average monthly amount of 391 billion, 667 million, 493 thousand, and 893 dinars.

3. Year 2025: According to Iraqi Financial Audit Office reports, the Region’s average monthly non-oil revenue in 2025 has decreased to 291 billion, 531 million, 489 thousand, and 433 dinars. Consequently, the total non-oil revenue from the beginning of the year through June 30, 2025, was 1 trillion, 749 billion, 188 million, 936 thousand, and 595 dinars.

Third: Kurdistan Region’s Oil Revenue

Based on data from the Runbeen Institute for Transparency in Oil Processes, eight oil fields in the Kurdistan Region are currently operational. These fields collectively produce an average of over 300,000 barrels of oil daily and approximately 9 million barrels monthly.

The oil production from these fields is sold at prices ranging from $27 to $39 per barrel, with an average of $34 per barrel. This translates to total monthly revenue from oil sales exceeding $297 million and $507 thousand. Of this revenue, approximately 72% constitutes the Regional Government’s share, while 28% represents the operating companies’ share. Notably, none of this revenue is remitted to the Kurdistan Regional Government’s Ministry of Finance.