Federal budget payments to Kurdistan Regional Government rejected by Federal Supreme Court of Iraq

ERBIL, Iraq — The latest federal budget payments to the Kurdistan region were declared unconstitutional on Wednesday by the Federal Supreme Court of Iraq, landing yet another blow to political reconciliation between Baghdad and Erbil.

The ruling nullifies a number of decrees made by the government of former Prime Minister Mustafa al-Kadhimi approving payments to the Kurdistan Regional Government (KRG). Similar transfers were recently approved by Prime Minister Mohammed Shia’ al-Sudani. Although the ruling does not specifically address payments by al-Sudani’s government, it is unlikely they will take place given the precedent set by the decision.

The KRG criticized the decision and called on Baghdad not to abide by the court’s decisions, which it described as unconstitutional.

“Kurdistan Region respects the constitution, laws, and legitimate courts, but this court has not been formed and organized constitutionally, so it cannot rule as a federal court,” read a statement issued by the KRG. “Therefore, we reject its decisions and ask the federal government to not yield to the decision and commit to the pledges it had made to release the financial entitlements to Kurdistan Region.”

The statement added that the court’s decision undermines the positive atmosphere and rapprochement between the two governments. The KRG stated that it had sent delegations to Baghdad several times to reach a common understanding with the federal government to resolve issues within the framework of the constitution and expects Baghdad to act and preserve the progress made between the two sides.