The continuing problem of the PKK presence in Iraq has not seen enough effort for a resolution, Prime Minister Mohammed S. Al Sudani said.

Al Sudani told Daily Sabah that the circumstances of the PKK's presence are 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. However, we adhere to consistent principles when dealing with the PKK or any other entity," Al Sudani pointed out.

The prime minister said that the PKK has had roots in Iraq since the 1980s and entered the country 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," he underlined, reiterating that Iraq's Ministerial Council for National Security decided recently to legally ban the organizations associated with the PKK.

"We also took regulatory measures regarding Makhmour Refugee Camp and the process of registering and updating the names of the residents in the camp. The same will apply to any organization or party that targets any of the neighboring countries, not just Türkiye," Al Sudani said.

He highlighted that allowing old problems to escalate benefits no one. "Stability is essential for the region to overcome its economic, political and other deep-rooted challenges."

President Recep Tayyip Erdoğan in April visited Baghdad and Irbil, meeting with several high-level officials. Ankara and Baghdad signed 26 agreements during the visit, among which were memorandums of understanding on security cooperation, military training as well as the defense industry.

Türkiye aims to ramp up coordination with the Iraqi central government on the fight against the PKK to eliminate both threats on Türkiye from Iraqi soil as well as increase stability and security in Iraq which is also expected to boost the Iraqi Development Road Project, a vast $17 billion infrastructure and transportation project set to link the Persian Gulf to Europe via Iraq and Türkiye with railways, roadways and ports.

‘No substitute’

"This region experiences fluctuations in conflicts and tensions. This necessitates focusing efforts on projects that intertwine interests and benefits. The Development Road will provide an opportunity for the emergence of industrial cities along its sides, complementing the trade passing through it," Al Sudani said on the project.

Saying that Iraq will inaugurate the first berths of the Al-Faw Port, Sudani mentioned that the initial flow of goods through the Development Road corridor will begin.

"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. This project connects and enhances the overlapping interests and the factors for economic sustainability," he added, answering concerns of regional countries on whether the project could negatively affect their own trade routes.

The prime minister said that the Development Road is fundamentally a restoration of Iraq’s historical role as a transit region, linking Al-Faw Port to the Turkish border, which according to current market equations and international trade movements, connects the East and Europe via Iraqi and Turkish territories.

Al Sudani also spoke on trade relations with Türkiye, adding: "Increasing the bilateral trade volume with Türkiye is possible through vertical expansion. However, we are also aiming for horizontal expansion. In short, this is the role of the Development Road Project and its associated initiatives."

"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. Therefore, we focus on increasing the capacity for exchange and actual partnership as a guarantee of stability and long-term deep relationships," he said.

Al Sudani added that in ties with Türkiye, Iraq has also focused on one of the most promising sectors for investment and cooperation, the agricultural sector. "Soon, we will see practical steps in this area, along with the participation of Turkish companies."

Water resources

Meanwhile, Türkiye and Iraq also signed a memorandum of understanding on water resource cooperation in April. While the main priority for Ankara in its ties with Iraq is largely security, water makes up the main agenda for Baghdad.

"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. The Turkish side has experience with water use in Iraq," the prime minister said.

"On the ground, we have made significant progress in incorporating modern technology for irrigation uses, positively reflecting on water conservation. The Turkish experience is pioneering in water resource management. For these reasons, we proposed a water management initiative, a framework agreement that will continue for 10 years, aimed at improving water management and implementing developmental projects and exchanging expertise in the field of modernizing irrigation systems and technologies, including dams," Al Sudani underlined.

Saying that both countries are linked by two lifelines, namely the Tigris and Euphrates, Sudani said that it is in no one's interest for the problem regarding Iraq's share of the rivers to exacerbate.

The Tigris and Euphrates rivers originate in Türkiye but make up a large percentage of Iraq’s freshwater sources. Türkiye will help Iraq in overcoming problems that lead to water scarcity and are not rooted in Ankara’s management of the problem. Outdated irrigation methods, storage and the lack of modern methods for water sustainability in a changing climate are some of the main reasons that cause problems for Iraq and Türkiye. Consultancy and projects will help Iraq in dealing with waste and mismanagement.

‘Loss for Iraq’

On the other side, oil constitutes a vital trade item between the two countries.

Supply via the Iraq-Türkiye oil pipeline (ITP), which once handled about 0.5% of global oil supply but has since been halted, has been stuck in legal and financial limbo since March 2023, and talks to resume the exports have stalled. The pipeline went offline following an arbitration ruling by the International Chamber of Commerce.

The International Chamber of Commerce ordered Ankara to pay Baghdad damages of $1.5 billion (TL 48.31 billion) over what it said were unauthorized exports by the Kurdistan Regional Government (KRG) between 2014 and 2018.

"The stopping of pumping Iraqi oil extracted from the fields of the Kurdistan region of Iraq 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," Al Sudani emphasized.

"We have initiated acceptable settlements and legal solutions after a thorough legal study. However, the matter remains bound by legal commitments," he added, indicating that 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.

"However, the Ministry of Natural Resources in the Kurdistan Regional Government, within the contracts signed with the operating oil companies there, calculates the production cost at about $26 per barrel. 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 elaborated that 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. As for transporting Basra's oil through Turkish ports, the matter is under study and determining the economic feasibility is paramount before anything else," Al Sudani said.