Russian Energy Cooperation With Iraqi Kurdistan Spurs Region's Development - Kurdish Party

Russian energy giants Rosneft and Gazprom, which operate in oil-rich Iraqi Kurdistan, play a major role in developing the autonomous region's economy and other sectors, such as culture, sports and medicine, the representative of the Kurdistan Democratic Party in Russia, Hoshawi Babakr, told Sputnik

MOSCOW (UrduPoint News / Sputnik - 21st March, 2019) Russian energy giants Rosneft and Gazprom, which operate in oil-rich Iraqi Kurdistan, play a major role in developing the autonomous region's economy and other sectors, such as culture, sports and medicine, the representative of the Kurdistan Democratic Party in Russia, Hoshawi Babakr, told Sputnik.

"The relations between Russia and Kurdistan are developing better and more actively. Good conditions were created for them to flourish. I see their relationship developing in economics, culture, sports as well. I hope direct flights will launch too. Major energy companies like Rosneft, Gazprom are like driving forces that help develop other sectors � finance, business, social relations, medicine," Babakr said.

He also expressed hope that Kurdistan and Rosneft would implement agreements reached last May on potential gas cooperation.

"Kurdistan wanted to strike with Rosneft a deal on oil production in Kirkuk. I hope that Russia comes back to it and completes previous agreements. We have to work on it. Russia has generally good relations with Iraq, with Kurdistan as well � the country has invested over $1 billion in production, sales, we are now even talking about gas production.

Russia has bought rights on a gas pipeline from Kurdistan to Turkey. How it will further link to the grid is [unclear], but Kurds are interested in this, of course, due to proceeds," Babakr said.

Rosneft and Iraqi Kurdistan have signed a number of agreements on cooperation in the oil and gas sector. In 2017, the Russian company acquired shares in five oil fields in the region that contain an estimated 670 million barrels, and agreed on an oil trading contract for 2017-2019. That same year, Erbil received a $1.3 billion advance payment as part of the oil contract.

Meanwhile, the oil cooperation between Russian companies and Iraqi Kurdistan has been somewhat complicated given the tense relations between the independence-seeking autonomous region and Baghdad. Following the 2017 independence referendum in Iraqi Kurdistan, Baghdad imposed sanctions on the regional government, temporarily restricting banking operations and banning international flights to and from the region, among other measures.

Baghdad also launched a military operation in the oil-rich province of Kirkuk, capturing its capital and forcing oil exports from Kirkuk to stall until late last year.