By John Lee.

Iraq has reportedly signed a deal with the Gulf Cooperation Council Interconnection Authority (GCCIA) to import electricity at a rate of 500 megawatts of electricity from Sunni Arab gulf countries before next summer, Iraqi Ministry of Electricity spokesperson a told state newspaper on Thurday.

According to Rudaw, the GCCIA will fund the cost of building the two 400-KV lines, which will run for 300 kilometers across Iraq and Kuwait.

(Source: Rudaw)

By John Lee.

Court filings in the United States have reportedly shed new light on corruption in Iraq.

Louis Auge, of EU Reporter, writes that two members of Iraq’s Communications and Media Commission (CMC) recieved houses in London in return for their role in the expropriation of over $800 million from French telecom firm Orange and Kuwaiti logistics company Agility.

The companies had initially invested the money in Kurdistan-based mobile phone operator Korek, via a joint venture.

More here.

(Source: EU Reporter)

From Middle East Monitor, under a Creative Commons licence. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

Iraq and‌ ‌Kuwait‌ ‌are at‌ ‌loggerheads‌ ‌over‌ ‌conflicting‌ maritime border ‌claims‌

Efforts‌ ‌to‌ ‌resolve‌ ‌a‌ ‌slow-burning‌ ‌maritime‌ ‌boundary‌ ‌dispute‌ ‌between‌ ‌Iraq‌ ‌and‌ ‌Kuwait‌ ‌hit‌ ‌a‌ ‌dead end‌ ‌last‌ ‌month.‌ Renewed political‌ ‌differences‌ ‌over‌ ‌Khor‌ ‌Abdullah,‌ ‌a‌ ‌narrow‌ ‌corridor‌ ‌with shared sovereignty‌,‌ are bubbling beneath the surface of what appear to be cordial relations between the Gulf neighbours. The issue is casting a long shadow over the future of bilateral relations.

Kuwait‌ ‌is‌ ‌accused‌ ‌by Iraq of‌ ‌altering‌ ‌the‌ ‌surface‌ area of the ‌waterway by installing a naval platform as part of the construction of Mubarak Al-Kabir Port on the opposite bank to Iraq’s Umm Qasr Port. Referred to as Fisht El-Eij, the artificial piece of land, insists Kuwait, lies within its own territorial waters. Iraq disagrees, and says that, since 2012, such plans undermine the existing maritime borders. Once completed, the new port will make it difficult for Iraq to challenge Kuwait’s claim to territories that Baghdad‌ ‌has‌ historically ‌‌‌administered.‌ ‌

On‌ 5 ‌September‌ ‌Baghdad‌ appealed‌ formally ‌to‌ ‌the‌ UN ‌Security‌ ‌Council‌ ‌to intervene in the conflict, protesting against ‌Kuwaiti‌ ‌attempts‌ ‌to‌ ‌deprive‌ ‌Iraq‌ ‌of‌ ‌joint‌ ‌ownership‌ and the freedom to navigate the narrow waterway.

The‌ ‌story‌ ‌began ‌in‌ ‌1993‌ after ‌the‌ announcement of Security Council‌ Resolution‌ ‌833.‌ ‌In‌ ‌a move described by analysts as unprecedented, ‌the‌ ‌UN’s‌ ‌mandate‌ ‌extended‌ ‌to‌ ‌the‌ ‌demarcation‌ ‌of‌ ‌the‌ ‌maritime‌ ‌boundary.‌ ‌During the same year, the US ordered a missile strike on Iraq’s Military Intelligence Headquarters; 23 tomahawk cruise missiles hit the site. As would be expected, Iraq’s decision to turn its back on US-led diplomatic efforts, including Resolution 833, would come back to bite successive Iraqi governments.

Between‌ ‌1993‌ ‌and‌ ‌2003, the terms of that‌ ‌resolution —‌ ‌which reaffirmed previous resolutions and the establishment of the UN Iraq-Kuwait Boundary Demarcation Commission, a body that Iraq has consistently disowned — ‌were‌ ‌not‌ ‌applied‌ by‌ ‌Kuwait’s‌ ‌parliament.‌ ‌Kuwait’s‌ ‌position‌ ‌and opinions on‌ ‌the‌ matter‌ are well‌ ‌documented,‌ ‌but‌ as far as Iraq’s position is concerned, this has been eroded by political‌ ‌disarray‌ ‌and ‌the pact of silence maintained by Kuwait-leaning‌ ‌Iraqi‌ politicians cheerleading for Kuwait’s Emir at the expense of Iraq’s national sovereignty.

When asked about the official Iraqi position, former Transport Minister Amir ‌Abduljabbar refused to “mention names” but argued that many are motivated by financial and business interests and others swapped their loyalty for permanent residence in the country. “Important delegations that visit Kuwait frequently do not consist of maritime experts but, instead, they send these lackeys,” he claimed in an interview with local Al-Rasheed satellite TV station.

Political‌ ‌anxieties‌ ‌over‌ ‌Iraq’s‌ ‌fading‌ ‌sovereignty‌ ‌of‌ ‌the‌ ‌shared‌ ‌maritime‌ ‌zone‌ ‌are ‌deepening in the face of Baghdad’s inaction.‌ ‌A‌ ‌2013‌ ‌maritime‌ ‌deal‌ ‌initiated by former‌ ‌premier‌ ‌Nouri‌ ‌Al-‌Maliki‌ ‌received‌ ‌nationwide‌ ‌condemnation‌ ‌as‌ ‌experts‌ ‌and‌ ‌activists‌ ‌claimed‌ that he ‌had‌ ‌ceded‌ ‌the‌ shared ‌zone‌ ‌to‌ ‌Kuwait‌ ‘s ruling class ‌in‌ ‌exchange‌ for ‌billions of dollars.‌ ‌The‌ ‌‌exposé‌ ‌coincided‌ ‌with‌ ‌Kuwait’s‌ ‌attempt‌ ‌to‌ ‌activate‌ ‌the‌ ‌deal‌ ‌in‌ ‌January‌ ‌2017‌, almost 3 years after it was signed in secret and ‌in‌ the ‌absence‌ ‌of‌ ‌a parliamentary‌ ‌quorum.‌

The then-Prime‌ ‌Minister,‌ ‌Haider‌ ‌Al-Abadi‌ ‌refused‌ ‌to‌ ‌validate‌ ‌accusations‌ ‌of‌ ‌ “betrayal” ‌ ‌and‌ ‌ “relinquished‌ ‌sovereignty” ‌‌levelled‌ ‌at‌ ‌Maliki‌ ‌and‌ ‌offered‌ ‌no‌ ‌further‌ ‌clarity‌ ‌on‌ ‌a‌ ‌deal‌ ‌critiqued‌ ‌largely‌ ‌for‌ ‌its‌ ‌opaqueness.‌ ‌Iraq’s‌ ‌shaky‌ ‌position‌ ‌under‌ ‌Abadi‌ ‌has‌ ‌yet‌ ‌to‌ ‌stabilise‌ ‌under‌ current ‌Prime‌ ‌Minister‌ ‌Adel‌ ‌Abdul‌ ‌Mahdi.‌ ‌

Allegations‌ ‌of‌ ‌Kuwaiti‌ ‌meddling‌ ‌in‌ ‌the‌ ‌strategic‌ ‌shipping‌ ‌corridor‌ ‌entered‌ ‌a‌ ‌new‌ ‌phase‌ ‌last‌ ‌September, after Iraq lodged an official complaint. This was followed by calls from Iraqi parliamentarians to adopt the recommendations brought forward by a special parliamentary committee. One ‌MP‌ aligned to the White Iraqiya bloc, ‌Alia‌ ‌Nassif‌, has ‌urged Iraq’s‌ ‌three‌ ‌presidencies‌ ‌to‌ ‌activate the recommendations that the report advances.‌ ‌Its findings depict a dangerously lopsided ‌agreement‌ ‌that‌ ‌will embolden ‌Kuwait‌ ‌to‌ ‌police‌ ‌the‌ ‌joint‌ ‌maritime‌ ‌zone‌ ‌and‌ ‌prevent‌ ‌foreign‌ ‌vessels‌ ‌from‌ ‌sailing‌ ‌in‌ ‌Iraq’s‌ ‌territorial‌ ‌waters‌ ‌hoisting‌ ‌Iraq’s‌ ‌flag.‌ ‌Kuwait’s‌ ‌endless‌ ‌pursuit‌ of ‌re-demarcating‌ ‌the‌ ‌border‌ ‌would‌ also ‌deal‌ ‌a‌ ‌paralysing‌ ‌blow‌ ‌to‌ ‌fishing crews on‌ ‌either‌ ‌side‌ ‌of‌ ‌the‌ ‌waterway‌ ‌by‌ ‌prohibiting‌ ‌them‌ ‌from‌ ‌fishing. ‌As‌ ‌underscored in the report,‌ ‌Iraq’s‌ ‌fishing‌ ‌communities‌ ‌will‌ ‌have‌ ‌nowhere‌ ‌to‌ ‌go‌ ‌in‌ ‌the‌ ‌likelihood‌ ‌of‌ ‌such‌ ‌an‌ ‌event.‌ ‌In fact, the last few years reveals an upturn of violent incidents in which Iraqi fishermen have been shot at by Kuwait coastguards.

In response to Iraq, Kuwait’s‌ ‌permanent‌ ‌UN representative,‌ Mansour‌ ‌Otaibi,‌ ‌issued‌ ‌a‌ ‌letter‌ ‌to‌ ‌the‌ ‌UN Security Council‌ in which allegations‌ ‌of‌ ‌a‌ ‌“land‌ ‌dispute”‌ ‌were‌ ‌shrugged‌ ‌aside.‌ The dispute was coloured as topographical and climatic and one in which it was easy to reach a solution. ‌“Kuwait‌ ‌called‌ ‌on‌ ‌Iraq‌ ‌more‌ ‌than‌ ‌once‌ ‌to‌ ‌start‌ ‌negotiations‌ ‌to‌ ‌settle‌ ‌the‌ ‌issue,”‌ ‌‌added Otaibi‌.‌ ‌In‌ ‌a‌ ‌tactical‌ ‌swerve,‌ ‌Kuwait‌ ‌is‌ turning up ‌the‌ ‌heat‌ ‌on‌ ‌Iraq‌ ‌by‌ ‌skirting‌ ‌around‌ ‌its ‌claims‌ ‌and‌ ‌placing‌ ‌the‌ ‌onus‌ ‌on‌ ‌Baghdad’s central government.

Kuwait ignored the very specific focus of Iraq’s official protest; ‌the‌ ‌construction‌ ‌of‌ ‌a‌ ‌naval‌ ‌platform‌ ‌as‌ ‌part‌ ‌of‌ ‌Mubarak‌ ‌Al-Kabir‌ ‌Port‌ ‌on‌ ‌the‌ ‌west‌ ‌bank‌ ‌of‌ ‌the‌ ‌canal. “Iraq was never consulted about the construction of this,” claims Abduljabbar. “I have warned about the construction of Fisht El-Eij platform since 2012, when I suspected that they would bury rocks along particularly shallow parts of the canal.”

Abduljabbar injects into the debate essential contextual details, and raised two red flags: one rests on the site where Kuwait is building Mubarak Al-Kabir Port. Iraqi officials warned then, and now, that upon completion it will block Iraq’s access to the waterway and suffocate Al-Faw Port which Iraq started building before Kuwait even though of building Mubarak Al-Kabir. Kuwait’s success, Iraq has argued, rests on its ability to tamper with a canal that Abduljabbar insists had millions spent on it by Iraq.

“The platform which Iraq denounced in its official letter in fact shares the same name as the curve in the estuary that ends at Umm Qasr,” a local marine pilot who asked to remain anonymous told MEMO.

Kuwait, though, insists that Iraq was informed and that “the installation of the platform is a sovereign right”; official press statements from Baghdad and the remarks of other notable figures suggest that Iraq disagrees. As Abduljabbar has argued on countless occasions, the consistency of Iraq’s claims became obsolete following the removal of Saddam Hussein’s government in 2003. “I have argued in the past and till now that the construction of Mubarak Al-Kabir Port does in reality violate the agreements under which Kuwait justifies its position: resolution 833 and the UN Convention on the Law of the Sea,” he explained live on Al-Rasheed TV. “Every time the regime changes in Iraq — in 1963, 1968, 1979, 2003 — Kuwait finds a way to secure its share of the spoils. I’ve appealed to various Iraqi politicians, who have wantonly ignored my requests; some even refused to accept my letter.”

Diplomatic storms over the same issue have subsided only to re-emerge. Iraq has operated under the logic that the delimitation of the border zone as Resolution 833 ordered is an ‌inter-state‌ ‌affair in accordance with international law.‌ Similarly, ‌Kuwait has justified its position with reference to the UN treaty on the law of the sea of 1982. As of yet, there is no common ground upon which the two sides agree.

Khor Abdullah is, in fact, Iraq’s only gateway to the Arabian Gulf into which the country has poured both money and labour for the port’s modernisation and infrastructure development. During Iran’s occupation of Iraq’s Faw Peninsula during the 1980-1988 war, Abduljabbar points out, “Iraq was the one that defended the peninsula and later de-mined the shared corridor. Given that we have joint responsibilities, where was Kuwait?”

At the forefront of Iraq’s position is a crucial detail too often skipped over; the fact that Iraqi officials never endorsed UN Resolution 833. Abduljabbar notes that, after 1993, “The UN was left hearing from one side only since Iraq under Saddam Hussein didn’t participate in these discussions. This has eroded any leverage Iraq once had. More dangerously, the Gulf Cooperation Council backs Kuwait’s position although Iraq’s calls for the boundary’s coordinates to be established with international oversight have fallen by the wayside.”

Publicly, Kuwait’s display is nothing short of comradeship with Iraq, but in private it appears to be pursuing a fait accompli strategy which is totally unsympathetic towards Iraq’s rights and position.

The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.

(Source: Middle East Monitor)

Iraq has signed a landmark deal with the Gulf Cooperation Council (GCC) for a power line to import 500 megawatts of electricity by 2020, local reports said on Sunday.

According to the Iraqi Electricity Ministry, the 300-kilometre line will run from Kuwait to Iraq’s southern port of Faw and be financed by the GCC.

Electricity Minister Lo’ai [Luay] Al-Khatteeb (pictured) signed the agreement with the head of the GCC Interconnection Authority, Ahmad Ibrahim, on the sidelines of an energy conference held in Baghdad.

This is the first deal of its kind with the GCC,” explained Al-Khatteeb. Iraq is also in separate talks with neighbours Saudi Arabia, Jordan and Turkey to import electricity.

This first step will pave the way to discuss further and higher capacity projects,” the minister added, “not only to supply Baghdad and northern Iraq but also as a pathway to other countries.

(Source: Middle East Monitor)

Iraq has signed a landmark deal with the Gulf Cooperation Council (GCC) for a power line to import 500 megawatts of electricity by 2020, local reports said on Sunday.

According to the Iraqi Electricity Ministry, the 300-kilometre line will run from Kuwait to Iraq’s southern port of Faw and be financed by the GCC.

Electricity Minister Lo’ai [Luay] Al-Khatteeb (pictured) signed the agreement with the head of the GCC Interconnection Authority, Ahmad Ibrahim, on the sidelines of an energy conference held in Baghdad.

This is the first deal of its kind with the GCC,” explained Al-Khatteeb. Iraq is also in separate talks with neighbours Saudi Arabia, Jordan and Turkey to import electricity.

This first step will pave the way to discuss further and higher capacity projects,” the minister added, “not only to supply Baghdad and northern Iraq but also as a pathway to other countries.

(Source: Middle East Monitor)

By John Lee.

The economic agreements signed between Kuwait and Iraq have recently raised concerns among Iraqi experts, who warned against “political courtesy” at the expense of the country’s interests in relation to the proposed free trade zone on the border between the Iraqi city of Basra and Kuwait.

A member of the Council of Basra, Mohamed Al-Fatlawi, expressed reservations about the idea of ​​establishing a free trade zone between Iraq and Kuwait, insisting his opposition stemmed “from the simple reason that it will negatively affect the Iraqi Port of Al-Faw, which is being constructed on the waters of the Arabian Gulf”.

He explained that “the goods imported by Iraq from Kuwait are two hundred times more than those exported by Iraq to Kuwait”.

The presence of a free economic zone means that the port is no longer useful,” Al-Fatlawi lamented, adding that: “The ships come to Mubarak Al-Kabeer Port in Kuwait and are unloaded there, but arrive at the free zone without paying any fees. So, it will be cheaper than coming through Al-Faw Port where tariffs are imposed.

Jamal Al-Mohammadawi, a member of the Oil and Energy Committee, also said that the free zone could have a negative impact on the Port of Al-Faw. “We will recommend that the government take this issue into account, so that there won’t be any agreements at the expense of trade and import from Iraqi ports,” the New Arab reported Al-Mohammadawi as saying yesterday.”

The committee member added:

“This year an amount of $400 million has been allocated from the budget to complete the Port of Al-Faw, and if the issue of the free zone is not dealt with, the ships and boats will come to the Kuwaiti port of Mubarak and take the corridor through Kuwait to the market or free zone directly, without the need to complete their way and reach the Iraqi Port of Al-Faw.”

(Source: Middle East Monitor)

The Cabinet held its regular weekly meeting in Baghdad on Tuesday under the chairmanship of Prime Minister Mr. Adil Abd Al-Mahdi. It approved:

  • the recommendation of the Ministerial Energy Council on the service contract for Al-Mansuriyah oil field in Diyala province;
  • a draft law on public-private partnership to strengthen cooperation between government agencies and the private sector;
  • the draft agreement between the Republic of Iraq and the Kingdom of Saudi Arabia on the avoidance of double taxation and the prevention of tax evasion’
  • measures to meet the requirements of elections to provincial councils outside the Kurdistan Region of Iraq;
  • recommendations for development of the Safwan border crossing between Iraq and Kuwait in Basra province.

(Source: Govt of Iraq)

On Tuesday, the United Nations Compensation Commission (UNCC) made available $270 million to the Governmentof the State of Kuwait towards the Commission’s remaining claim with an outstanding award balance.

The United Nations Compensation Commission was established in 1991 in accordance with Security Council resolutions 687 (1991) and 692 (1991) to process claims and pay compensation for losses and damages incurred by individuals, corporations, Governments and international organizations as a direct result of Iraq’s invasion and occupation of Kuwait (2 August 1990 to 2 March 1991).

The Commission received approximately 2.7 million claims and concluded its review of all claims in 2005.

Approximately $52.4 billionwas awarded to over 100 Governments and international organizationsfor distribution to 1.5 million claims in all claim categories.

Successful claims are paid from the United Nations Compensation Fund which receives a percentage of the proceeds generated by the export sales of Iraqi petroleum and petroleum products.

This amount was previously set at five per cent under Security Council resolution 1483 (2003), and reaffirmed in subsequent resolutions.

Pursuant to Governing Council decision 276 adopted in November 2017, the percentage was set at0.5 per cent for2018 and increased to 1.5 per cent in 2019.

This amount will increase to 3 per cent beginning in 2020 and remain at that level until such time as the outstanding compensation has beenpaid in full. Payments are made on a quarterly basis utilizing all available funds in the Compensation Fundunder Governing Council decision 267 (2009).

With today’s payment, the Commission has paid out $48.7 billion, leaving approximately $3.7 billion to be paid to the only claim with an outstanding award balance. This category E claim was submitted by the Government of the State of Kuwait on behalf of the Kuwait Petroleum Corporation and awarded $14.7 billion in 2000 for oil production and sales losses as a result of damages to Kuwait’s oil field assets.

It represents the largest award by the Commission.

(Source: UNCC)

Five years on from ISIL ‘caliphate’ proclamation in Iraq, Security Council makes first-ever visit

The UN Security Council has concluded a first-ever visit to Iraq on Saturday, five years on from the proclamation, by the ISIL terrorist group, of a “caliphate” in the country.

The visit, which also took in a trip to Kuwait, saw the members meet senior government, UN and humanitarian officials to discuss the development of Iraq, the humanitarian situation, and the ongoing security challenges faced by the Government.

Council members noted that the visit underscored their support for Iraq’s continued post-conflict recovery, and reconciliation efforts to meet the needs of all Iraqis, and emphasized the importance of the sovereignty and security of Iraq.

They also addressed the importance of funding the recovery, in meetings with World Bank representative Ghassan Khoja, which covered the effective follow-up of international pledges, including those made at the 2018 Kuwait International Conference for the Reconstruction of Iraq.

Effective government and corruption issues raised

Recent political developments in Iraq, including progress towards the full formation of the Government, were welcomed by the Security Council members, who recognized the importance of an administration that upholds the values of the country’s constitution, responding to the needs of all Iraqis, including women, youth, children, displaced persons, and persons belonging to all ethnic and religious groups.

The engagement of the national Government in resolving outstanding issues with the Kurdish Regional Government, was also singled out for praise by the members, and the issue of corruption was raised, particularly efforts towards implementing the 2018-2022 National Government program, which includes addressing corruption, and strengthening viable state institutions.

Humanitarian and security concerns

The humanitarian situation, including the delivery of basic services, remains challenging in Iraq, and the members underscored the importance of all persons internally displaced by conflict, including in areas liberated from ISIL. The need for economic reform, investment, and regional economic integration to better address the aspirations and concerns of the Iraqi people, was also noted.

Support for the UN Assistance Mission for IRAQ (UNAMI) mandate to support and assist the Government of Iraq to promote inclusive political dialogue; national, regional and community-level reconciliation and cooperation; and security and justice reform, was reaffirmed by the Security Council representatives. They also commended the Government of Iraq’s efforts, in association with local and regional authorities, to counter terrorism and encouraged them to further their coordination.

A UN investigative team set up to hold ISIL accountable for war crimes, crimes against humanity, and genocide, must remain independent and impartial, ensure its Iraqi members benefit from international expertise on the team, and make every effort to share knowledge and technical assistance with Iraq, the members insisted.

They added that the team, UNITAD – the UN Investigative Team to Promote Accountability for Crimes Committed by Da’esh/ISIL – must operate with full respect for the sovereignty of Iraq and its jurisdiction over crimes committed in its territory.

(Sources: UN, Iraq Ministry of Foreign Affairs)

By John Lee.

Kuwait will reportedly fund the reconstruction of a major border crossing with Iraq.

According to Anadolu Agency, Iraq’s Border Crossing Authority said a memorandum of understanding (MoU) has been signed between the two countries to prepare the infrastructure for the crossing at Safwan.

(Source: Anadolu Agency)