popular articles

Turkey and Iran profit from Kurdish oil via parallel trade

The illegal export of Kurdish oil to Iran and Turkey, accelerated by the closure of an official pipeline, is raising major economic and political concerns in Iraq.
Commerce illicite de pétrole kurde

Please share:

The illicit oil trade from Kurdistan to Iran and Turkey is booming, prompted by the closure of the Iraq-Turkey Pipeline (ITP) in 2023. Hundreds of tankers transport around 200,000 barrels of discounted oil every day, generating monthly revenues of almost $200 million. This unofficial trade, now crucial to the regional economy, has developed because of the legal complexities surrounding the export of oil through official channels.

Issues and players involved

The closure of the pipeline prompted Kurdistan to step up trucking of oil to neighboring countries, outside any regulatory framework. Oil industry sources and diplomats reveal that this situation is contributing to Iraq’s inability to meet the production cuts agreed with the Organization of the Petroleum Exporting Countries (OPEC). What’s more, income from this activity is completely unregistered, exacerbating tensions between the Iraqi federal government and the Kurdish Regional Government (KRG).

Economic and political impact

The parallel oil trade has major implications for relations between Kurdistan and its allies, notably the United States. The US authorities are examining whether this trade violates the economic sanctions imposed on Iran. This situation could also complicate relations with Turkey, which was involved in stopping official exports following international arbitration in Iraq’s favor.

Local consequences

The Kurdish economy, struggling to pay its public employees, benefits from these unofficial revenues, but to the detriment of transparency and legality. Local officials admit that oil trading revenues are not recorded in any official register, fuelling suspicion and accusations of corruption.

Analysis and outlook

This situation highlights a recurring problem in the Middle East: the illegal trade in natural resources, often facilitated by local political and economic players. Authorities in the region, as well as international observers, are concerned about the long-term consequences of this illicit trade, which could reinforce internal divisions and further weaken Iraq’s central authority.
The roads used by the tankers have also become points of tension, with frequent accidents and damaged infrastructure, angering local residents.
The parallel oil trade in Iraqi Kurdistan, while lucrative in the short term, represents a major challenge to the region’s economic and political stability. The closure of the ITP pipeline has not only disrupted traditional trade flows, but also opened the door to unregulated transactions that complicate national and international resource management. While the authorities seek solutions to regularize and monitor this trade, the question of transparency and fair distribution of revenues remains a burning issue.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The United States is considering a 25% tax on Canadian oil imports, threatening a strategic energy partnership. This measure could disrupt Alberta’s economy and global oil markets.
Slovak Prime Minister Robert Fico and Ukrainian President Volodymyr Zelensky plan discussions on the partial resumption of Russian gas transit, representing 25% of the volumes needed for Slovakia.
Slovak Prime Minister Robert Fico and Ukrainian President Volodymyr Zelensky plan discussions on the partial resumption of Russian gas transit, representing 25% of the volumes needed for Slovakia.
As Nicolás Maduro begins a contested third term and Donald Trump prepares to return to the White House, tensions between Washington and Caracas reach a critical point. Between tightened sanctions, strategic alliances, and oil stakes, 2025 is shaping up to be a pivotal year for these two nations.
As Nicolás Maduro begins a contested third term and Donald Trump prepares to return to the White House, tensions between Washington and Caracas reach a critical point. Between tightened sanctions, strategic alliances, and oil stakes, 2025 is shaping up to be a pivotal year for these two nations.
Russia reports that nine Ukrainian drones targeted a TurkStream pipeline station, without disrupting deliveries to Europe. This incident highlights the geopolitical stakes of energy infrastructure.
Russia reports that nine Ukrainian drones targeted a TurkStream pipeline station, without disrupting deliveries to Europe. This incident highlights the geopolitical stakes of energy infrastructure.
Discussions in Geneva between Iran and the E3 group aim to regulate uranium enrichment now reaching 60%, while adhering to international regulatory frameworks.
The separatist authorities of Transdniestria, grappling with the halt of Russian gas deliveries, are calling on Moscow for help to prevent a humanitarian crisis exacerbated by power outages and an economy on the brink of collapse.
The separatist authorities of Transdniestria, grappling with the halt of Russian gas deliveries, are calling on Moscow for help to prevent a humanitarian crisis exacerbated by power outages and an economy on the brink of collapse.
Faced with US sanctions targeting Russian oil, Serbia is negotiating with Moscow to ensure the full withdrawal of Russian shares in its main gas supplier, NIS, 56% owned by Gazprom and Gazprom Neft.
Faced with US sanctions targeting Russian oil, Serbia is negotiating with Moscow to ensure the full withdrawal of Russian shares in its main gas supplier, NIS, 56% owned by Gazprom and Gazprom Neft.
A tanker carrying 99,000 tons of oil, stranded in the Baltic Sea, has been secured by German rescue operations. The incident reignites debates over Russia's "ghost fleet" and its environmental implications.
A tanker carrying 99,000 tons of oil, stranded in the Baltic Sea, has been secured by German rescue operations. The incident reignites debates over Russia's "ghost fleet" and its environmental implications.
Washington and London impose historic sanctions on the Russian energy sector, targeting Gazprom Neft and a fleet of 200 ships. Moscow accuses the U.S. of global destabilization, while Biden defends the strategic impact.
Lithuania strengthens the protection of the LitPol Link, its critical connection with Poland, ahead of its planned disconnection from the Russian power grid in February.
Lithuania strengthens the protection of the LitPol Link, its critical connection with Poland, ahead of its planned disconnection from the Russian power grid in February.
Electric interconnections have reshaped global energy systems, enabling cross-border cooperation and economic stability. Rooted in Oxford Energy Institute research, this piece highlights key agreements, technological milestones, and the diplomatic strategies driving these transformative infrastructures.
Electric interconnections have reshaped global energy systems, enabling cross-border cooperation and economic stability. Rooted in Oxford Energy Institute research, this piece highlights key agreements, technological milestones, and the diplomatic strategies driving these transformative infrastructures.
Donald Trump, the president-elect of the United States, attacks the United Kingdom's energy policies, blaming high taxes in the North Sea for pushing companies like APA Corporation to exit the region by 2029.
Donald Trump, the president-elect of the United States, attacks the United Kingdom's energy policies, blaming high taxes in the North Sea for pushing companies like APA Corporation to exit the region by 2029.
Turkey Provides 58 GW of Electricity to Northern Syria in 2024
An undersea cable linking Finland and Estonia has been damaged in the Baltic Sea. Suspected of belonging to the Russian "ghost fleet," the tanker Eagle S is at the center of investigations, reinforced by a Swedish naval vessel.
An undersea cable linking Finland and Estonia has been damaged in the Baltic Sea. Suspected of belonging to the Russian "ghost fleet," the tanker Eagle S is at the center of investigations, reinforced by a Swedish naval vessel.
The halt of Russian gas deliveries in Transnistria triggers a significant industrial decline, emphasizing critical energy and economic tensions in the unrecognized region.
The halt of Russian gas deliveries in Transnistria triggers a significant industrial decline, emphasizing critical energy and economic tensions in the unrecognized region.
Bulgarian and Hungarian ministers discussed ambitious energy projects aimed at strengthening regional energy security, including two green corridors and initiatives to diversify supply chains.
Bulgarian and Hungarian ministers discussed ambitious energy projects aimed at strengthening regional energy security, including two green corridors and initiatives to diversify supply chains.
Recent U.S. strikes in Yemen targeted critical Houthi infrastructure, resulting in the destruction of seven drones and missiles amid heightened tensions over Red Sea maritime routes.
The interruption of Russian gas transit through Ukraine affects 14 billion cubic meters annually, triggering major political and economic consequences for Eastern Europe.
The interruption of Russian gas transit through Ukraine affects 14 billion cubic meters annually, triggering major political and economic consequences for Eastern Europe.
Niger accuses Nigeria of involvement in an attack on its pipeline to Benin. This incident highlights growing political and economic tensions in the region.
Niger accuses Nigeria of involvement in an attack on its pipeline to Benin. This incident highlights growing political and economic tensions in the region.
A Maersk vessel was struck by a drone attack claimed by Houthi rebels near Socotra, reigniting concerns over maritime security in the Red Sea amidst escalating regional tensions.
A Maersk vessel was struck by a drone attack claimed by Houthi rebels near Socotra, reigniting concerns over maritime security in the Red Sea amidst escalating regional tensions.
Gazprom suspends gas deliveries to Moldova starting January 1, citing a $700 million debt dispute. This interruption, in the midst of political tensions, underscores the country's energy dependency.
The halt of Russian gas transit through Ukraine threatens energy supplies in Eastern Europe. Slovakia could face a €150 million cost increase, amplifying political and economic tensions.
The halt of Russian gas transit through Ukraine threatens energy supplies in Eastern Europe. Slovakia could face a €150 million cost increase, amplifying political and economic tensions.
Following the rupture of the EstLink 2 cable connecting Finland and Estonia, Tallinn deploys its navy to protect underwater energy infrastructure, highlighting the urgency of ensuring regional energy security.
Following the rupture of the EstLink 2 cable connecting Finland and Estonia, Tallinn deploys its navy to protect underwater energy infrastructure, highlighting the urgency of ensuring regional energy security.
Finland suspects a Russian ship of damaging an undersea cable connecting the country to Estonia. NATO and regional states are mobilizing in response to the growing threat.
Finland suspects a Russian ship of damaging an undersea cable connecting the country to Estonia. NATO and regional states are mobilizing in response to the growing threat.

Advertising