The Kurdish regional government in northern Iraq says it has reached an agreement with Baghdad over longstanding oil and budget disputes.
In a statement posted on its official website today, the Kurdish government said it had agreed to sell 150,000 barrels of oil per day to the federal government for USD 500 million.
Earlier this year, Baghdad cut the 17 per cent of the state budget some USD 20 billion in this year's projected budget that is supposed to go to the Kurdish region.
The central government withheld the funds after the Kurds began transporting oil from fields inside the autonomous zone to Turkey against Baghdad's wishes.
