The Kurdistan Regional Government (KRG) and the federal government have reached an agreement on non-oil revenues for the coming months, which are scheduled to be transferred to Baghdad, according to a source from the KRG Council of Ministers.

The source told Channel8 that the technical teams from the Ministries of Finance and the Financial Supervision Bureaus of both sides have agreed on the amount of non-oil revenues and the federal shares of those revenues.

The source said that, per the agreement, the non-oil revenue for June will be transferred to Baghdad today or tomorrow.

In recent weeks and days, efforts have intensified to resolve disputes between Erbil and Baghdad. These efforts resulted in an agreement last week on a mechanism for oil exports, while negotiations on non-oil revenues are still ongoing.

One point of contention involves Erbil’s proposal to transfer 50% of non-oil federal revenues to Baghdad for July and the following months until the end of the year, while Baghdad insists on receiving half of the total domestic revenues under the Federal Financial Management Law. Erbil reportedly cannot provide the amounts Baghdad asked for.

Speaking to Channel8 earlier, a government source noted that Baghdad was informed the Kurdistan Region is ready to pay 120 billion dinars for June alone, but for the following months only 50% of non-oil federal revenues will be transferred.

An official source in the KRG also confirmed that 120 billion dinars in non-oil revenues have been prepared for transfer to the federal government, pending “technical measures.”

The source stated that once the transfer is made, June salaries for Kurdistan Region employees will be paid. He added that discussions with Baghdad are nearing completion on determining the Region’s share of non-oil revenues.