Associated Press
Posted on July 15, 2012 at 12:02 PM
BAGHDAD (AP) ? Iraq's government has warned Turkey that its separate oil deal with the northern self-ruled Kurdish region could damage bilateral relations.
This month, Iraq's Kurds announced that they have started exporting crude oil to Turkey. The goal is to swap it for refined petroleum products to meet domestic demand.
The Kurdish government negotiated the deal with Turkey in May, without going through Baghdad.
On Sunday, Iraqi government spokesman Ali al-Dabbagh accused Turkey of "participating in smuggling of Iraqi oil," insisting Iraqi oil must be exported only by the central government.
He warned, "This issue will affect relations between two countries, especially the economic ones."
The governments in Baghdad and Kurdistan have long been at odds over authority to make oil deals.
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