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Iraq’s Shahristani: dispute with Kurds an internal affair

Iraq's Deputy Prime Minister for Energy Hussain al-Shahristani speaks during an interview with Reuters in central London April 18, 2012. REUTERS/Paul Hackett

By Alister Bull

WASHINGTON (Reuters) – A simmering dispute between Iraq’s central government

and the semi-autonomous region of Kurdistan is an internal affair, a top Baghdad official said on Thursday, in an implicit

rebuff of U.S. efforts to broker a compromise between the two sides.

“Of course there is American interest and goodwill to facilitate an understanding,” said

Iraqi Deputy Prime Minister for Energy Hussain al-Shahristani.

“But it was clear to all sides that any internal matter

has to be discussed by Iraqis inside Iraq,” he told reporters after meeting with U.S. Vice President Joe

Biden.

Washington is anxious to ease a political crisis that erupted after U.S. troops left Iraq last year, which

analysts fear could strain the country’s unity if it escalates further.

Oil is at the heart of the broad dispute

between Kurdistan in northern Iraq and the central government, which worsened when the Kurds stopped oil exports to Baghdad

earlier this month in protest over non-payment.

Shahristani said no progress had been made in lifting the Kurdish oil

export embargo.

“They were supposed to be sending a delegation to Baghdad, which has not come, to discuss this issue,”

he said.

Kurdistan Regional Government President Masoud Barzani recently met Biden in Washington and has also visited

Turkish Prime Minister Tayyip Erdogan, who has publicly chided Iraqi Prime Minister Nuri al-Maliki for stoking the

conflict.

This blunt break with traditional diplomacy drew sharp words from Baghdad, which Shahristani echoed in

Washington.

“We regret that we hear some of the comments that have been coming from Ankara,” he said. “We do not

appreciate comments from others, or interference in our internal affairs.”

However, Shahristani said he did not expect

the dispute to harm trade, including oil exports, between the two neighbours. Iraq is Turkey’s second-largest trading

partner with trade of $12 billion last year.

In addition, Iraqi cleric Moqtada al-Sadr, a powerful broker in the

country’s coalition government, visited Kurdistan on Thursday in an effort to lower tensions.

Shahristani said

bilateral talks were welcome, “but they are not a substitute for a national conference, where all parties are

present.”

The White House, concerned by high U.S. gasoline prices in an election year, wants to do everything possible

to boost the supply of oil on to world markets.

Biden’s office said the vice president had “reaffirmed our commitment

to work with Iraqi leaders across the spectrum to support the continued development of Iraq’s energy sector.”

Iraq

sits atop some of the largest oil reserves in the world and has ambitious plans to lift production.

But development

has been clouded by tension between Baghdad and the Kurds, who have signed exploration deals with several foreign oil

companies, including U.S. oil major Exxon Mobile, which are deemed illegal by the central government.

Shahristani said

the issue of Exxon Mobile had not been raised during the talks with Biden on Thursday.

(Reporting By Alister Bull;

editing by Todd Eastham)

 

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