Tensions mount as Turkey warns Iraq not to involve Iraqi Kurdish administration in oil trade

ANKARA, Turkey: Turkey warned Iraq Monday not to involve the Kurdish administration in northern Iraq in oil business between the two countries.

The warning came after Iraq's State Oil Marketing Organization asked Turkish companies to seek permission from the Iraqi Kurdish government when doing deals with Iraq's oil-rich north.

State Minister Kursad Tuzmen, who is in charge of foreign trade, said Turkey would only deal "with the central Iraqi government" and not with Iraqi Kurdish authorities, adding that he has sent Iraqi authorities a "strong letter," outlining Turkey's stance.

Tuzmen's warning to Iraq came amid unconfirmed reports that Turkey has halted or slowed down export of oil products to neighboring Iraq in alleged retaliation after Iraq's state oil company, SOMO, asked Turkish firms, whose contracts were about to expire, to deal with local Iraqi Kurdish authorities to obtain new contracts earlier this month.

Turkey is concerned about the growing power of Iraqi Kurds and has repeatedly warned Iraqi Kurdish groups against trying to seize control of the oil-rich city of Kirkuk, saying Turkey will not stand by amid growing tensions among ethnic Turkmens, Arabs and Kurds in Iraq's oil-rich north.

"If Turkey is ... tested, then the price of it would be dear," Tuzmen warned. "If there is a serious state, it must stand behind its signatures."

Read the rest at the International Herald Tribune

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