UPDATE - Road Project means connecting East to Europe through Iraq and Türkiye: Premier Sudani

ADDS BACKGROUND; REVISES HEAD, THROUGHOUT

By Mehmet Alaca

ANKARA (AA) - Iraq's prime minister emphasized in an interview with Anadolu on Friday that the Development Road Project will connect the eastern world to Europe through Iraq and Türkiye.

“First, we must historically consider Iraq's role in trade between the East and the West. For centuries, and I am not exaggerating when I say since prehistoric times, Mesopotamia has been a trade corridor, a plain favored by trade caravans for traversing its routes and engaging in trade with its cities and urban centers,” Mohammed Shia Al Sudani said in the exclusive interview.

“The Development Road is fundamentally a restoration of this historical role, linking Al-Faw Port to the Turkish border, which according to current market equations and international trade movements, connects the East and Europe via Iraqi and Turkish territories,” he added.

The Iraqi premier also underlined that “this region experiences fluctuations in conflicts and tensions.”

“This necessitates focusing efforts on projects that intertwine interests and benefits. The Development Road will provide an opportunity for the emergence of industrial cities along its sides, complementing the trade passing through it,” he said, further adding that they will inaugurate the first berths of Al-Faw Port later this year. “And the initial flow of goods through the Development Road corridor will begin. All economic indicators and feasibility studies suggest that this corridor is the most cost-effective and fastest among the available routes. We do not claim it is a substitute, but regional and international trade genuinely needs the Development Road,” he said.

“This project connects and enhances the overlapping interests and the factors for economic sustainability.”

- Water cooperation between Türkiye, Iraq

The premier also touched upon the water cooperation between the two neighbors.

“It is clear to everyone that the Tigris and Euphrates rivers are the lifelines of Iraq, a land known as Mesopotamia before any other name, and the water file is one of the important strategic issues between Iraq and Türkiye for decades,” he said.

“In recent years, we have experienced seasons of water scarcity that were harsh, and in some cases, we were unable to secure drinking water for several cities and southern provinces. The Turkish side has observations about the uses of water in Iraq. On the ground, we have made significant progress in incorporating modern technology for irrigation uses, positively reflecting on water conservation,” Sudani added, further stating that the “Turkish experience is pioneering in water resource management.”

Underlining that Iraq proposed a water management initiative, which is a framework agreement that will last 10 years, he said that the move is “aimed at improving water management and implementing developmental projects and exchanging expertise in the field of modernizing irrigation systems and technologies, including dams.”

“We have made it clear to everyone that it is in no one's interest, neither Türkiye's nor the region's, for the problem regarding Iraq's share of the waters of the Tigris and Euphrates rivers to exacerbate. Ultimately, we are linked by one lifeline, which is the basis of Iraq's civilizational existence over thousands of years,” he said.

- Iraq’s gas strategy

Sudani also mentioned that “harnessing gas is a strategic choice for Iraq” and that their national wealth “must be optimally employed to serve our people and development plans.”

The Prime Minister also warned that “the ongoing practice of gas flaring must stop, first, because of the waste of this resource that could be utilized, and secondly because of the environmental impacts.”

“We have announced a special licensing round for harnessing gas fields, and we plan for Iraq to be self-sufficient in domestic gas production within 3 years. Iraq is confidently progressing to become a significant element in the gas market within 5 years. We will achieve self-sufficiency in this resource for electricity production,” he said, adding that “having a technological base for gas harnessing is simultaneously a foundation for a broader range of petrochemical industries, which is our goal.”

The premier also emphasized that Iraq is open to “any reputable and specialized company wishing to participate in this sector, just as we welcome regional companies because they will broaden the base of cooperation in other areas.”

“It is important to understand that harnessing gas means generating additional resources for development in Iraq, which can be used in various promising economic fields, and these areas will be open for participation by Turkish companies and other friendly nations,” he said.

- Türkiye-Iraq trade volume

Sudani further touched upon the trade volume between Türkiye and Iraq, which was at $24.2 billion in 2022, and $19.9 billion in 2023.

Increasing the bilateral trade volume with Türkiye is possible through vertical expansion. However, we are also aiming for horizontal expansion. In short, this is the role of the Development Road Project and its associated initiatives,” he said.

“The goal is to expand trade horizontally so that interests are intertwined in the region. Experience and recent history have shown that a country's progress in isolation
from its neighbors is uncertain and fraught with potential conflicts,” Sudani added.

“Therefore, we focus on increasing the capacity for exchange and actual partnership as a guarantee of stability and long-term deep relationships. In our relationship with the Turkish brothers, we have also focused on one of the most promising sectors for investment and cooperation—the agricultural sector—and soon, we will see practical steps in this area, along with the participation of Turkish companies,” the premier concluded.

- Resumption of oil flow

Sudani also commented on the prospects of the resumption of oil flow from Iraq.

“The stopping of pumping Iraqi oil extracted from the fields of the Kurdistan Region of Iraq (KRG) is undoubtedly a loss for Iraq, and at least it is a missed benefit that could support development plans in the provinces of the Kurdistan Region of Iraq and strengthen the overall Iraqi economy,” he said.

“We have initiated acceptable settlements and legal solutions after a thorough legal study. However, the matter remains bound by legal commitments. The Federal Budget Law requires that the cost of producing one barrel of oil in all fields be within the national average production cost, which is about $8 per barrel, according to the Federal Ministry of Oil,” the premier underlined, further stating that KRG’s Ministry of Natural Resources calculates the production cost at about $26 per barrel “within the contracts signed with the operating oil companies.”

“We have proposed either to amend the budget law or to amend the agreements and contracts with these companies. From this perspective, the companies stopped production, not because of a ban from the federal government, but waiting for a solution,” he said.

“The companies refused to amend the contracts, while the regional government agreed. For these reasons, more work is needed to find a legal solution that prioritizes ensuring the rights of Iraq and its people to their wealth,” Sudani added.

“As for transporting Basra's oil through Turkish ports, the matter is under study and determining the economic feasibility is paramount before anything else.”

- Fight against PKK terror

The Iraqi premier also mentioned the presence of the PKK terrorist group on Iraqi soil since the 1980s, when asked about the Iraqi government’s move to put it on the list of “banned” organizations and whether they are considering recognizing it as a terrorist group.

Circumstances of PKK’s presence are “well-known,” Sudani said, “as are the reasons for the tension and conflict.”

“It is an issue that has not seen enough efforts to resolve it fundamentally,” he added, saying that Iraq “adheres to consistent principles” when dealing with PKK or “any other entity.”

“The presence of this party's members was as individual refugees. According to our constitution, which clearly prohibits any armed military activity targeting neighboring countries from Iraqi territory, this poses a constitutional issue,” he said.

“Therefore, our Ministerial Council for National Security decided to consider the organizations of this party as legally banned organizations. We also took regulatory measures regarding Makhmur Refugee Camp, and the process of registering and updating the names of the residents in the camp,” Sudani said.

“The same will apply to any organization or party that targets any of the neighboring countries, not just Türkiye. It is important to recognize that allowing old problems to escalate benefits no one,” he underlined.

“Similarly, permitting the movement of armed elements that threaten regional stability is detrimental to all. Stability is essential for the region to overcome its economic, political, and other deep-rooted challenges.”

In its more than 35-year terror campaign against Türkiye, the PKK – listed as a terrorist organization by Türkiye, the US, and the EU – has been responsible for the deaths of more than 40,000 people, including women, children, and infants.