U.S. backs Kurdistan gas deals despite Iraq lawsuit

WASHINGTON,— The U.S. government on Tuesday voiced support for contracts between American energy firms and the Kurdistan Regional Government (KRG), despite a legal challenge filed by the federal government of Iraq.

According to State Department spokesperson Tammy Bruce, Secretary of State Marco Rubio met last week with KRG’s outgoing Prime Minister Masrour Barzani during the Kurdish leader’s visit to Washington.

Barzani announced the signing of two energy agreements reportedly worth several tens of billions of dollars.

Rubio “commended” the contracts, Bruce told reporters, and emphasized the importance of cooperation between the central government in Baghdad and the Kurdish administration in Erbil.

“We encourage both sides to collaborate in boosting domestic gas output. Partnerships like these serve the broader interests of the Iraqi and American people and contribute to Iraq’s energy self-reliance,” Bruce said.

She added that U.S. strategic interests are supported by “a strong and resilient Kurdistan region within a unified, prosperous Iraqi federal system.”

However, the deals were finalized without coordination with Iraq’s federal authorities, triggering sharp criticism from Baghdad.

The Iraqi Ministry of Oil swiftly condemned the agreements on Tuesday, calling them a “clear breach of Iraqi law” and asserting that all oil and gas development must be overseen by the federal government. In a public statement, the ministry said the contracts were unauthorized.

Legal analysts and political commentators in both Iraq and the Kurdistan region raised concerns about the caretaker government’s authority to sign new long-term energy pacts during its transitional period.

The Kurdistan region has also faced longstanding accusations of financial mismanagement. According to anti-corruption watchdogs, Kurdish lawmakers, and leaked internal documents, billions of dollars in oil revenue remain unaccounted for.

Critics have repeatedly accused the region’s ruling Barzani family—often referred to by observers as the “Kurdish oligarchs”—of using state resources and the energy sector to build personal wealth, amid persistent allegations of nepotism and lack of transparency.

Regarding the lawsuit, Bruce stated that Washington remains committed to encouraging further energy investments and expects such agreements to grow in number. “We look forward to seeing continued progress on similar projects,” she said.

(With files from AFP)