BAGHDAD: The Iraqi Parliament on Monday voted to lift financial sanctions on banks in the Kurdish region after private and government financial institutions accepted the authority of the Iraqi Central Bank and federal laws on the banking sector and control of funds to and from Iraq, lawmakers told Arab News.
The Kurdistan Regional Government (KRG) held a controversial referendum on independence in late September. Baghdad responded by imposing a series of punitive measures including stopping financial transactions between banks in the region and the Iraqi provinces.
The fourth months’-long sanctions deepened the economic crisis that has plagued the region for almost three years and led to a growing recession in wholesale markets in Baghdad.
Monday’s resolution stated that “the need for the previous (punitive) measures related to transactions with financial institutions in the Kurdistan Region taken by the Parliament has disappeared after the goal concerning the banks was achieved.”
“The resolution (the sanction) was taken by the Parliament as a response to the referendum, but now the KRG has confirmed its commitment to the laws and regulations of the Central Bank and the federal laws of money-laundering and money flowing to and from the region,” said Massoud Haider, a Kurdish federal lawmaker and a member of the parliamentary finance committee.
“The members of the (parliamentary finance) committee are convinced that keeping the sanction will encourage the black market and open the doors for terrorism organizations to take advantage of these markets to transfer money,” Haider said.
The resolution also obligates the Central Bank to monitor private and government banks operating in the region and deliver a monthly report to the parliamentary finance committee showing the level of commitment of these banks to federal laws and instructions of the Central Bank.
Baghdad has demanded the imposition of the authority of federal authorities in the region to ease the sanctions imposed since early October. Five joint technical committees were formed to agree on all pending issues between the two sides, including on oil, borders and airports, and to discuss mechanisms to impose the authority of the federal authorities on the region for the first time since 2003.
Kurdish lawmakers and finance experts told Arab News that the sanctions imposed by Baghdad had deeply affected the economy in the Kurdish region, paralyzed business transactions and stopped investment.
The parliamentary resolution will reduce pressure on the Kurdish region, which has been suffering from a serious shortage of funds due to the inability of the KRG to pay the salaries of government employees for more than two years because of financial and administrative corruption and the acquisition by a few families of oil and border crossings revenues.
“The resolution is bold and shows a breakthrough in relations between the KRG and Baghdad and will positively reflect on the economy in Kurdistan and Baghdad,” Bassim Antwan, an Iraqi finance expert, told Arab News.
“The sanctions have deeply impacted the economy in the region and caused huge money losses to private companies and people who invest in Kurdistan, and affected the prices of the real estate.
“Also, the economic recession which engulfed Kurdistan before the sanctions and intensified after that has extended to impact the wholesale markets in Baghdad and other provinces, and this resolution will revive these markets in hours,” Antwan said.
Iraqi Parliament eases financial sanctions on Kurdish region
Iraqi Parliament eases financial sanctions on Kurdish region
Donkeys offer Gazans lifeline amid war shortages
- Donkey-pulled carts were a fairly common sight in pre-war Gaza
- Displaced Gazans fleeing fighting or air strikes pile aboard them to rush to safety with their belongings
“Before the war, I used to sell milk and yoghurt, and the factory used to take the milk from me,” she said from the central Gaza city of Deir el-Balah, holding reins in one hand and a rubber stick in the other that she uses to maneuver her cart.
“Now, I have no income other than the donkey and the cart.”
Donkey-pulled carts were a fairly common sight in pre-war Gaza. But the lack of fuel and destruction in the territory since the conflict began between Israel and Hamas last year have made them one of the few remaining forms of transport.
Displaced Gazans fleeing fighting or air strikes pile aboard them to rush to safety with their belongings.
For others, a donkey cart is virtually the only form of transportation.
Marwa Yess uses a donkey cart to get around with her family.
“I pay 20 shekels ($5.40) for the cart to take me from Deir el-Balah to Nuseirat. The price is outrageous, but under these circumstances, everything seems reasonable,” she said. The distance is about five kilometers (three miles).
“I used to feel embarrassed to ride a donkey cart at the beginning of the war, but now there’s no other option,” the teacher and mother of three told AFP.
Soaring prices
According to the United Nations Food and Agriculture Organization, 43 percent of Gaza’s working animals — a category that includes donkeys, horses and mules — had been killed in the war by August 2024, leaving only 2,627 alive.
Abu Maghasib’s only running costs are fodder, she told AFP sitting on her cart, a few planks of wood held together by a metal frame and mounted on four wheels.
But the price of food for people and animals has soared.
After costs, Abu Maghasib has made a profit of 20 shekels at the end of the day from the clients who hop on and off from the roadside.
“I bought this donkey on credit, and the first donkey died in the war in Deir el-Balah after being hit by shrapnel,” she said.
The new one cost her 2,500 shekels.
Abdel Misbah, a 32-year-old man displaced with his family of 20 from Gaza City to the territory’s south, also made the livelihood switch to donkey transportation.
“I used to sell vegetables on a cart before the war. Now, I work in delivery,” he said, lamenting that “the donkey panics when the bombing gets too close.”
He too feels the pain of skyrocketing fodder prices.
“I make sure to feed it well, even though the price of barley (per sack) has gone up from three shekels to 50 shekels,” he said.
’More valuable than gold’
Israel imposed a near-total siege on Gaza in the early stages of the war last year, complicating aid and goods distribution.
The lack of fuel, war-damaged roads and looting, as well as fighting in densely populated areas and the repeated displacement of much of Gaza’s 2.4 million people, also contribute to the shortages.
A UN-backed assessment this month said famine looms in northern Gaza, and the United Nations agency supporting Palestinian refugees, UNRWA, said aid entering the territory had reached its lowest level in months.
Yusef Muhammad, a 23-year-old displaced from Gaza’s north to Khan Yunis in the south, said his donkey has become a “lifeline” for his family.
“When the war started, car fares were too expensive. I had no choice but to rely on a donkey. Thank God I had it when we were forced to evacuate.”
Beyond the widespread destruction, Israel’s military campaign has killed at least 44,211 people in Gaza, most of them civilians, according to figures from the Hamas government’s health ministry, which the UN considers reliable.
Hamas’s October 7, 2023 attack on Israel that sparked the war resulted in 1,206 deaths, mostly civilians, according to an AFP tally of Israeli official figures.
When Israeli military evacuation orders, which usually precede fighting and bombing, send thousands of people and their belongings onto the road in an instant, donkey carts can be one of the only ways out of danger.
Hosni Abu Warda, 62, said his home was destroyed in the northern area of Jabalia, the scene of an intense Israeli military operation since early October.
When he fled, Abu Warda said he had no choice but to turn to four-hoofed transportation. He waited 14 hours for a cart before escaping with his family “packed like sardines.”
In times like these, “the donkey is more valuable than gold and even more valuable than modern cars,” Abu Warda said.
Mikati warns Israeli military action in Lebanon a rejection of political solution
- Borrell in Beirut: Pressure must be exerted on Israel, Hezbollah to accept US proposal
- Israel steps up bombardment of capital’s southern suburbs
BEIRUT: An Israeli strike on a Lebanese army center on Sunday killed a soldier and wounded 18 others, the Lebanese military said, with the caretaker prime minister, Najib Mikati, calling the attack “a direct bloody message rejecting all efforts to reach a ceasefire.”
The attack came as top EU diplomat Josep Borrell called for an immediate ceasefire in the Israel-Hezbollah war while on a visit to Lebanon.
According to the Lebanese Army Command, the first adjutant, Diab Mohammed Jaafar, was killed when Israel targeted Al-Amariyeh checkpoint on the road between Tyre and the town of Naqoura.
In a statement, Mikati said: “Israel’s messages rejecting a solution are ongoing, and just as it turned against the US-French call for a ceasefire in September, here it is once again responding with Lebanese blood, blatantly rejecting the solution that is being discussed.”
He called on “the countries of the world and the relevant international institutions to assume their responsibilities on the issue.”
Mikati’s condemnation came amid growing concerns that the Israeli military is trying to solidify its westward incursion in the coastal town of Al-Bayada, located between Tyre and Naqoura, while facing strong resistance from the eastern side of the border area in its positions in Khiyam.
Israeli forces are trying to encircle the South Litani area from both sides.
Hezbollah said it “targeted a gathering of the enemy army s forces east of the city of Khiyam with a salvo of rockets,” and “a gathering of Israeli forces at the Metula site (Israel’s outlet toward Khiyam) was targeted with a volley of rockets followed by an aerial attack with a squadron of assault drones … hitting its targets accurately.”
The Israeli military said Hezbollah launched 160 projectiles toward Israel on Sunday.
Sirens sounded across northern and central Israel, reaching Tel Aviv at successive intervals, forcing thousands of Israelis to head toward shelters.
Footage from central Israel showed extensive material damage and fires.
The Israeli military issued further warnings to residents of Beirut’s southern suburbs to evacuate, targeting Bourj Al-Barajneh and Hadath.
Former Israeli minister Benny Gantz claimed that the Lebanese government “is leaving Hezbollah unchecked,” adding: “It is time to act against its assets forcefully.”
These developments came during a round of discussions conducted by Borrell, high representative of the EU for foreign affairs and security policy, in Beirut with Mikati and Speaker Nabih Berry.
In a statement, Borrell stressed the need for exerting pressure on Israel and Hezbollah to accept the US proposal for a ceasefire.
Borrell emphasized that “the situation in the Middle East, particularly here in Beirut, presents a significant challenge to the international community. The international community cannot remain inactive in the face of these events. The absence of peace in the Middle East has reached an intolerable level, and people are dying under bombardment.”
He added that two months on from his last visit to Beirut, he now views Lebanon as on the verge of collapse due to the conflict, which has led to the devastation of numerous villages, as well as airstrikes aimed at Beirut and Baalbek. He also reiterated that “the human cost is exceedingly high.”
Borrell said Israeli airstrikes had claimed the lives of over 3,500 people in Lebanon, a figure three times greater than the casualties recorded in 2006.
The only viable path forward, Borrell said, is an immediate ceasefire and the full implementation of Security Council Resolution 1701.
Borrell praised the UNIFIL forces and confirmed the EU’s readiness to allocate €200 million ($208.3 million) to the Lebanese Armed Forces.
He emphasized the Lebanese need to “assume their political responsibilities by electing a president and putting an end to this prolonged power vacuum that has exceeded two years.”
Borrell said a ceasefire proposal for Gaza is pending Israeli government approval, and “we, as the international community, need to work to ensure the respect of international law, as we see famine being used as a weapon of war through international law violations, the complete siege imposed on Gaza and the number of people that are dying in Lebanon.”
He added that in his view the decisions of the International Criminal Court to issue arrest warrants for Israeli Prime Minister Benjamin Netanyahu and his former defense minister, Yoav Gallant, for Israel’s activities in Gaza were not politically motivated and had been made under international law, which applied to everyone. “We strongly support the court,” he said.
15 Turkish-backed fighters killed in north Syria clashes with Kurdish-led forces
- SDF fighters “infiltrated positions of the Turkish-backed” troops in the Aleppo countryside, the Syrian Observatory for Human Rights war monitor said
- The SDF is a US-backed force that spearheaded the fighting against the Daesh group in its last Syria strongholds before its territorial defeat in 2019
BEIRUT: At least 15 Ankara-backed Syrian fighters were killed Sunday after Kurdish-led forces infiltrated their territory in the country’s north, the Syrian Observatory for Human Rights war monitor said.
Fighters from the Syrian Democratic Forces (SDF), who controls swathes of the country’s northeast, “infiltrated positions of the Turkish-backed” fighters in the Aleppo countryside, said the Observatory, which has a network of sources inside Syria.
“The two sides engaged in violent clashes” that killed 15 of the Ankara-backed fighters, the monitor said.
An AFP correspondent in Syria’s north said the clashes had taken place near the city of Al-Bab, where authorities said schools would be suspended on Monday due to the violence.
The SDF is a US-backed force that spearheaded the fighting against the Daesh group in its last Syria strongholds before its territorial defeat in 2019.
It is dominated by the Kurdish People’s Protection Units (YPG), viewed by Ankara as an offshoot of the outlawed Kurdistan Workers’ Party (PKK) which claimed the attack on Ankara.
Turkish troops and allied rebel factions control swathes of northern Syria following successive cross-border offensives since 2016, most of them targeting the SDF.
Israel moving towards a ceasefire deal in Lebanon, Axios reports
BEIRUT: Israel is moving towards a ceasefire agreement in Lebanon with the Hezbollah militant group, Axios reporter Barak Ravid posted on X on Sunday, citing a senior Israeli official.
A separate report from Israel's public broadcaster Kan, citing an Israeli official, said there was no green light given on an agreement in Lebanon, with issues still yet to be resolved.
Russian plane catches fire after landing in Turkiye but passengers and crew are safely evacuated
- “Eighty nine passengers and six crew members on board were safely evacuated at 9:43 p.m. (1843 GMT) and there were no injuries”
ANKARA, Turkiye: The engine of a Russian plane with 95 people on board caught fire after landing at Antalya airport in southern Turkiye on Sunday, Turkiye’s transportation ministry said. All passengers and crew were safely evacuated.
The Sukhoi Superjet 100 type aircraft run by Azimuth Airlines had taken off from Sochi and was carrying 89 passengers and six crew members, the ministry said in a statement.
The pilot made an emergency call after the aircraft landed at 9:34 p.m. local time, and airport rescue and firefighting crews quickly extinguished the fire, according to the statement.
No one was hurt, the statement said.
The cause of the fire was not immediately known.
A video of the incident posted by the aviation news website, Airport Haber, showed flames coming out from the left side of the plane as emergency crews doused the aircraft. Passengers were seen evacuating the plane through an emergency slide, some carrying belongings.
The transportation ministry said efforts were underway to remove the aircraft from the runway. Arrivals at the airport were temporarily suspended while departures were taking place from a military-run runway.
