Iraq’s Deputy Prime Minister Husain al-Shahristani and Kurdish Prime Minister Nechirvan Barzani this week spoke separately about the outcome of talks held in Baghdad to try to resolve the impasse over Kurdish oil exports through Turkey.

Remarks by Dr Shahristani in London and Mr Barzani in Erbil would suggest a tentative move towards an amicable solution to the long-running row, but one sticking point remains on which neither side appears willing to compromise. However, with the federal budget now awaiting parliamentary approval, it is equally clear that neither side can achieve its economic goals without agreement on a revenue-sharing mechanism. (CONTINUED - 3437 WORDS)