Germany may consider withdrawing from Kurdish gas agreement
Germany may consider withdrawing from Kurdish gas agreement
Germany signaled considering withdrawal from a gas distribution agreement with Federal Kurdistan Government after Baghdad has rejected as illegal.
The deal foresees a future role for RWE, a leading German energy company, in developing infrastructure for gas distribution network.
The Iraqi oil ministry has said the agreement between RWE and the Kurdish Regional Government is illegal because the country's oil and gas are federal resources to be administered centrally.
Asked about the dispute, a spokesman for the German economy ministry said: "RWE is a consortium member of the Nabucco project, which is of central importance for the diversification of European gas supply. RWE is responsible for its own business decisions."
"It is not up to the German government to judge the legality of the aforementioned contract," Stefan Bredohl from the foreign ministry told a regular government news conference in Berlin.
RWE says it is aware of sensitivities in the region, and is seeking dialogue with all sides in order to implement the deal.
"We are very much aware that we have to speak with all relevant authorities in Iraq, and are taking steps now to prepare for the dialogue with the government in Baghdad," the company said in a statement.
The deal foresees a future role for RWE, a leading German energy company, in developing infrastructure for gas distribution network.
The Iraqi oil ministry has said the agreement between RWE and the Kurdish Regional Government is illegal because the country's oil and gas are federal resources to be administered centrally.
Asked about the dispute, a spokesman for the German economy ministry said: "RWE is a consortium member of the Nabucco project, which is of central importance for the diversification of European gas supply. RWE is responsible for its own business decisions."
"It is not up to the German government to judge the legality of the aforementioned contract," Stefan Bredohl from the foreign ministry told a regular government news conference in Berlin.
RWE says it is aware of sensitivities in the region, and is seeking dialogue with all sides in order to implement the deal.
"We are very much aware that we have to speak with all relevant authorities in Iraq, and are taking steps now to prepare for the dialogue with the government in Baghdad," the company said in a statement.
