AKP loses arbitration case in Paris: IYI Party's Çömez reveals 'the truth' about the $1.47 billion fine

The compensation ruling of approximately $1.47 billion issued against Turkey by the International Chamber of Commerce (ICC) Court of Arbitration—based on the claim that oil exports conducted via the Kurdistan Regional Government (KRG) violated international agreements—has passed a significant milestone toward finalization following the rejection of the annulment case filed in Paris.

The decision means that Turkey's attempt to overturn the arbitration ruling has proven unsuccessful.

Çömez: Citizens Will Pay the Price of the Process

Making a statement following the decision, IYI Party Group Deputy Chairman Turhan Çömez argued that the oil trade conducted with the KRG administration, while bypassing the Iraqi Central Government, has placed a heavy financial burden on Turkey.

According to Çömez, while oil transported via pipeline from Kirkuk to Ceyhan was exported to world markets during this process, numerous domestic and foreign companies generated billions of dollars in revenue from this trade. However, stating that the $1.47 billion fine resulting from the arbitration will be covered by Turkey, Çömez noted that this amount is equivalent to approximately 1.5 times the 2026 budget of the Ministry of Foreign Affairs.

1973 Pipeline Agreement Debate

Turhan Çömez argued that there have been long-standing warnings that the oil shipment in question constituted a violation of the Crude Oil Pipeline Agreement signed between Turkey and Iraq in 1973.

Claiming that legal risks were not sufficiently taken into account during this process, Çömez alleged that the resulting financial burden would be covered by public resources.

Claim of "Two More Arbitration Cases on the Agenda"

In his statement, Çömez also claimed that two new international arbitration cases related to the same oil trade are expected to be filed.

The IYI Party deputy alleged that if these cases also result against Turkey, the total cost could reach up to $5 billion, stating, "While some are making huge profits, the citizens living in poverty will pay the price."

How Did the Process Begin?

The Iraqi Central Government had applied to the ICC Court of Arbitration on the grounds that the oil exports Turkey carried out via the Ceyhan Port with the approval of the Kurdistan Regional Government, but without Baghdad's approval, violated the pipeline agreement between the two countries.

The court ruled that Turkey had violated its obligations arising from the agreement and ordered approximately $1.47 billion in compensation. Turkey had applied to the judiciary in Paris for the annulment of this decision, but the court has now rejected this request.