Debate in the Turkish Parliament over the Turkey-Iraq oil pipeline and $1.47 billion compensation: Rejected by AKP and MHP votes

Explaining the rationale behind the IYI Party's motion, Afyonkarahisar MP Hakan Şeref Olgun stated that recent media reports have covered the arbitration process regarding Turkey's Iraq-Turkey crude oil pipeline agreements, saying, "There are reports that the Paris Court of Appeal, following Turkey's objection to the arbitration ruling issued against the Republic of Turkey, decided to reject the objection on March 10, 2026. It is alleged that the $1.47 billion compensation, along with interest and other financial burdens, has turned into a massive public liability that could reach $3 to $3.5 billion. So, who will pay this bill? If this is true, will those who signed these decisions pay it, or will those who profited from this process pay it?"

Pointing out that the cost will once again be paid by retirees, workers, farmers, tradespeople, and 86 million citizens, Olgun asked, "However, the issue is not just the compensation to be paid. The real question is: While the Republic of Turkey is facing such a heavy ruling, who has profited from this process? What is the legal justification for the privilege granted to the company named 'Powertrans' in 2011 without a tender? Why was no tender held? Why was competition not allowed? Why was this activity, which is of strategic importance for Turkey, left to a single company?"

Olgun added, "Whose company is Powertrans really? According to allegations that have been circulating in the public eye for years, the company's establishment involves Singapore-based fund companies, partnership structures linked to Northern Iraq, and 'offshore' organizations. It is claimed that the company's management is influenced by individuals who have previously served in certain holdings and people connected to former high-level public officials. We want these allegations to be investigated with official records here; if they are not true, let them be refuted before the nation, and if they are true, let those responsible be held accountable."

Touching upon the Central Bank's balance sheet, Olgun said, "While we have been unable to collect our approximately $1.6 billion receivable from Iraq for forty years... this receivable appears as 75.4 billion Turkish liras in the balance sheet dated July 3, 2026."

Bozan: The day will come when the billions coming out of the citizen's pocket will be recouped from those who signed this decision

DEM Party Mersin MP Ali Bozan stated that a decision was taken by the Council of Ministers of the time on July 18, 2011, and that Turkey would be sentenced to compensation in accordance with this decision, saying, "The basis of the decision that came out of the Arbitration Court today is the 2011 Council of Ministers decision, and those responsible are the ministers who signed this decision. Even today, according to the Civil Servants Law No. 657, what happens when a public official causes any kind of damage to the public? According to the law, the state goes and recoups it. So, we say: There is no need for an investigation, friends. The Minister of Energy made a statement and said: 'Well, we will settle, we also have receivables from them.' We have receivables, but the receivable is this country's receivable, the receivable of 86 million citizens. While you are doing the offsetting there, you will give up the receivable of 86 million citizens, and as a result, the billions of dollars that will come out of the pockets of 86 million citizens living in this country will one day be recouped from the people who signed this decision."

Yüksel: As of today, there is no finalized decision

AKP İstanbul MP Cüneyt Yüksel, in his speech against the IYI Party's research motion, argued that the motion turned the long-standing legal dispute between Turkey and Iraq into political material. Yüksel said, "The research motion brought before us today is nothing more than an attempt to take the legal dispute arising from an energy treaty with a history of nearly half a century between Turkey and Iraq out of context and turn it into a political accusation file against AKP governments."

Making assessments regarding the party to the arbitration case, Yüksel said, "What is at issue here is an arbitration case. The company doing the oil transportation work that is the subject of that arbitration case is BOTAŞ. BOTAŞ operates the Iraq-Turkey Pipeline; it is a company established for this purpose anyway. It transports the oil coming from Iraq to Ceyhan, and from there, it loads the oil sold by the Iraqi side onto the ships determined by Iraq. BOTAŞ has nothing to do with oil sales or the private companies mentioned here; it only does a transportation job. The company mentioned here has nothing to do with the arbitration case. They would see this if they just looked at this arbitration ruling, which is publicly available everywhere, even though they describe it as 'We accessed secret information.'"

Arguing that the arbitration process has not yet concluded, Yüksel said, "It was decided in the arbitration case that both countries should pay compensation to each other. Since Turkey's receivables go back to the 90s, interest will also be applied to them, and of course, our receivables will rise to much higher levels. The decision on this will also be made at the enforcement stage in court. Who owes whom how much will be clarified as a result of that court. As of today, there is no finalized decision in this sense. Instead of voicing Turkey's claims, you are saying things that even Iraq does not demand."

Yavuzyılmaz: AKP lost the Paris case

Zonguldak MP Deniz Yavuzyılmaz, who took the floor to explain the rationale of the motion submitted by the CHP, emphasized that the AKP lost the Paris case, stating, "We have reached the result of this case, which has been hidden from the public in Turkey for four months. We have revealed with documents that this case, filed at the Paris Court of Appeal for the cancellation of the $1 billion 471 million fine imposed on Turkey by the arbitration due to irregularities committed by the AKP in the Iraq-Turkey crude oil pipeline, has been lost. Unfortunately, the countdown has begun for the repayment of the $1 billion 471 million fine. I warn you from here: This fine amount must be collected not from 86 million citizens, but from the assets of Tayyip Erdoğan and the relevant AKP executives."

Continuing his assessments regarding the arbitration ruling, Yavuzyılmaz said, "According to the final arbitration ruling, $673 million of this fine stems from the sale of 233 million barrels of irregularly transported oil at $5.77 cheaper per barrel. So, who bought this smuggled and cheap oil? According to the Iraq Energy Institute report, of course, Israel bought this oil, Greece bought it, the Greek Cypriot Administration and a few other countries bought it."

Yavuzyılmaz said, "Iraq has filed a kind of enforcement lawsuit in America to collect the $1 billion 471 million fine amount. In this case, the AKP is trying to offset this fine amount, which it created during its own term, against Turkey's receivables from Iraq that arose before its own term, in 1990, and their interest."

Mertoğlu: There is no finalized compensation decision

Rize MP Harun Mertoğlu, speaking on behalf of the AKP Group, rejected the allegations in the rationale of the motion submitted by the CHP, saying, "The group motion submitted by the CHP Group, which makes various allegations regarding the arbitration case between Turkey and Iraq, is literally creating a perception with expressions that mix events, distort procedural processes, and are mostly lies, slander, and untrue. Especially, first of all, there is no secret document. The shared court documents are publicly available documents submitted to the enforcement file heard in the USA. Anyone who wishes can access these documents through the relevant systems."

Mertoğlu said, "The arbitration panel rejected 4 of Iraq's 5 claims and accepted only 1. A significant portion of Turkey's demands within the scope of the counter-suit were accepted. The final balance of receivables and debts of the parties will be clarified at the end of the ongoing enforcement process in the USA. Therefore, there is no finalized compensation decision as alleged. Although this claim has been refuted many times, it is brought before us again and again like warmed-up food in order to change their own agenda."

Mertoğlu also said, "The latest statements were made during a critical period when our Minister, Mr. Alparslan Bayraktar, is discussing new energy projects in Iraq and the resolution of the arbitration process through peace... We will also start oil exploration soon in Rize, in my hometown, off the coast of Çayeli."

Günaydın: Which one is a lie, which one is slander?

CHP Group Deputy Chairman Gökhan Günaydın responded to the statements of the AKP members, saying, "Let me tell you now how he tried to explain that we are lying and slandering. The one who says 'You are lying and slandering' says: 'We did not lose this recently, we lost it in March 2023.' He is also saying it wrong, you lost it on February 13, 2023. How much did you lose? $1 billion 421 million. Then he says: 'We took this to appeal in France. In France, Iraq's four claims were rejected, one was accepted.' Thank God that happened, if it were all of them, who knows how much it would have been? Well, what is the final receivable/payable within this framework? A fine of 70 billion liras has been imposed on the country."

Günaydın said, "Then he says: 'We took this to enforcement in America.' Which one of what we said is a lie, which one is slander? You cannot come out and say a single word there for three minutes to cover up the facts."

Akbaşoğlu: There is no $1.47 billion compensation in question

AKP Group Deputy Chairman and Çankırı MP Muhammet Emin Akbaşoğlu also said, "There is absolutely no $1.47 billion compensation in question as alleged; this is an obvious lie. The same lie was repeated before and has been refuted many times. As a requirement of international law, the court process is currently continuing within the framework of the rules of international law, the enforcement process in America. With our national defense industry, with our national defense industry that we have increased to over 80 percent, we are becoming a country that everyone envies in terms of domestic and national energy production with our national energy move, God willing... Whether you like it or not, we will definitely realize a fully independent Turkey in energy as well."

Poyraz: Let a technical person come and explain this issue

IYI Party Group Deputy Chairman and Antalya MP Uğur Poyraz stated that there is a judicial process in place, saying, "There is a ruling issued against Turkey in this judicial process. Our speaker, Mr. Türkkan, expressed his concerns about this. 'Now, let's leave yesterday aside, if this judicial process ends against Turkey tomorrow or the next day, it will have consequences for Turkey that we cannot overcome. How do we solve these? At least let an answer be given to these.' he said. We got Gabar again, and this time we also got Çayeli regarding gas."

Poyraz said the following:

"Let a technical person come - not with an information note - what measures should we take regarding this issue, what should we do? Let's talk about this. No measures are being discussed regarding this. We say we have concerns about this issue, how will we do this? 'Sir, don't worry, we will handle it.' they say. Well, you haven't been able to handle it. 'Bring the rest of it, at least let's handle it in the Parliament with a common mind.' said our speaker; there is no answer to that either."