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Hüseyin Özbek warned in 2023: The $1.47 billion penalty controversy grows

CHP's Deniz Yavuzyılmaz brought the $1.47 billion arbitration penalty imposed on Turkey to the agenda; while the Center for Combating Disinformation denied the allegations, it also confirmed the penalty. 12punto columnist Lawyer Hüseyin Özbek had shared all the details of the issue in an article he wrote 2 years ago.

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CHP Deputy Chairman Deniz Yavuzyılmazbrought to the agenda the $1 billion 471 million penalty imposed on Turkey by the International Arbitration court on the grounds that the AKP had canceled the 50-year Turkey-Iraq crude oil pipeline agreement.

“I am sharing the documents that will lead to President Erdoğan being tried at the Supreme Council!” said Yavuzyılmaz, sharing the International Arbitration Court's files on his X account.

While Yavuzyılmaz's statements caused a wide stir, a notable statement came from the Center for Combating Disinformation, affiliated with the Presidency's Directorate of Communications. The center accused Yavuzyılmaz of “spreading misleading information to the public.” However, in the same statement, the $1.47 billion penalty amount was also confirmed.


In the statement by the DMM, it was stated that the decision rendered in international arbitration has not yet become final, the annulment lawsuit process is ongoing, and therefore there is no "finalized" compensation decision rendered against Turkey.

12punto columnist Lawyer Hüseyin Özbek, addressed the $1 billion 471 million penalty that has occupied the public agenda in his March 31, 2023 article titled "Arbitration Bill" had written in his article titled.

Özbek's article is as follows:

The heavy bill for the oil trade conducted with the Regional Kurdish administration, bypassing Baghdad, was recently placed before Turkey. The Iraqi central government had applied to the International Court of Arbitration regarding the oil trade conducted by the KRG with BOTAŞ via the Kirkuk-Ceyhan pipeline. The ICC (International Chamber of Commerce) recently concluded the arbitration proceedings and sentenced Turkey to pay $1.4 billion in damages.

Look at where a management approach, unaware of international law and international relations and indifferent to national interests, has dragged Turkey. Turkey's traditional foreign policy, which observes regional balances and national interests,  when replaced by arbitrariness, the resulting picture of destruction is exemplary.

First, let's look at how the stones of the dead-end street leading to the $1.4 billion arbitration penalty were laid. Let's move on to the exemplary documents of fanning the ethnic fire started by imperial arsonists against the territorial integrity of our neighbor. Let our first document be the FETÖ's dated May 18, 2012,  Zaman Newspaper:  

“Nechirvan Barzani made his first visit to Turkey after taking office. Barzani  In Ankara, Foreign Minister Ahmet Davutoğlu met with Prime Minister Recep Tayyip Erdoğan and President Abdullah Gül. During the meeting, which was also attended by Energy Minister Taner Yıldız, topics such as the sale of petroleum products, truck trade between the two countries, the inadequacy of border gates, Turkey's request to open at least two more border gates, and electricity sales were brought to the agenda. Diplomatic sources, noting that five-eighths of Turkey's trade with Iraq  is conducted with the administration in the north, noted that many alternatives and cooperation opportunities regarding energy were also discussed.

After reminding our readers that while Barzani was being hosted at the highest level in Turkey, Baghdad was vehemently protesting Turkey, let us move on to the second document. Minister of Energy and Natural Resources Taner Yıldız, who went to Erbil to attend the 1st International Energy Conference organized by the Strategic Technical Economic Research Center (SETAM) on May 20, emphasized that the practice of buying oil and providing petroleum products, which was suspended in 2007, would be restarted, that the initial implementation would be carried out with tankers, and that there was no question of closing the Kirkuk-Yumurtalık crude oil pipeline; on the contrary, they were in favor of using it at 100 percent capacity.  Regional Kurdish Government Minister of Natural Resources Ashti Hawrami, in his speech at the same meeting, stated that they were working on a project to deliver natural gas extracted from Northern Iraq to Turkey, adding that the primary target was the cities in Southeastern Anatolia. 

While the Sabah newspaper reported the news with the headline "Northern Iraq Oil Will Go Through Turkey," Milliyet used the headline "Kurdish Gas is Coming to the Southeast with BOTAŞ." 

Let the May 29 article by Erdal Sağlam from Hürriyet be our 3rd document:  “In my opinion, the government took one of the most positive steps in the energy field last week and signed a comprehensive energy agreement with the Northern Iraq Kurdish Administration... Last week in Radikal, Cengiz Çandar summarized this agreement as a very important development concerning the future of Turkey, the region, and directly the Kurdish issue. The fact that the US company Exxon took a step last year that would jeopardize the resources known to be rich in the south, i.e., with the Iraqi central government, and started exploration in Northern Iraq, increased the whole world's belief in the region in terms of energy, and developments began to follow one another. Now, giant oil companies are asking for exploration permits in the region.”

Let the thanks of Iraqi Regional Kurdish Government Prime Minister Nechirvan Barzani to Turkey, which has burned its bridges with the Iraqi central government, be our 4th document:  "Our presence here today with our Turkish brothers is also an indication of the cooperation between us. Turkey has made major investments in the Kurdistan region. Turkey is the largest foreign investor here. Developing strategic relations between the Kurdistan Region and Turkey is very important. Mutual understanding and joint work will benefit both sides." 

Let our 5th document be the news reported by Reuters with the headline, "The Kurdistan Regional Government in Northern Iraq announced yesterday that oil exports will be carried out via Turkey."  Our 6th document is from the British newspaper The Telegraph, with the headline: "Kurdistan will boost oil companies in Iraq's semi-autonomous region. It is understood that it has begun transporting crude oil to Turkey on the other side of the border in a politically controversial move."  In the report, oil analyst Malcolm Graham-Wood's analysis: "We didn't expect it this early. The opening of the border tremendously increases Kurdistan's ability to sell oil," implicitly means that the pipeline to be laid will flow oil to the Turkish side, and oxygen to Northern Iraq that will help the nascent Kurdistan stand on its feet!

Our 6th document is the warning from Iraqi central government spokesperson Ali al-Dabbagh against Turkey bypassing Baghdad to make an oil deal with the Regional Kurdish administration and starting imports: "Turkey must stop illegal oil exports made through its territory. Oil and natural gas belong to all Iraqis. These must be exported by the Central Government, and their revenues must go to the Central Government, which represents all Iraqis."

Let our 7th document be the response to Baghdad's statement from Minister of Economy Zafer Çağlayan: "There is no obstacle to oil shipments from Northern Iraq." 

Our 8th document is the fact that, as if responding to the central government's harsh reaction, the Energy Market Regulatory Authority (EPDK) granted the Istanbul-based company Siyah Kalem a 90-day period to make an official agreement for natural gas imports from Northern Iraq.

Let our 9th document be the scathing statement by Iraqi Prime Minister Maliki following the visit of then-Turkish Foreign Minister Ahmet Davutoğlu—who caused problems with many zeros while preaching 'zero problems'—to Kirkuk without Baghdad's knowledge: "My brother Ahmet's visit was not on the agenda. We were shocked by the Kirkuk visit. Neither the governor, nor the foreign minister, nor I were informed of this visit. We have established a commission to investigate not only the visit but also the non-transparent attitude displayed toward the Northern Iraq administration. Significant progress was made with 'zero problems.' But we are back to square one. Every country that incites ethnic and sectarian differences should know that these policies will return to haunt them." 

And our final document is again from Maliki. Maliki's statements and warnings should be read as a flare signaling the $1.4 billion bill that would be placed before Turkey: 'Trade is being conducted, the border is being opened, agreements are being made. They are our administration, we have no problem, but relations must take place through the central government. Turkey would also not accept us communicating directly with ethnic groups. We have no intention of interfering in the internal affairs of other countries. We are concerned about the permission granted for the construction of an oil pipeline. These are contrary to conventions. There can be no contact without the approval of the central government.'

We do not know if their faces will turn red in the face of these cautionary documents whose ink has barely dried. Let us end our article with a slogan that the historically ignorant, politically impoverished Neo-Ottoman crowd is very fond of.  The Turkey you have made a prisoner of arbitration is proud of you!