International Ruling Upheld, Mandating Turkey Compensate Iraq in Oil Pipeline Case

Turkey lost its appeal before the Paris Court of Appeal, failing to annul an international arbitration ruling favoring Iraq regarding the crude oil pipeline connecting the two nations. This decision now obligates Turkey to pay a financial compensation of $1.471 billion. Deniz Yavuz Yılmaz, a Republican People's Party (CHP) deputy for Zonguldak, disclosed details of the case, which the Turkish government reportedly sought to suppress. Yılmaz announced on social media the failure of Turkey's efforts to cancel the penalty, supporting his claims with official documents. Yılmaz stated: "The AK Party government lost the Paris case, and we obtained ruling documents they attempted to conceal. We've proven the loss of the appeal filed in Paris to overturn the fine from the international arbitration court, due to government violations concerning the Iraq-Turkey crude oil pipeline. The countdown to pay the $1.471 billion fine has now begun." Regarding the crisis's background, the opposition deputy explained that the International Arbitration Court issued a final ruling on February 13, 2023, compelling Turkey to pay Iraq net compensation of $1.471 billion. This ruling stems from Ankara's actions between May 21, 2014, and September 30, 2018, when it illegally transported and shipped Iraqi oil via the Turkish port of Ceyhan without Baghdad's central government consent, leading to sales below Iraq's stipulated price. Yavuz Yılmaz highlighted that he was the first to publicly reveal the 277-page documents of this final arbitration decision. While the Turkish government previously announced filing an appeal in Paris to revoke the decision, recent investigations and documents confirmed the French court's rejection of Turkey's request and its upholding of the fine.