Disagreements between the autonomous Kurdish region and
Baghdad have been a source of major tensions in recent years. The 2005
constitution stipulated that Iraqi Kurdistan, which has an identity distinct
from Iraq, is a federal entity recognised by Iraq and the United Nations, and
the 2010 Erbil agreement with Baghdad outlined how power would be
shared. But the Kurdistan Regional Government (KRG) has protested their
lack of implementation, and relations with Baghdad have been highly
acrimonious. Oil has been at the centre of the dispute, with Baghdad
furious that Erbil signed production-sharing agreements with international
oil companies (IOCs) without its say-so, and Kurdistan wanting to export
oil independently rather than through the central State Organisation for
the Marketing of Oil (SOMO). The Kurds accused former prime minister
Nouri Al-Maliki of assuming too many powers, and have threatened to
hold a referendum on independence. The appointment of Prime Minister
Haider Al-Abadi has led to some improvement in the Baghdad/Erbil
relationship. But the advance of the Islamic State (IS) jihadist group has
been a major security and financial challenge for the Kurds. More than
1,000 members of the regional Peshmerga force have been killed, and the
region is struggling to cope with a massive influx of refugees from the Iraqi
and Syrian conflicts.